Mountain Province Diamonds Closes C$4.5 Million Private Placement

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

    TORONTO and NEW YORK, Aug. 4 /CNW/ - Mountain Province Diamonds Inc.
("Mountain Province" or the "Company") (TSX: MPV, AMEX:   MDM) today announced
the completion of the previously announced C$4.5 million private placement.
    An aggregate of 3,000,000 Units of the Company have been issued at a
price of C$1.50 (US$1.30) per Unit for aggregate gross proceeds of C$4.5
million. Each Unit is comprised of one common share of the Company and
one-half of one common share purchase warrant. Each whole warrant entitles the
holder to acquire one additional common share at an exercise price of C$2.00
(US$1.73) for a period of 18 months.
    Proceeds from the private placement will be used to support the planned
feasibility study for the Gahcho Kué project and for general corporate
    The securities described herein have not been, and will not be,
registered under the United States Securities Act of 1933, as amended (the
"U.S. Securities Act"), or any state securities laws, and accordingly, may not
be offered or sold within the United States except in compliance with the
registration requirements of the U.S. Securities Act and applicable state
securities requirements or pursuant to exemptions therefrom. This press
release does not constitute an offer to sell or a solicitation of an offer to
buy any of the Company's securities in the United States.

    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

    Note to U.S. Investors

    This press release describes minerals which have been classified as
"indicated resources" and "inferred resources" under Canadian National
Instrument 43-101. We advise U.S. investors that while those terms are
recognized and required by Canadian regulations, the U.S. Securities and
Exchange Commission do not recognize them. "Inferred resources" have a great
amount of uncertainty as to their existence, and great uncertainty as to their
economic and legal feasibility. It cannot be assumed that all or any part of
an inferred mineral resource as defined under Canadian National Instrument
43-101 will ever be upgraded to a higher category. Under Canadian rules,
estimates of inferred mineral resources may not form the basis of feasibility
or pre-feasibility studies, except in rare cases. U.S. investors are cautioned
not to assume that any part or all of mineral deposits in these categories
will ever be converted into reserves nor that part or all of an inferred
resource exists, or is economically or legally minable.

    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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