De Beers Reports On Mountain Province Mining's Diamond Pipes.

Business Editors

ONTARIO, Calif.--(BUSINESS WIRE)--Aug. 14, 2000

Mountain Province Mining Inc. (NASDAQ:MPVI TSE:MPV), is pleased to announce that it has received from its joint venture partner, Monopros Limited, a wholly-owned subsidiary of De Beers Consolidated Mines Limited (De Beers) (NASDAQ:DBRSY), the results of the recently completed desktop study. This study shows that the modeled rate of return for the mining of the three main diamond pipes is below the agreed upon rate of return needed to proceed to the next phase, but sufficiently close to require only an increase in diamond revenues of approximately 15% to achieve the agreed upon rate.

Under the terms of the agreement between Mountain Province and Monopros, a management committee will now be constituted to consider various options for taking this project forward. One of these options is to carry out more bulk sampling this winter in order to obtain both more diamonds and diamonds from parts of the pipes not sampled in 1999. The larger number of diamonds will increase the confidence of the revenue modeling, and may impact positively on the overall revenue-per-carat estimate. Currently, the summer exploration program is continuing on the property outside of the Kennady Lake cluster of pipes, with the objective of adding to the existing resource. The Kennady Lake cluster of pipes is located on Mountain Province Mining's AK claims located in the Northwest Territories of Canada.

Following the release of the final results of the 1999 bulk sample program on the three main pipes, both Monopros and Mountain Province Mining agreed on March 8, 2000, upon a strategy with two main components to advance the project. First, an aggressive exploration program aimed at adding to the existing resource. Second, a desktop study to evaluate in detail both the cost of conventional open-pit mining as well as a preliminary evaluation of underground mining and other more unconventional alternatives. Further, Monopros agreed to carry all exploration, development and other project costs from March 8, 2000, onwards. In return, on completion of the desktop study the company has agreed that Monopros will be deemed to have earned a 51% interest in the property. A project team based in Johannesburg, South Africa, was dedicated by De Beers to the desktop study and, in conjunction with Canadian consultants, produced a detailed study and report which was formally presented to the company's board of directors on August 4, 2000.

The study team initially analyzed the costs arising from the conventional open-pit mining of two of the diamond pipes (5034 and Hearne) and of the high-grade zone within the top 140 meters of a third pipe (Tuzo). A computer model of the open pits was created and options considered aimed at minimizing capital and operating costs while optimizing mining rates and plant throughput (tonnes per day). The team then looked at the costs involved with the underground mining of the three pipes. A computer model was again created and optimization exercises carried out, as was done with the open-pit scenarios. The open-pit-mining scenario came out with a higher rate of return than the underground mining option. The actual estimated costs and modeled rates of return are not given since the desktop study is still only a preliminary study with relatively large uncertainties in a number of the estimates and assumptions.

In the desktop study, De Beers also looked at several alternative and innovative mining techniques. Two possibilities have been identified and will be investigated further.

Jan W. Vandersande, Ph.D., president and CEO of Mountain Province Mining, said, "The company is impressed with the scope and detail of the desktop study completed by De Beers. Excluding the impact of additional discoveries, it is now known that an increase in diamond values of approximately 15% is needed to proceed to the next phase, which is a feasibility study. Any additional kimberlite discoveries could, however, change the economics of the project and, if of sufficient value, positively impact the modeled rate of return."

Mr. Richard Molyneux, president and C.E.O. of De Beers Canada, stated: "Although our first preference would have been to see the agreed rate of return being achieved, which would have allowed moving ahead to the next phase now, the fact that we are within an achievable range of this target is encouraging. The desktop study has given us a far better understanding of where we are now and what needs to be done. We remain fully committed to this project."

With the completion of the desktop study, Monopros has now earned a 51% interest in the property, Mountain Province Mining accordingly holds a 44.1% interest and Camphor Ventures a 4.9% interest. Monopros has committed to a minimum expenditure of C$3 million over the period March 8, 2000, to December 31, 2001, on exploration and related sampling. In addition, Monopros will update the desktop study on a regular basis in response to changes in parameters such as mineral resources or diamond prices where such changes are significant in terms of impact on the internal rate of return (IRR). The study will be updated at a minimum of once a year. Once the desktop study shows that an IRR of 15% can be achieved, Monopros must proceed with a feasibility study. If they do not proceed, they will be diluted down to a 30% interest in the property. The management committee, consisting of members from the company and Monopros, will now be constituted and options will be considered as to how to best enhance the project economics. One very likely option is to carry out more bulk sampling this winter, in addition to the ongoing exploration.

Mountain Province Mining Inc. is a diamond exploration and development company. The AK and CJ claims, located in the Northwest Territories of Canada, are now held 44.1% by Mountain Province Mining Inc., 4.9% by Camphor Ventures (CDNX:CFV) and 51% by Monopros. As reported in its press release on March 7, 1997, Mountain Province Mining Inc. and its partners have entered into a joint agreement with Monopros (a wholly owned subsidiary of De Beers Consolidated Mines Limited) under which Monopros has the right to earn up to a 60% interest in the AK and CJ properties by taking the project to commercial production.

This 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 of the control of the company.

USA Office: 3633 E. Inland Empire Blvd., Suite 265, Ontario, CA 91764 [phone] CANADA Office: 789 West Pender Street, Suite 1205, Vancouver, B.C. V6C 1H2 [phone] Web Site: www.mountainprovince.com E-mail: [e-mail]