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, Dec. 11, 2012

YELLOWKNIFE, Dec. 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  Yellowknife 
between 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's  Northwest  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 
regions".

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 
www.debeersgroup.com.

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's  Northwest 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 
Yellowknife:

  *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.

Contact:

Cathie Bolstad
Director, External & Corporate Affairs
De Beers
Phone: (867) 766-7325

Patrick Evans
President & CEO
Mountain Province Diamonds
Phone: (416) 361-3562
 
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