Mountain Province Diamonds Announces Credit Approval for US$370M Term Loan Facility

Shares Issued and Outstanding: 135,204,550
TSX: MPV
NASDAQ: MDM

TORONTO and NEW YORK, Feb. 3, 2015 /CNW/ - Mountain Province Diamonds Inc. ("Mountain Province", the "Company") (TSX: MPV, NASDAQ: MDM) today announced that the Company has received credit approval for the previously announced US$370M term loan facility (the "Facility").

For reasons unrelated to the specifics of the transaction or the Gahcho Kué project Deutsche Bank A.G. has been replaced as a mandated lead arranger by the Bank of Nova Scotia ("Scotiabank"). Natixis S.A. and Nedbank Limited remain joint mandated lead arrangers with Scotiabank.

Commenting, Mountain Province CEO Patrick Evans said: "We welcome Scotiabank to the lending syndicate and are very pleased to have Canada's leading lender to the mining industry as part of the lending group. Significant progress was made to complete due diligence prior to the end of 2014 and credit approval has now been received from the lead arrangers."

Finalization of the Facility remains subject to conditions, including agreement on Facility documentation and syndication, which are expected shortly. Drawdown against the Facility is subject to arrangement of a cost overrun facility.

Mr. Evans added: "As at the end of December, 2014, the overall project development was more than 50 percent complete and remains on budget and schedule for first production on H2 2016."

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 Project consists of a cluster of four diamondiferous kimberlites, three of which have a probable mineral reserve of 35.4 million tonnes grading 1.57 carats per tonne for total diamond content of 55.5 million carats.

Gahcho Kué is the world's largest and richest new diamond development project. A 2014 NI 43-101 feasibility study report filed by Mountain Province (available on SEDAR) indicates that the Gahcho Kué project has an IRR of 32.6%.

The Gahcho Kué Joint Venture has received approval for a Class A Land Use Permit and Type A Water License, permits required for the completion of construction of the Gahcho Kué diamond mine.

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.

Forward-Looking Statements
This news release includes certain information that may constitute "forward-looking information" under applicable Canadian and US securities legislation. Forward-looking information includes, but is not limited to, the Company's strategic plans, future operations, future work programs and objectives. Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information contained in this press release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

SOURCE Mountain Province Diamonds Inc.