De Beers and Mountain Province Diamonds are Pleased with Support as Public Hearings into Gahcho Kué Project Conclude in the

  De Beers and Mountain Province Diamonds are Pleased with Support as Public
    Hearings into Gahcho Kué Project Conclude in the Northwest Territories

  PR Newswire

  YELLOWKNIFE, Northwest Territories, December 11, 2012

YELLOWKNIFE, Northwest Territories, December 11, 2012 /PRNewswire/ --

Economic benefits for the Northwest Territories and Canada, a comprehensive
environmental plan and extensive engagement with communities and regulators
drew praise from both government and a number of Aboriginal groups that
attended five days of public hearings into the proposed Gahcho Kué Project,
280km northeast of Yellowknife.

Gahcho Kué, a joint venture of De Beers and Mountain Province Diamonds, began
the Environmental Impact Review process in 2006. In December 2011, an 11,000
page Environmental Impact Statement was submitted to the Mackenzie Valley
Environmental Impact Review Board. The Gahcho Kué Panel struck by the Board
held community and public hearings in Dettah, Lutsel K'e and
Yellowknifebetween November 30 and December 7.

De Beers Canada Chief Operating Officer Glen Koropchuk, who provided opening
remarks at the Yellowknife hearings on behalf of the Gahcho Kué JV, said the
years of working collaboratively with the local communities near the Gahcho
Kué site helped shape the project design. "We are confident that the Project
is not only technically sound, but also reflects our commitment to sustainable
development by listening to our community partners and incorporating key input
that makes this project viable and respects local priorities."

The proposed Gahcho Kué Project comes at a time when the GDP of the Northwest
Territories has started to decline due to the reduced output from the
territories' two oldest diamond producers.

Mountain Province Diamonds President & CEO Patrick Evans said: "Since the
discovery of Gahcho Kué 20 years ago, more than $200 million has been invested
in exploration, social and environmental studies, engineering design,
feasibility studies and consultation. This reflects an extraordinary
commitment on the part of our shareholders to the people and diamond industry
of Canada'sNorthwest Territories. Last week's public hearings mark an
important milestone towards the development of Canada's next great diamond
mine. The successful permitting of Gahcho Kué will secure the Northwest
Territories' position as one of the world's leading diamond producing

During the hearings, a groundbreaking collaborative monitoring forum, Ni Hadi
Yati , was proposed jointly by the Yellowknives Dene First Nation, Lutsel K'e
Dene First Nation, Deninu K'ue First Nation, Tlicho Government and De Beers.
This forum would be funded by the Gahcho Kué JV and is proposed to provide
increased capacity to Aboriginal groups to improve understanding and
involvement in environmental monitoring programs. The North Slave Métis
Alliance and NWT Métis Nation have also been invited to participate.

De Beers and Mountain Province Diamonds wish to thank all those that
participated in the public hearings and throughout the Environmental Impact
Review process and look forward to a positive report from the Gahcho Kué Panel
of the Mackenzie Valley Environmental Impact Review Board.

About De Beers Group:

De Beers Group is a member of the Anglo American plc group. Established in
1888, De Beers is the world's leading diamond company with unrivalled
expertise in the exploration, mining and marketing of diamonds.Together
withits joint venture partners,De Beers employs approximately 16,000 people
across the diamond pipeline, andis the world's largest diamond producer by
value, with mining operations in Botswana, Canada, Namibia and South Africa.
As part of the company's operating philosophy, the people of De Beers are
committed to Living up to Diamonds by making a lasting contribution to the
communities in which they live and work, and transforming natural resources
into shared national wealth. De Beers operates two mines in Canada, the
underground Snap Lake Mine in the Northwest Territories and the open pit
Victor Mine in northern Ontario. For further information about De Beers visit .

About Mountain Province Diamonds:

Gahcho Kué is the world's largest and richest new diamond mine. Mountain
Province is a 49% participant with De Beers Canada in the Gahcho Kué JV
located at Kennady Lake in Canada'sNorthwest Territories. The Gahcho Kué
Project consists of a cluster of four diamondiferous kimberlites, three of
which have a probable mineral reserve of 31.3 million tonnes grading 1.57
carats per tonne for total diamond content of 49 million carats. A December
2010 feasibility study filed by Mountain Province (available on SEDAR)
indicates that the Gahcho Kué project has an IRR of 33.9%.

Background & Quotes

The proposed Gahcho Kué diamond mine is located at Kennady Lake, 280 km
northeast of Yellowknife, is a $650 million investment (2010 dollars), which
will result in important benefits to the NWT:

  *Two years of construction and 11 year life of mine
  *4.5 million carats recovered on average annually
  *372 jobs during operations and up to 690 FTE jobs during construction
  *New business opportunities for Northern and Aboriginal business
  *$3.9 billion dollar GDP impact to Canada, of which more than 80% will be
    in the Northwest Territories

Quotes on the record from the Environmental Impact Review public hearings in

  *In his remarks to the Panel, Northwest Territories Premier Bob McLeod
    said: "The Gahcho Kué Project is important to the long-term strategic
    interests of the  Northwest Territories , to the continued strength of
    our economy and the wellbeing of our people and communities."
  *North Slave Metis Alliance President Bill Enge :  "…the North Slave Métis
     Alliance  supports sustainable development, not unfettered exploitation
    of their lands. And this, I'm happy to say, appears to be the situation
    here where De Beers is putting in place a sustainable mining method that
    we can support."
  *Stephen Ellis, Special Advisor to the Treaty 8 Tribal Corporation, on a
    proposal to establish Ni Hadi Yati, a collaborative monitoring forum for
    the Gahcho Kué Project between De Beers, the Yellowknives Dene First
    Nation, Lutsel K'e Dene First Nation, Deninu K'ue First Nation and the
    Tlicho Government: "We're hoping that what we're proposing will lead to
    better environmental performance of the project because the First Nations
    will be able to engage in a meaningful manner and influence the
    environmental performance and the environmental design."

SOURCE: Mountain Province Diamonds Inc.

For further information:

Cathie Bolstad Director, External & Corporate Affairs De Beers Phone:

Patrick Evans President & CEO Mountain Province Diamonds Phone:
Press spacebar to pause and continue. Press esc to stop.