Mountain Province Diamonds Announces Commencement of Gahcho Kué Feasibility Study

    Shares Issued and Outstanding: 63,097,746
    TSX: MPV
    AMEX:   MDM

    TORONTO and NEW YORK, Sept. 1 /CNW/ - Mountain Province Diamonds Inc.
("Mountain Province" or the "Company") (TSX: MPV, AMEX:   MDM) today announced
that the Gahcho Kué Joint Venture between De Beers Canada (51%) and the
Company (49%) has appointed JDS Energy and Mining ("JDS") to conduct the
Gahcho Kué Feasibility Study. The selection of JDS was based on technical,
project management and economic merits.
    The Feasibility Study, which has commenced, is expected to take
approximately twelve months to complete with a budget of approximately $10
    Mr. Patrick Evans, President and CEO of Mountain Province Diamonds, said:
"JDS and our joint venture partner, De Beers Canada, have considerable
experience in Canada's diamond industry. This ensures that the Feasibility
Study will identify the optimal development options for the Gahcho Kué

    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 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

    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

For further information:

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

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