Mountain Province Provides Update on Gahcho Kué Diamond Project



    Joint Venture approves $38 million budget for 2008

    2008 Tuzo bulk sampling program commences

    Shares Issued and Outstanding: 59,788,881
    TSX: MPV
    AMEX:   MDM

    TORONTO, and NEW YORK, Dec. 17 /CNW/ - Mountain Province Diamonds Inc
("the Company") (TSX: MPV, AMEX:   MDM) today provided an update on progress at
the Gahcho Kué diamond project in Canada's Northwest Territories, which is a
joint venture between Mountain Province (49%) and De Beers Canada Inc (51%).

    Gahcho Kué 2008 Budget

    Mountain Province is pleased to announce that the joint venture partners
have approved a C$38 million budget for 2008 in support of:

    
    -   The 2008 Tuzo bulk sampling program;
    -   The update of the Gahcho Kué technical study; and
    -   The Gahcho Kué project permitting.
    

    2008 Tuzo Kimberlite Bulk Sampling Program

    Mobilisation for the 2008 Tuzo bulk sampling program has commenced.
Flooding of the ice runway and the Tuzo drill pads is currently underway.
    The bulk sampling of Tuzo will be conducted by large-diameter drilling
using two 24-inch drill rigs. A total of nine large-diameter holes will be
drilled to recover a diamond parcel of approximately 1,500 carats. Seven of
the nine holes will be drilled to depths of approximately 100 meters and the
remaining two holes will be drilled to depths of approximately 300 meters. The
drilling is expected to commence in mid-February 2008, and be completed within
60 days.

    Technical Study Update

    Mountain Province also announced that work on the update of the Gahcho
Kué technical study is continuing and is expected to be completed by the
second quarter of 2008.

    Permitting

    The Mackenzie Valley Environmental Impact Review Board (MVEIRB) published
the final terms of reference for the Gahcho Kué Environmental Impact Statement
(EIS) on October 5, 2007. Details of the terms of reference are available on
website of the MVEIRB at www.mveirb.nt.ca. It is currently anticipated that
the Gahcho Kué EIS will be filed during 2008.

    2007 5034 North Lobe Kimberlite Bulk Sampling Program

    The 2007 5034 North Lobe bulk sampling program concluded at the end of
October. Five of the planned six large-diameter core holes were completed and
approximately 33 tonnes of kimberlite was recovered, which the project
operator, De Beers Canada, considers sufficient to complete the planned
objective of the diamond size distribution modeling for the 5034 North Lobe
diamonds. It is anticipated that the 5035 North Lobe kimberlite resource will
be upgraded to an "indicated resource" during the second quarter of 2008.

    Kimberlite Geology and Resource Modeling

    The Gahcho Kué project operator, De Beers Canada, has also advised
Mountain Province that the update of the geology and resource models for the
5034, Hearne and Tuzo kimberlites will be completed at the end of the first
quarter 2008. Classification of the resource and review of this work will take
place early in the second quarter of 2008, when the final results will be
released. The finalization of the Tuzo diamond revenue model will depend on
the success of the 2008 Tuzo bulk sampling program and is expected to be
completed by the end of the first quarter of 2009.

    Located in Canada's Northwest Territories, Gahcho Kué is the largest new
diamond project 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 and advanced exploration stage of development.

    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.





For further information:

For further information: Mountain Province Diamonds Inc., Patrick Evans,
President and CEO, Tel: (416) 670-5114


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