Mountain Province Diamonds Announces First Quarter Financial Results for 2025

TSX and OTC: MPVD

TORONTO, May 13, 2025– Mountain Province Diamonds Inc. (“Mountain Province”, the “Company”) (TSX: MPVD) & (OTC: MPVD) today announces financial results for the first quarter ended March 31, 2025 (“the Quarter” or “Q1 2025”) from the Gahcho Kué Diamond Mine (“GK Mine”). All figures are expressed in Canadian dollars unless otherwise noted.

Financial Highlights for Q1 2025

• 426,000 carats sold, with total proceeds of $44.0 million (US$30.7 million) at an average realised value of $103 per carat (US$72).
• Adjusted EBITDA¹ of $6.1 million.
• Loss from mine operations of $22.4 million.
• Net loss of $34.4 million or $0.16 basic and diluted loss per share.

¹Cash costs of production, including capitalized stripping costs, and adjusted EBITDA are non-IFRS measures with no standardized meaning prescribed under IFRS.  See “Reconciliation of non-IFRS measures” at the end of the news release for explanation and reconciliation.

Operational Highlights for Q1 2025
(all figures reported on a 100% basis unless otherwise stated)

• 925,773 ore tonnes treated, a 15% increase relative to Q1 2024, (Q1 2024: 805,557 tonnes treated;)
• 762,978 carats recovered, 40% lower than Q1 2024 (Q1 2024: 1,264,887 carats)
• Average grade of 0.82 carats per tonne, a 48% decrease relative to Q1 2024 (Q1 2024: 1.57 carats per tonne)
• Cost per carat recovered, including capitalized stripping of $192/carat, and cost per tonne processed, including capitalized stripping of $158/tonne.

Sales Highlights for Q1 2025

As previously released, during Q1 2025, 426,000 carats were sold for total proceeds of $44.0 million (US$30.7 million), resulting in an average value of $103 per carat (US$72 per carat). These results compare to Q1 2024 when 938,000 carats were sold for total proceeds of $89.4 million (US$66.1 million), resulting in an average price of $95 per carat (US$70 per carat).

Mark Wall, the Company’s President, and Chief Executive Officer, commented:

“The diamond market remained depressed in Q1 2025, and this was a real challenge from a cashflow perspective.  On the mine operations side we executed another successful ice-road resupply season safely and on plan.  Safety at the operations remained a key focus area, with the Total Recordable Injury Frequency Rate (TRIFR) finishing at 2.14, which was a material improvement on the TRIFR of 6.37 for Q1 2024.

The processing plant continued to perform very well, with total tonnes treated in Q1 2025 improving by 15% compared to Q1 2024.  On the negative, the grade for Q1 2025 was 48% lower than Q1 2024.  The grade reduction was expected while lower grade stockpiles were treated during the period that we are stripping down to the higher grade NEX orebody, although the grade reduction experienced in the stockpile was greater than anticipated.  Confidence remains in the overall grade of the stockpile, but at around 3 million tonnes there are pockets of higher and lower grade that will be experienced.  We have begun treating areas of higher grade although the minerology of the ore will reduce the tonnes able to be treated by the processing facility.

On the all-important mining side, the total tonnes mined increased by 28% in Q1 2025 when compared to Q1 2024.  The significant increase in mining rate is the result of a sustained focus on drill and blast efficiency, people efficiency, maintenance efficiency and short-term planning efforts.  At this time, I anticipate earlier access to the high grade NEX ore than was originally anticipated in the plan, which will help us later in the year.

I am optimistic that the turbulence in the global markets will stabilize as we move through 2025 and the diamond market will recover.

As previously announced, during Q1 2025, we saw the closing of the Refinancing Transactions , which served to address the reclamation liabilities owed to De Beers as operator of the GK Mine, provide an immediate injection of capital to address the 2025 near cash flow deficit faced by the Company, and extend the term of the Second Lien Notes to December 2027, which were due to mature in December 2025. Furthermore, we recently announced that at our AGM to be held on May 16^th, Shareholders will be asked to pass an ordinary resolution approving a new working capital facility from Dunebridge Worldwide Ltd., a related party of the Company, in the amount of CAD33,000,000, or the USD equivalent amount. In respect of these transactions for which we have received much appreciated support from De Beers and our financing partners, I would like to recognize the stalwart support of our largest shareholder and debt holder, Mr. Dermot Desmond. ”

Gahcho Kué Mine Operations

The following table summarizes key operating statistics for the Gahcho Kué Mine in Q1 2025, and Q1 2024.

Financial Performance

Conference Call

The Company will host its quarterly conference call on Wednesday May 14^th, 2025, at 11:00am ET.

Title: Mountain Province Diamonds Inc Q1 2025 Earnings Conference Call

Conference ID: 19522
Date of call: 05/14/2025
Time of call: 11:00 Eastern Time
Expected Duration: 60 minutes

Webcast Link:
https://app.webinar.net/pKjva5r9zNm
Participant Toll-Free Dial-In Number:             (+1) 888-699-1199
Participant International Dial-In Number:       (+1) 416-945-7677

A replay of the webcast and audio call will be available on the Company’s website.

Reconciliation of Non-IFRS measures

This news release refers to the terms “Cash costs of production per tonne of ore processed” and “Cash costs of production per carat recovered”, both including and net of capitalized stripping costs and “Adjusted Earnings Before Interest, Taxes Depreciation and Amortization (Adjusted EBITDA)” and “Adjusted EBITDA Margin”. Each of these is a non-IFRS performance measure and is referenced in order to provide investors with information about the measures used by management to monitor performance. These measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. They do not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers.

Cash costs of production per tonne of ore processed and cash costs of production per carat recovered are used by management to analyze the actual cash costs associated with processing the ore, and for each recovered carat. Differences from production costs reported within cost of sales are attributed to the amount of production cost included in ore stockpile and rough diamond inventories.

Adjusted EBITDA is used by management to analyze the operational cash flows of the Company, as compared to the net income for accounting purposes. It is also a measure which is defined in the Notes documents. Adjusted EBITDA margin is used by management to analyze the operational margin % on cash flows of the Company.

The following table provides a reconciliation of the Adjusted EBITDA and Adjusted EBITDA margin with the net income on the condensed consolidated interim statements of comprehensive (loss) income:

The following table provides a reconciliation of the cash costs of production per tonne of ore processed and per carat recovered and the production costs reported within cost of sales on the condensed consolidated interim statements of comprehensive (loss) income:

About Mountain Province Diamonds Inc.

Mountain Province Diamonds is a 49% participant with De Beers Canada in the Gahcho Kué diamond mine located in Canada’s Northwest Territories. The Gahcho Kué Joint Venture property consists of several kimberlites that are actively being mined, developed, and explored for future development. The Company also controls more than 113,000 hectares of highly prospective mineral claims and leases surrounding the Gahcho Kué Mine that include an Indicated mineral resource for the Kelvin kimberlite and Inferred mineral resources for the Faraday kimberlites. Kelvin is estimated to contain 13.62 million carats (Mct) in 8.50 million tonnes (Mt) at a grade of 1.60 carats/tonne and value of US$63/carat, at February 2019. Faraday 2 is estimated to contain 5.45Mct in 2.07Mt at a grade of 2.63 carats/tonne and value of US$140/ct, at February 2019. Faraday 1-3 is estimated to contain 1.90Mct in 1.87Mt at a grade of 1.04 carats/tonne and value of US$75/carat, at February 2019. All resource estimations are based on a 1mm diamond size bottom cut-off.

Qualified Person

The disclosure in this news release of scientific and technical information regarding Mountain Province’s mineral properties has been reviewed and approved by Tom McCandless, Ph.D., P.Geo, and Mr. Tysen Hantelmann, P.Eng., independent advisors to the Company and Qualified Persons as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects.

NT4