Mountain Province Diamonds announces recovery of largest ever gem-quality diamond from Canadian drill program: 25.13 carats, valued at $440,000

    Diamond recovered at Gahcho Kué Diamond Project, a Joint Venture with
    De Beers Canada

    Shares Issued and Outstanding: 59,932,381
    TSX: MPV
    AMEX:   MDM

    TORONTO and NEW YORK, July 2 /CNW/ - Mountain Province Diamonds Inc.
("the Company") (TSX: MPV, AMEX:   MDM) is pleased to announce that a
25.13 carat gem quality diamond of excellent shape and clarity and good colour
has been recovered from the 2008 Tuzo bulk sample from the Gahcho Kué Diamond
Project, a joint venture between Mountain Province Diamonds and De Beers
Canada Inc. in Canada's Northwest Territories. Tuzo is one of three primary
kimberlites at Gahcho Kué, one of the largest new diamond mines under
development in the world.
    "To the best of our knowledge, this is the largest gem-quality diamond
ever recovered from a Canadian diamond exploration drill program," said
Mountain Province President and CEO Patrick Evans. "The diamond is a perfect
'ice crystal' and has been independently valued at approximately $17,500 per
carat, putting the diamond value at approximately $440,000. We are very
pleased with the recovery of a 25.13 carat diamond from Tuzo, which confirms
the potential for the Gahcho Kué kimberlites to host large diamonds."
    "From past years' exploration at Gahcho Kué, several other large diamonds
of gem quality have been recovered; including 9.9, 7, 6.6 and 5.9 carat
diamonds from the 5034 kimberlite, and 8.7, 6.4 and 4.9 carat diamonds from
the Hearne kimberlite. The presence of coarser diamonds is an important driver
of overall diamond value at Gahcho Kué," said Evans.
    On March 19, 2008, the Company announced the successful conclusion of the
large-diameter drill program at the Tuzo kimberlite. Concentration of the bulk
samples at De Beers' Grand Prairie facility was completed ahead of schedule in
May, 2008. Diamond recovery from the Tuzo bulk sample is currently taking
place at De Beers' GEMDL laboratory in South Africa with recovered diamonds
being sent to De Beers' Diamond Trading Company (DTC) in London for cleaning
and valuation. Results from this program will be released during the third
quarter of 2008.
    The Tuzo bulk sampling program was designed to recover approximately
1,500 carats using two 24-inch large-diameter drill rigs. A total of nine
holes were drilled, with seven holes to depths between approximately 100 and
130 meters and two holes to depths of approximately 300 meters. A total of
approximately 1,390 meters were drilled.
    Photographs of the Tuzo diamond can be viewed on the Company's website

    About Mountain Province Diamonds

    Mountain Province Diamonds is one of Canada's premier diamond exploration
and development companies. The Company's primary asset is its interest in the
Gahcho Kué Diamond Project. Located in Canada's Northwest Territories, Gahcho
Kué is one of the largest new diamond mines under development globally. The
project consists of a cluster of three primary kimberlites (Tuzo, 5034 and
Hearne) 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.
    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

    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: or to schedule an interview, please contact:   
Louie Diaz, Wilcox Group, (416) 203-6666,; Brooke
McLachlan, Wilcox Group, (604) 488-1100,

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