Mountain Province Diamonds Announces Fourth Quarter 2022 Production and Sales Results, and Guidance for 2023

TORONTO and NEW YORK, Jan. 19, 2023 – Mountain Province Diamonds Inc. (“Mountain Province”, the “Company”) (TSX: MPVD) (OTC: MPVD) today announces production and sales results for the fourth quarter ended December 31, 2022 (“the Quarter” or “Q4 2022”) from the Gahcho Kué Diamond Mine (“GK Mine”). All figures are expressed in Canadian dollars unless otherwise noted.

Q4 and FY 2022 Highlights

• 1,621,800 carats recovered during Q4 at an average grade of 1.96 carats per tonne. Full year 2022 production of 5.52 million carats against guidance of 5.60 – 5.80 million carats.
• In 2022, approximately 2.7 million carats were sold at an average value of $146 per carat (US$112 per carat) for total proceeds of $388.8 million (US$297.3 million). This compared to 3.2 million carats sold at an average value of $94 per carat (US$75 per carat) for total proceeds of $298.4 million (US$236.9 million) in FY 2021.
• Ore mined on a full year 2022 basis was 4.1 million tonnes against guidance of 3.75 – 4.30 million tonnes. Ore processed on a full year 2022 basis was 3.1 million tonnes against guidance of 3.0 – 3.2 million tonnes.

Mark Wall, the Company’s President and Chief Executive Officer, commented:

“After a very challenging start to the year, primarily due to a spike in Covid cases at the GK Mine, a detailed recovery plan was developed and executed resulting in quarter over quarter improvement through 2022.  We closed out 2022 with the refinance of our bonds, including reducing our total debt by approximately US$60 million compared to this time last year.  We now enter the 2023 cold weather and ice road resupply season with good momentum and a backdrop of a resilient rough diamond market.”

Q4 and FY 2022 Production Highlights (All figures reported on a 100% basis unless otherwise stated)

• 10,144,844 total tonnes mined during the quarter, a 6% decrease on comparable period (Q4 2021: 10,812,723). 33,947,188 total tonnes mined during FY 2022, a 4% decrease from comparable period (FY 2021: 35,447,014).
• 705,924 ore tonnes mined during the quarter, a 31% decrease on comparable period (Q4 2021: 1,019,671). 4,113,648 ore tonnes mined during FY 2022, a 16% increase from comparable period (FY 2021: 3,561,417).
• 828,644 ore tonnes treated during the quarter, a 2% increase on comparable period (Q4 2021: 813,308). 3,102,219 ore tonnes treated during FY 2022, a 1% increase from comparable period (FY 2021: 3,082,572).
• 1,621,800 carats recovered during the quarter at an average grade of 1.96 carats per tonne, 7% higher than comparable quarter (Q4 2021: 1,511,253 carats at 1.86). 5,519,309 carats recovered during FY 2022 at an average grade of 1.78 carats per tonne, 12% lower than comparable period (FY 2021: 6,229,042 carats at 2.02).

Q4 and FY 2022 Production Statistics

Q4 and FY22 Sales Performance

Q4 2022 diamond sales totaled 757,830 carats sold at an average value of $127 per carat (US$94 per carat) for total proceeds of $96.3 million (US$71.3 million) in comparison to 808,739 carats sold at an average value of $105 per carat (US$83 per carat) for total proceeds of $85.2 million (US$67.5 million) in Q4 2021

During FY 2022, 2,656,387 carats were sold at an average value of $146 per carat (US$112 per carat) for total proceeds of $388.8 million (US$297.3 million) in comparison to 3,158,418 carats sold at an average value of $94 per carat (US$75 per carat) for total proceeds of $298.4 million (US$236.9 million) in FY 2021.

Sentiment in the rough diamond market remains resilient despite some recent turbulence. Strong diamond jewellery sales during the holidays and lower rough diamond supply volumes from the major producers are expected to maintain these stable prices through to the Company’s upcoming January sale.

Medium to longer-term, the Company’s outlook for rough diamonds remains positive. Retail diamond jewellery sales in the important US market confirm a growing preference for smaller, lower priced diamonds which align well with the diamond profile of the GK Mine.

2023 Guidance (all figures quoted on a 100% basis unless otherwise specified)

The Company wishes to provide operating and cost guidance for 2023, as follows:

• 37 – 42 million total tonnes mined (ore and waste)
• 4.1 – 4.5 million ore tonnes mined
• 3.2 – 3.5 million ore tonnes treated
• 5.6 – 6.1 million carats recovered
• Production costs of $127 – $137 per tonne treated
• Production costs of $70 – $80 per carat recovered
• Sustaining Capital Expenditure of $7 million (49% share)

About Mountain Province Diamonds Inc.

Mountain Province Diamonds is a 49% participant with De Beers Canada in the Gahcho Kué diamond mine located in Canada’s Northwest Territories. The Gahcho Kué Joint Venture property consists of several kimberlites that are actively being mined, developed, and explored for future development. The Company also controls 107,373 hectares of highly prospective mineral claims and leases surrounding the Gahcho Kué Mine that include an Indicated mineral resource for the Kelvin kimberlite and Inferred mineral resources for the Faraday kimberlites. Kelvin is estimated to contain 13.62 million carats (Mct) in 8.50 million tonnes (Mt) at a grade of 1.60 carats/tonne and value of US$63/carat. Faraday 2 is estimated to contain 5.45Mct in 2.07Mt at a grade of 2.63 carats/tonne and value of US$140/ct. Faraday 1-3 is estimated to contain 1.90Mct in 1.87Mt at a grade of 1.04 carats/tonne and value of US$75/carat. All resource estimations are based on a 1mm diamond size bottom cut-off.

For further information on Mountain Province Diamonds and to receive news releases by email, visit the Company’s website at www.mountainprovince.com.

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