Mountain Province Diamonds Inc.
TSX : MPV
AMEX : MDM

Mountain Province Diamonds Inc.

July 25, 2005 08:30 ET

Mountain Province Diamonds, Inc. Reports That De Beers Has Approved The Funding To Advance The Gahcho Kue Project

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - July 25, 2005) - Mountain Province Diamonds Inc., (the Company) (TSX:MPV)(AMEX:MDM) is pleased to announce that it has been informed by its joint-venture partner, De Beers Canada Inc., that De Beers has approved funding totaling C$38.5 million to start the environmental assessment and permitting process of the Gahcho Kue Project and to conduct a drilling and sampling program this winter. The Project consists of the Hearne, 5034 and the Tuzo kimberlite bodies, which are located at Kennady Lake in the joint venture's AK mining leases situated in the Northwest Territories of Canada.

On June 29, 2005, the Company announced that the comprehensive study had been concluded. This study was taken to full feasibility study confidence levels over the areas required for environmental assessment purposes. On the basis of the results of this study De Beers has developed a proposed time table and budget over 2005 and 2006 to advance the project to the permitting phase. The environmental assessment and permitting process will be initiated together with the necessary consultation and stakeholder engagement activities. There will also be a large diameter drilling and sampling program this coming winter on the 5034 and Tuzo kimberlites to improve resource confidence (from inferred to indicated resource for parts of these pipes) as well as delineation, geotechnical, and hydrological drilling to improve input data for mine design.

Elizabeth Kirkwood, Chairman and CFO, stated" We are obviously very pleased that De Beers is advancing the Project to the next phase. We look forward to the sampling program which could hopefully enhance some of the results obtained previously".

Mountain Province Diamonds Inc. is a company developing a diamond deposit. The AK mining leases, located in the Northwest Territories of Canada are now held 44.1% by Mountain Province Diamonds Inc., 4.9% by Camphor Ventures Inc. (TSX VENTURE:CFV), and 51% by De Beers Canada Inc. As reported in its news release on March 7th, 1997, Mountain Province Diamonds Inc. and its partner entered into a joint agreement with De Beers Canada Exploration Inc. formerly known as Monopros Ltd. (a wholly owned subsidiary of De Beers sa ) under which De Beers Canada Inc. has the right to earn up to a 60% interest in the AK property by taking the project to commercial production.

"Jan W. Vandersande"

Jan W. Vandersande, Ph.D.

President & CEO

This release may contain forward-looking statements, within the meaning of the "safe-harbor" provision of the Private Securities Litigation Reform Act of 1995, regarding the Company's business or financial condition. Actual results could differ materially from those described in this news release as a result of numerous factors, some of which are outside of the control of the Company.

USA Office: 3633 E. Inland Empire Blvd., Suite 465, Ontario, CA 91764, (909) 466-1411

CANADA Office: 21 Nesbitt Drive, Toronto, Ontario, Canada M4W 2G2

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