News

    Shares Issued and Outstanding: 59,895,481
    TSX: MPV
    AMEX: MDM

    TORONTO and NEW YORK, Dec. 16 /CNW/ - Mountain Province Diamonds Inc
("the Company") today provided an update on progress at the Gahcho Kué diamond
project in Canada's Northwest Territories, which is a joint venture between
the Company (49%) and De Beers Canada Inc (51%).

    Resource Drilling
    Following completion of the 2008 Tuzo bulk sampling program, the Joint
Venture has now concluded the resource drilling at the Gahcho Kué project.
Attention has now turned to completion of updated geology and resource models.

    Gahcho Kué Geology and Resource Models
    The Joint Venture has retained AMEC Americas Limited ("AMEC") to produce
a NI 43-101 Technical Report updating the Gahcho Kué geology and resource
models. AMEC will produce an independent report for Mountain Province, which
will be in a form that the Company will be able to release to shareholders.
The updated Technical Report is expected to be completed by the end of the
first quarter of 2009.

    Proposed Feasibility Study
    The Joint Venture has received a proposal from an independent engineering
firm to produce a NI 43-101 definitive feasibility study for the Gahcho Kué
project. The proposal is currently under consideration by the Joint Venture
partners.

    Permitting
    In view of the proposed feasibility study, the results of which are
expected to impact on the final project description, the Project Operator, De
Beers Canada, has advised the Mackenzie Valley Environmental Impact Review
Board that submission of the Gahcho Kué Environmental Impact Statement will be
deferred pending the completion of an updated project description. No fixed
date has been set for completion of the project description.

    Located in Canada's Northwest Territories, Gahcho Kué is one of the
largest new diamond projects under development globally. The project consists
of a cluster of three primary kimberlites with an indicated resource of
approximately 14.4 million tonnes grading at 1.64 carats per tonne
(approximately 23.6 million carats) and an inferred resource of approximately
17 million tonnes grading at 1.35 carats per tonne (approximately 22.9 million
carats). Gahcho Kué is currently in the permitting stage of development.
Mineral resources that are not mineral reserves do not have demonstrated
economic viability.
    Mountain Province Diamonds (49 percent) is a joint venture partner with
De Beers Canada Inc (51 percent) in the Gahcho Kué project. De Beers is the
operator of the project and can be called on to fund the project through to
commercial production.

    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 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.

    %CIK: 0001004530