Mountain Province Diamonds Announces CAD$33 Million Working Capital Facility

14 May 2025

TORONTO and NEW YORK, May 14, 2025 /CNW/ - Mountain Province Diamonds Inc. ("Mountain Province" or the "Company") (TSX: MPVD) (OTC: MPVD) announces today that it has entered into an amended and restated bridge credit facility agreement (the "A&R Bridge Facility Agreement") to provide for the Company's previously announced CAD$33 million working capital credit facility (the "WCF") with Dunebridge Worldwide Ltd., ("Dunebridge") as administrative agent, security trustee and lender. The A&R Bridge Facility Agreement amends and restates the Company's existing bridge credit facility agreement with Dunebridge dated February 24, 2025.

The terms of the WCF reflect the indicative terms set out in the non-binding term sheet entered into with Dunebridge on April 17, 2025 as described in the Company's notice of meeting and management information circular dated April 17, 2025 (the "Notice of Meeting and Information Circular") and in the Company's news release dated April 25, 2025, which are both available on SEDAR+ on the Company's profile at www.sedarplus.ca and on the Company's website at www.mountainprovince.com.

As also disclosed in the Company's news release of February 19, 2025, the WCF is a key component of the Company's funding solution for 2025.  However, as described in detail in the Company's Notice of Meeting and Information Circular, the terms of the WCF were not settled until April 17, 2025 and as such did not form part of the suite of refinancing transactions announced and completed on February 24, 2025 and March 18, 2025, respectively, making it subject to the shareholder approval described herein.

Initial Draw Down

Due to immediate working capital needs, the Company issued a funding request under the WCF to Dunebridge for an initial draw down of USD7,000,000 (the "Initial Draw Down").

MI 61-101 Reliance on Exemption for Financial Difficulty in Respect of Initial Draw Down

Dunebridge is a "related party" of the Company, for the purposes of MI 61-101 and the entering into of the A&R Bridge Facility Agreement is considered a related party transaction for the purposes of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Initial Draw Down is being completed pursuant to an exemption from the minority shareholder approval requirements applicable to a related party transaction under section 5.7(1)(e) of MI 61-101 on the grounds that the Company is in serious financial difficulty, and that the board of directors of the Company, acting in good faith, and all of the Company's independent directors, acting in good faith, have determined that entering into the A&R Bridge Facility Agreement, generally, and the Initial Draw Down, in particular, is reasonable given the financial difficulties that the Company is facing (the "MI 61-101 Exemption").

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