sign Impact Benefit Agreement

.

cnw






YELLOWKNIFE, TORONTO and NEW YORK, July 10, 2013 /CNW/ - De Beers and
Mountain Province Diamonds (TSX: MPV, NYSE MKT: MDM) are pleased to
announce that De Beers, as Operator of the Gahcho Kue Project, has
entered into an Impact Benefit Agreement with the North Slave Metis
Alliance for the proposed Gahcho Kue Mine. The agreement sets in place
a framework for De Beers and the North Slave Metis Alliance to optimize
the participation of the North Slave Metis Alliance in the Gahcho Kue
Mine through employment, business opportunities, training and
development, and financial benefits.




"This is the first Impact Benefit Agreement to be concluded for the
proposed Gahcho Kue Mine," said Glen Koropchuk, Chief Operating
Officer. "The two negotiating teams worked hard and efficiently to
complete this agreement, which is mutually beneficial and builds on the
strong relationship already established. It incorporates the shared
learning we have from our experience working together over the years at
the Snap Lake Mine, which is also operated by De Beers. The negotiation
of further impact benefit agreements is continuing."




"This is a good day for the North Slave Metis Alliance," said Bill Enge,
President. "The life of mine Impact Benefit Agreement that we signed
with De Beers for the proposed Gahcho Kue diamond mine ensures the
North Slave Metis people will benefit from this development. We're
looking forward to working with and strengthening our relationship with
De Beers. They have a great track record of working with us with
respect to their Snap Lake diamond mine and we have every reason to
believe their Gahcho Kue mine track record will be matched."




The Gahcho Kue diamond mine will have a mine life of approximately
eleven years, will employ up to 700 people during construction and
approximately 400 people during operations. It will produce on average
4.5 million carats annually over its mine life.




About De Beers Group


De Beers Group is a member of the Anglo American plc group. Established
in 1888, De Beers is the world's leading diamond company with
unrivalled expertise in the exploration, mining and marketing of
diamonds. Together with its joint venture partners, De Beers employs
approximately 16,000 people across the diamond pipeline, and is the
world's largest diamond producer by value, with mining operations in
Botswana, Canada, Namibia and South Africa. In Canada, De Beers
operates the Snap Lake Mine in the Northwest Territories and the Victor
Mine in northern Ontario. De Beers is also a joint venture partner in
the Gahcho Kue Project in the Northwest Territories.


About Mountain Province Diamonds


Mountain Province Diamonds discovered the first kimberlite at Kennady
Lake in 1995 and in 1997 entered into a joint venture agreement with
Monopros, a subsidiary of De Beers. Mountain Province is a 49%
participant with De Beers Canada in the Gahcho Kue JV located in
Canada's Northwest Territories. Gahcho Kue is the world's largest and
richest new diamond mine development. A December 2010 feasibility study
filed by Mountain Province (available on SEDAR) indicates that the
Gahcho Kue project has an IRR of 33.9%.




Forward-Looking Statements




This news release may contain forward-looking statements, within the
meaning of the "safe-harbor" provision of the Private Securities
Litigation Reform Act of 1995, regarding Mountain Province's business.
Actual results could differ materially from those described in this
news release as a result of numerous factors, some of which are outside
the control of the Company.



SOURCE: De Beers Canada Corporation



For further information:



Cathie Bolstad Director, External & Corporate Affairs De Beers Canada

Tel: (867) 766-7300

Patrick Evans President and CEO Mountain Province Diamonds

Tel: (416) 361-3563

Bill Enge President North Slave Metis Alliance

Tel: (867) 873-6762