Mountain Province Diamonds 2009 Year-End Financial Statements

NEW YORK, July 6 MtnProv-Yr-End-Financ

Shares Issued and Outstanding: 60,097,746
AMEX: MDM

NEW YORK, July 6 /PRNewswire-FirstCall/ - Mountain Province Diamonds Inc. ("Mountain Province" or the "Company") (AMEX: MDM) today announced that its audited financial statements for the fiscal year ended March 31, 2009 contain disclosures related to the use of the going concern assumption in the preparation of its financial statements. Within the disclosures, management has discussed the Company's current financial situation and also its plans for the future funding of operations. This announcement is being made in compliance with Section 610(B) of the American Stock Exchange Company Guide, which requires listed companies to make a public announcement disclosing the receipt of an audit opinion that contains emphasis of matter commentary related to the use of the going concern assumption.
In a separate release earlier today, Mountain Province announced that the Company and De Beers Canada Inc ("De Beers"), its joint venture partner at the Gahcho Kue diamond project, have concluded a revised and restated joint venture agreement, which constitutes a material development. While negotiations for the revised and restated joint venture agreement were ongoing, the Company refrained from concluding financing arrangements which, if successful, would have avoided the abovementioned going concern reference. Following the announcement of the revised and restated joint venture agreement, the Company now intends pursuing financing alternatives to adequately fund working capital requirements. There can be no assurance that the Company will be successful in raising sufficient capital on acceptable terms.
Located in Canada's Northwest Territories, Gahcho Kue is one of the largest new diamond projects under development globally. Mountain Province (49%) and De Beers (51%) control the Gahcho Kue project through a joint venture. The project consists of a cluster of kimberlites, three of which have an indicated resource of approximately 30.2 million tonnes grading at 1.67 carats per tonne (approximately 50.5 million carats) and an inferred resource of approximately 6 million tonnes grading at 1.73 carats per tonne (approximately 10.3 million carats). Mineral resources that are not mineral reserves do not have demonstrated economic viability.

Qualified Person

This news release has been prepared under the supervision of Carl G. Verley, P.Geo., who serves as the qualified person under National Instrument 43-101.

Note to U.S. Investors

This press release describes minerals which have been classified as "indicated resources" and "inferred resources" under Canadian National Instrument 43-101. We advise U.S. investors that while those terms are recognized and required by Canadian regulations, the U.S. Securities and Exchange Commission do not recognize them. "Inferred resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource as defined under Canadian National Instrument 43-101 will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, except in rare cases. U.S. investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves nor that part or all of an inferred resource exists, or is economically or legally minable.

Forward-Looking Statements

This news 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 the control of the Company.

SOURCE Mountain Province Diamonds Inc.