Mountain Province Diamonds Announces US$33.0 million Term Loan

9 June 2021

Mountain Province Diamonds Inc. ("Mountain Province" or the "Company") (TSX: MPVD) (OTCQX: MPVD) today announces that it has amended and restated its credit agreement (the "Transaction") with Dunebridge Worldwide Ltd. ("Dunebridge"), as lender, adding a US$33.0 million term loan facility (the "Term Facility") to its existing US$25.0 million revolving credit facility (the "Revolving Facility").

The Term Facility bears interest at a fixed rate of 10.0% per annum, payable monthly. In addition, a flat 5.0% fee is payable on each advance made thereunder. The Term Facility will reduce in size to US$22.0 million on July 15, 2021 and mature on December 31, 2021. The Term Facility is available in two advances: a US$23.0 million advance on May 17, 2021 and a US$10.0 million advance on June 11, 2021.

Dunebridge is controlled by Dermot Desmond, an insider and related party of Mountain Province. Mr. Desmond owns approximately 32% of the Company's stock. The Transaction therefore constitutes a "related party transaction" within the meaning of MI 61-101. Mountain Province relied on an exemption from the minority approval requirements of MI 61-101 contained in Section 5.7(e) on the basis of financial hardship.  The terms of the Transaction were unanimously approved by the Independent Directors.  Mountain Province was not in a position to file a material change report 21 days prior to closing because the terms of the Transaction and insider participation were not yet established by that time, and Mountain Province elected to expedite closing of the Transaction for sound business reasons.

In connection with this transaction, the Company was advised by its financial advisor Lazard Canada.  Bennett Jones LLP acted as counsel to the Company and Stikeman Elliott LLP acted as counsel to the Independent Directors.