Mr. Patrick Evans reports

MOUNTAIN PROVINCE DIAMONDS ANNOUNCES PROPOSED SPIN-OUT OF KENNADY DIAMONDS

Mountain Province Diamonds Inc.'s board of directors has approved a proposal to spin-out the Company's 100-per-cent-controlled Kennady North diamond project into a newly incorporated company, Kennady Diamonds Inc. Patrick Evans, President and CEO, commented: "The proposed spin-out of Kennady North is intended to deliver greater value to Mountain Province shareholders by unlocking the value of this highly prospective diamond project. The transaction will also enable Mountain Province to focus on its flagship Gahcho KuAcopyright Project while Kennady Diamonds focuses on advancing the 123 square-kilometer Kennady North Project."

The proposed spin-out will occur through a plan of arrangement (the "Arrangement") and will be subject to regulatory and court approval, as well as shareholder approval at a special meeting currently planned for April, 2012