CORPORATE PRESENTATION - FEBRUARY 2019 - Mountain Province ...
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CORPORATE PRESENTATION FEBRUARY 2019
TSX: MPVD | NASDAQ: MPVD
FORWARD LOOKING STATEMENT
Cautionary Statement Regarding Forward Looking Information
Cautionary Statement: This presentation contains certain “forward-looking statements” and “forward-looking information” under applicable Canadian and United States securities laws concerning the business,
operations and financial performance and condition of Mountain Province Diamonds Inc. (“Mountain Province”). Forward-looking statements and forward-looking information include, but are not limited to,
statements with respect to estimated production and mine life of the project of Mountain Province; the realization of mineral reserve estimates; the timing and amount of estimated future production; costs of
production; the future price of diamonds; the estimation of mineral reserves and resources; the ability manage debt; capital expenditures; the ability to obtain permits for operations; liquidity; tax rates; and currency
exchange rate fluctuations. Except for statements of historical fact relating to Mountain Province, certain information contained herein constitutes forward-looking statements. Forward-looking statements are
frequently characterized by words such as “anticipates,” “may,” “can,” “plans,” “believes,” “estimates,” “expects,” “projects,” “targets,” “intends,” “likely,” “will,” “should,” “to be”, “potential” and other similar words,
or statements that certain events or conditions “may”, “should” or “will” occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are
based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking
statements. Many of these assumptions are based on factors and events that are not within the control of Mountain Province and there is no assurance they will prove to be correct.
Factors that could cause actual results to vary materially from results anticipated by such forward-looking statements include variations in ore grade or recovery rates, changes in market conditions, changes in project
parameters, mine sequencing; production rates; cash flow; risks relating to the availability and timeliness of permitting and governmental approvals; supply of, and demand for, diamonds; fluctuating commodity
prices and currency exchange rates, the possibility of project cost overruns or unanticipated costs and expenses, labour disputes and other risks of the mining industry, failure of plant, equipment or processes to
operate as anticipated.
These factors are discussed in greater detail in Mountain Province's most recent Annual Information Form and in the most recent MD&A filed on SEDAR, which also provide additional general assumptions in
connection with these statements. Mountain Province cautions that the foregoing list of important factors is not exhaustive. Readers who base themselves on forward-looking statements should carefully consider the
above factors as well as the uncertainties they represent and the risk they entail. Mountain Province believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can
be given that these expectations will prove to be correct and such forward-looking statements included in this presentation should not be unduly relied upon. These statements speak only as of the date of this
presentation.
Although Mountain Province has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other
factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements. Mountain Province undertakes no obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change
except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements. Statements concerning mineral reserve and resource estimates may also be
deemed to constitute forward-looking statements to the extent they involve estimates of the mineralization that will be encountered as the property is developed. Comparative market information is as of a date prior
to the date of this document.
Further, Mountain Province may make changes to its business plans that could affect its results. The principal assets of Mountain Province are administered pursuant to a joint venture under which Mountain Province
is not the operator. Mountain Province is exposed to actions taken or omissions made by the operator within its prerogative and/or determinations made by the joint venture under its terms. Such actions or
omissions may impact the future performance of Mountain Province. Under its current note and revolving credit facilities Mountain Province is subject to certain limitations on its ability to pay dividends on common
stock. The declaration of dividends is at the discretion of Mountain Province’s Board of Directors, subject to the limitations under the Company’s debt facilities, and will depend on Mountain Province’s financial
results, cash requirements, future prospects, and other factors deemed relevant by the Board.
2
MOUNTAIN PROVINCE DIAMONDS
TSX: MPVD | NASDAQ: MPVD
ABOUT THE COMPANY
Mountain Province is a Canadian company listed on the TSX and
NASDAQ with approximately C$220m market capitalization.
The Company’s primary asset is its 49% interest in the Gahcho Kué
Diamond Mine, a JV with De Beers Canada (51%), who also act as the
operator, located 300km northeast of Yellowknife in North West
Territories of Canada.
GAHCHO KUÉ
Mountain Province also holds 100% of Kennady Diamonds, an
advanced diamond exploration project immediately adjacent to, and CANADA
surrounding, the Gahcho Kué site, with 3 identified kimberlites with
approximately 18.5M carats of diamonds in all resource categories. VICTOR
Flagship Asset: Gahcho Kué Mine Joint Venture Kennady North Projects and Greenfield Exploration
• Open Pit Operation, comprised of 3 Kimberlite Pipes; 5034, South West • The Kennady North Project is located 280 kilometers east-northeast of
Corridor, Hearne, and Tuzo Yellowknife, NT in the District of Mackenzie. The Kennady North project
• C$1.1bn of construction and development capital to achieve commercial
consists of 16 mineral leases and 58 mineral claims totaling 61,000
production (100% basis), completed on time and on budget hectares.
• These properties were acquired by MPV in early 2018 as part of the
• Located at Kennady Lake, c. 280km northeast of Yellowknife
Kennady Diamonds Inc. transaction
• Mine opened in September 2016 and commercial production was declared in
• Kelvin & Faraday Kimberlite Pipes with over 18 million carats of diamonds
March 2017
in all resource categories
• Initial mine plan extends to FY 2030, recovering c. 56Mcts of diamonds (100%
• Highly prospective land package within 20 km radius of the GK Plant with
basis)
numerous potential targets for kimberlites
• Highly prospective land package within the JV land package and potential to
find additional kimberlites near existing plant
3
MOUNTAIN PROVINCE DIAMONDS
TSX: MPVD | NASDAQ: MPVD
2019 FULL YEAR GUIDANCE
2018 FULL YEAR 2019 FULL YEAR
ACTUAL GUIDANCE
Total Tonnes ‘000s 41,444 45,189
(ore & waste on100% basis)
Tonnes Treated ‘000s 3,194 3,100 – 3,200
(100% basis)
Grade (cts/t) 2.17 2.13
Total Cts ‘000s 6,937 6,600 – 6,900
(100% basis)
MPV Cts ‘000s 3,399 3,300 – 3,450
(49% basis)
4
MOUNTAIN PROVINCE DIAMONDS
TSX: MPVD | NASDAQ: MPVD
LIFE OF MINE PLAN – BY ZONE
5034 PIPE SOUTH WEST CORRIDOR HEARNE PIPE TUZO PIPE
Vertical
Profile
• The first kimberlite discovered at Gahcho Kué and • SWC is the extension of the 5034 • Hearne South is a roughly circular • Three zones heading to a
main ore body Pipe towards Hearne pipe abundant with Tuffisitic depth of 300m
Kimberlite Breccia
• Abundant hypabyssal kimberlite • Drilling completed on this zone has • Potential to further
confirmed kimberlite which would • Hearne North is a narrow elongate develop Tuzo Deep to
• Subdivided on the basis of internal geology into four
have originally mined as waste in the pipe abundant with Hypabyssal extend the mine life
Description lobes
original mine plan Kimberlite and Tuffisitic Kimberlite
• Extensions of kimberlite confirmed to the northeast and Breccia
southwest not yet included in the mine plan
• Recent drilling confirms kimberlite
between the two pipes
• Mining commenced in Q2 2018
Grade
1.91 1.41 1.99 1.22
NI 43-101 (1)
(cpt)
Prodution
(Mct)
18.4 2.2 10.9 19.1
Life of
mine
CURRENT LIFE OF MINE EXTENDS TO 2030
5
MOUNTAIN PROVINCE DIAMONDS
TSX: MPVD | NASDAQ: MPVD
GK MINE PLAN EXTENSION – SOUTH WEST CORRIDOR
18 DH Completed
3,489 meters
6 DH Completed
1,946 meters 15 DH Completed
3,048 meters
6
MOUNTAIN PROVINCE DIAMONDS
TSX: MPVD | NASDAQ: MPVD
MINE OPTIMIZATION OPPORTUNITIES
• Drilling confirms the 5034 Northeast Extension (NEX) to the North Pipe and beyond to the northeast
• NEX thickness ranges from ~7 to 72m
• NEX extent is untested to the northeast and at depth
Significant true thickness intersection
results:
• MPV-18-469C = 72.5m
• MPV-18-481C = 61.7m
• MPV-18-475C = 59.0m
• Fifteen drill holes to determine tonnage and
grade are completed.
• Three holes underway to determine depth
extent (red boxes)
Next Steps
• Further drilling to the northeast to confirm
continuity with Tuzo (indicated by arrows)
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MOUNTAIN PROVINCE DIAMONDS
TSX: MPVD | NASDAQ: MPVD
KENNADY NORTH PROJECTS – KELVIN & FARADAY
• Kennady acquisition completed in April 2018 through all-share transaction
• Kennady adds 13.62 million carats of indicated resources with the Kelvin kimberlite (8.50 million tonnes at 1.60cpt) and 5.02
million carats of inferred resources with the Faraday kimberlites (3.27 million tonnes at 1.54 cpt)1
• Strong expectations for substantial further resource addition with new kimberlite discoveries in the Kelvin-Faraday corridor
• Recently-completed microdiamond results for Faraday 2 north extension will greatly increase the inferred resource
• Memorandum of Understanding with De Beers outlines framework for potentially incorporating Kennady Project into Gahcho
Kué joint venture
• The Kelvin-Faraday Corridor “KFC” is a
NE-SW structural feature that includes
the Faraday and Kelvin kimberlites, and
Significant Gahcho Kué the Gahcho Kué Mine
enhancement opportunity through • Kennady Project consists of 22 mining
resources of recently acquired leases and 58 mineral claims totaling
Kennady Project 67,164 ha., located adjacent to and
surrounding Gahcho Kué
• Five kimberlite bodies to date with three
having resources (Kelvin, Faraday 1-3,
Faraday 2)
1. See Technical Report filed on SEDAR by Kennady Diamonds Inc. titled “2017 Technical Report – Project Exploration Update and Faraday Inferred Mineral Resource Estimate – Kennady
North Project – Northwest Territories, Canada”, with an effective date of November 16, 2017.
8
MOUNTAIN PROVINCE DIAMOND
TSX: MPVD | NASDAQ: MPVD
DIAMOND INDUSTRY FUNDAMENTALS
Long Term Diamond Jewelry Market Projections 20 Year Global Rough Diamond Production Forecast (2004 – 2023)
IN BILLIONS USD
645
340
271
173
108
110
87
52
40
2018 2023 2035
Total Jewelry Market Diamond Jewelry Market Fashion Jewelry Market
• Demand for Jewelry and diamonds is expected to nearly double in the next 15 years. (Chart on the left)
• Production of rough diamonds is expected to remain the same or decline over the next 3-5 years
Source: Paul Zimniskly, paulzimniskly.com
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MOUNTAIN PROVINCE DIAMONDS
TSX: MPVD | NASDAQ: MPVD
ROUGH DIAMOND PRICE INDEX
August 2014
Valuation
-20%
• Impact on rough diamond market exacerbated by reduced credit availability to
middle market for inventory finance
• General rough diamond market, particularly for Indian goods, has been weighed
down through 2017 by excess polished inventories and financial weaknesses
within the Indian cutting and polishing sector
• Current signs of turn-around with strong holiday season results in retail jewelry
sector, including solid year-on-year growth reported by major retail chains in Asian
markets
1 Rough diamond price index sourced from RoughPrices.com Index at January 2004 100.00. Last updated Jan 19, 2018
10
MOUNTAIN PROVINCE DIAMONDSTSX: MPVD | NASDAQ: MPVD
UPDATE ON LAB-CREATED DIAMONDS
De Beers Group enters the Lab Grown consumer market Total Diamond market forecast to 20351
• De Beers Group surprised the industry back in May by entering the Lab Grown Diamond (LGD) sector.
• De Beers Group was clear that they entered the market because they saw an opportunity that’s been missed by existing LGD producers to
provide LGDs in fashion jewelry. 8.65
• Their research on the sector showed that consumers see LGDs as ‘fun, fashion accessories’ that are for more casual occasions and their
pricing should reflect this.
• Unbeknownst to many, De Beers Group has been producing lab grown diamonds for more than 50 years through their Element Six
business unit, a world leading producer of LGDs, which one would believe should make them an instant competitor in the consumer space.
Consumer market 3.24
• Lab Grown Diamond demand by consumers is very small, but growing, compared to the global demand for natural diamonds.
1.74
• The current global demand of LGDs is roughly 3% of the total diamond jewelry market.
173
• Consumer research has shown that LGDs are not what people want for celebrating life’s great moments (engagements, anniversaries, birth
of a child etc.) – those are occasions where only a natural diamond will do.
Mass production 108
87
• Consumers shouldn’t have to pay diamond prices for laboratory-grown products. Given the relatively low cost of production, the fact that
they are mass-produced (meaning they are neither unique nor finite), prices should be reflective of their value and of consumer expectations
for what they should cost.
• Like any product created through a technological process, the price of LGDs will inevitably fall as technology continues to improve.
Core Priorities 2018 2023 2035
• For comparison: De Beers Group is investing $100M in their Lightbox Jewelry project.
Diamond Jewelry Market Lab-created diamond % of Market
• Over the next 5-6 years, De Beers Group is investing more than $10B in their natural diamond business.
(1) Source: Paul Zimnisky – paulzimnisky.com
11
MOUNTAIN PROVINCE DIAMONDSTSX: MPVD | NASDAQ: MPVD
GK MINE PRODUCTION PROFILE BY SIZE
2018 Sales Data by Volume % 2018 Sales Data by $USD Value
> 2.5 carat 1 - 2.5 carat < 1 carat > 2.5 carat 1 - 2.5 carat < 1 carat
4%
7%
31%
53%
17%
88%
12
MOUNTAIN PROVINCE DIAMONDSMEDIUM TO LONG TERM STRATEGY
TSX: MPVD | NASDAQ: MPVD
OPERATIONS
• Continuous optimization at the GK Mine and Plant
• Explore and develop Kimberlites within the GK Mine JV
GROWTH
• Exploration upside within the GK Joint Venture
• Incorporating the Kelvin/Faraday resources into the GK Mine JV
• Exploration of greenfield targets within 20km radius of the GK mine (fully owned by
MPV)
• Source based branding opportunities for Canadian Diamonds
BALANCE SHEET
• Continuous debt reduction
• Capital structure discipline
13
MOUNTAIN PROVINCE DIAMONDSTSX: MPVD | NASDAQ: MPVD
INVESTMENT THESIS
1. Top-tier, long life asset with globally significant scale
2. Leading industry margins driven by high grade ore and low operating costs
3. Mine located in a highly favorable jurisdiction
4. Beneficial Joint Venture agreement that maintains equal partner rights (1)
5. Independent sales and marketing rights
6. Attractive free cash flow profile
7. Positioned to benefit from long term attractive natural diamond industry
fundamentals
8. Experienced management team
9. Attractive greenfield exploration portfolio within 20km radius of GK Mine
(1) With respect to material decisions relating to the Gahcho Kué Mine.
14
MOUNTAIN PROVINCE DIAMONDSTSX: MPVD | NASDAQ: MPVD
CORPORATE INFORMATION
CORPORATE OFFICE
161 Bay Street, Suite 1410
Toronto, ON M5J 2S1
Canada
Tel. +1 (416) 361-3562
WWW.MOUNTAINPROVINCE.COM
info@mountainprovince.com
TSX & NASDAQ: MPVD
15
MOUNTAIN PROVINCE DIAMONDSAPPENDICES
TSX: MPVD | NASDAQ: MPVD
16
MOUNTAIN PROVINCE DIAMONDSTSX: MPVD | NASDAQ: MPVD
ASSET LOCATION
Overview Asset Location
• Gahcho Kué is located in Canada’s Northwest Territories (“NWT”)
• The NWT represents a mining friendly, politically stable
jurisdiction; top ranked across multiple factors
• NWT GDP of c. $3.7bn(1); the mining and oil and gas extraction
industry is the largest contributor (c. 25%)
• Situated within a prolific kimberlite camp in close proximity to two
other operating diamond mines (Diavik and Ekati)
• Mountain Province maintains strong relationships with the First
Nations and local communities Kennady Diamonds
Ranking of diamond producing countries per the
Economist Intelligence Unit
Country Sovereign Currency Banking Political Economic
Country risk risk risk sector risk risk structure risk
Canada AA AA A AA AAA A
Australia A A A A AA BBB
Botswana A A A BBB A BB
India BB BBB BBB BB BBB BB
Russia BB BB BB B CCC BB
South Africa BB BB BB BB BBB B
Tanzania BB BB BB B B B (1) Per NWT Bureau of
Angola CCC CCC CCC CC CCC CC Statistics.
(2) Composite index that
Sierra Leone CCC CCC B CCC CCC CC
combines both the Policy
Perception Index and results
from the Best Practices Mineral
Fraser Institute’s Investment Attractiveness Index(2) ranks Potential Index.
Canada amongst the best jurisdictions in the world
17
MOUNTAIN PROVINCE DIAMONDSTSX: MPVD | NASDAQ: MPVD
GK MINE SITE PLAN AND INFRASTRUCTURE
5
4
1
3 2
6
7
8
1 Accommodation 4 Fuel storage 7 5034 pipe
2 Processing plant 5 Coarse processed kimberlite pile 8 Hearne pipe
3 Maintenance centre 6 Tuzo pipe
18
MOUNTAIN PROVINCE DIAMONDSFINANCIAL POSITION & CAPITAL STRUCTURE
TSX: MPVD | NASDAQ: MPVD
Financial position (CDN) at September 30th, 2018:
Cash $ 27.9 M
Net working capital $ 92 M
Secured notes payable $ 391.3 M
Shareholders’ equity $ 493.9 M
Current share capital:
Issued and outstanding 210.0 M
Fully diluted 214.0 M
Top 5 Shareholders:
Vertigol Unlimited Company 29.75%
Blackrock 10.5%
Capital Worlds 3.5%
Mackenzie Financial Corp 1.6%
Pictet & Cie, Banquiers 1%
19
MOUNTAIN PROVINCE DIAMONDSMINERAL RESOURCE AND RESERVE SUMMARY
TSX: MPVD | NASDAQ: MPVD
GK MINE JOINT VENTURE – 100% BASIS MPV EXPLORATION PROPERTIES
(EFFECTIVE DATE DEC 31, 2017) (EFFECTIVE DATE DEC 31, 2017)
1.54
1.57 Inferred 5
3.3
Probable 49.4
1.6
31.5 Indicated 13.6
8.5
0 10 20 30 40 50 60 0 5 10 15
Grade (cpt) Carats (Mct) Tonnes (Mt) Grade (cpt) Carats (Mct) Tonnes (Mt)
RESOURCES
(EXCLUSIVE OF RESERVES)
1.4
Inferred 18
12.8
1.42
Indicated 2.6
1.8
0 5 10 15 20
Grade (cpt) Carats (Mct) Tonnes (Mt)
20
MOUNTAIN PROVINCE DIAMONDSTSX: MPVD | NASDAQ: MPVD
MINERAL RESOURCE AND RESERVE SUMMARY
Mineral Reserves and Resources, 100% Basis (Effective Date Dec 31, 2017)
Reserves Classification Tonnes (Mt) Carats (Mct) Grade (cpt)
5034 Probable 9.7 18.4 1.91
Hearne Probable 5.5 10.9 1.99
Tuzo Probable 15.7 19.1 1.22
Subtotal Probable 30.9 48.4 1.57
Stockpile Probable 0.6 1.0 1.61
Total Probable 31.5 49.4 1.57
Resources (Exclusive of
Classification Tonnes (Mt) Carats (Mct) Grade (cpt)
Reserves)
Indicated 0.9 1.5 1.61
5034
Inferred 0.8 1.3 1.63
Indicated 0.2 0.3 1.68
Hearne
Inferred 1.2 2.1 1.75
Indicated 0.8 0.9 1.14
Tuzo
Inferred 10.8 14.6 1.35
Indicated 1.8 2.6 1.42
Summary
Inferred 12.8 18.0 1.40
Indicated 0.0 0.0 0.00
Stockpiles(6)
Inferred 0.0 0.0 1.15
MPV Exploration Properties Kelvin and Faraday (Effective Date Dec 31, 2017)
Resources (Exclusive of
Classification Tonnes (Mt) Carats (Mct) Grade (cpt)
Reserves)
Indicated 8.5 13.6 1.6
Total
Inferred 3.3 5.0 1.54
21
MOUNTAIN PROVINCE DIAMONDS0
1
2
3
4
0.5
1.5
2.5
3.5
4.5
Nov 17
Nov 17
Nov 17
Nov 17
Dec 17
Dec 17
Dec 17
Dec 17
Jan 18
Jan 18
Jan 18
Jan 18
Jan 18
Feb 18
Feb 18
Feb 18
Feb 18
Mar 18
MOUNTAIN PROVINCE DIAMONDS
MPV Diamonds
Mar 18
Mar 18
Mar 18
Apr 18
Apr 18
Apr 18
Stornoway
Apr 18
May 18
May 18
May 18
SHARE PRICE PERFORMANCE VS. PEERS
May 18
Lucara
May 18
Jun 18
Jun 18
Jun 18
Petra
Jun 18
Jul 18
Jul 18
Jul 18
Jul 18
Aug 18
Aug 18
Aug 18
Gem Diamonds
Aug 18
Aug 18
Sep 18
Sep 18
Sep 18
Firestone
Sep 18
Oct 18
Oct 18
Oct 18
Oct 18
Lucapa
Oct 18
Nov 18
Nov 18
Nov 18
Petra
Lucara
Nov 18
Lucapa
Median
Dec 18
Firestone
Company
Stornoway
Dec 18
Dec 18
Gem Diamonds
MPV Diamonds
TSX: MPVD
Dec 18
Jan 19
Jan 19
Jan 19
Jan 19
1 Yr Peformance
-37%
-71%
-22%
-65%
-36%
8%
-37%
-51%
| NASDAQ: MPVD
22TSX: MPVD | NASDAQ: MPVD
2017A COMPARISON TO 2014 TECHNICAL REPORT
Change in attributable price per carat Change in attributed value per tonne
(US$/ct) 1 (C$/t)
1
$39 2 $93
2
$67 $39
$26 $266
$25
$135 $170
$70
February 2014 Market Physical FX Grade Value / tonne
Feasibility prices attributes improvement performance (2017)
February 2014… Market prices Physical product attributes ROM… Study
Rough Diamond Price Index Production Profile
110 GK bulk sample MPV production to date Shipment GK7-17
% Volume % Volume % Volume
100 14% 14%
32%
47% 48% 46%
90 38% 40%
21%
80
Volume 1,719cts Volume 1.86 Mcts Volume 310 kcts
(5034 C/E 3gr to +5) (all sizes) (all sizes)
70 2014 2015 2016 2017 White gem – gem stones of a sawable or makeable shape
4/1/12
5/1/12
6/1/12
7/1/12
8/1/12
9/1/12
1/1/13
2/1/13
3/1/13
4/1/13
5/1/13
6/1/13
7/1/13
8/1/13
9/1/13
1/1/14
2/1/14
3/1/14
4/1/14
5/1/14
6/1/14
7/1/14
8/1/14
9/1/14
10/1/12
11/1/12
12/1/12
10/1/13
11/1/13
12/1/13
10/1/14
11/1/14
12/1/14
Brown – any brown stone irrespective of quality
Other – balance Source: Gemdax, Company information.
(1) Indexed to 100 at August 2014, data runs to October 2017. 23
MOUNTAIN PROVINCE DIAMONDSTSX: MPVD | NASDAQ: MPVD
OVERVIEW OF 5034 PIPE
24
MOUNTAIN PROVINCE DIAMONDSTSX: MPVD | NASDAQ: MPVD
OVERVIEW OF 5034 PIPE
25
MOUNTAIN PROVINCE DIAMONDSTSX: MPVD | NASDAQ: MPVD
OVERVIEW OF TUZO PIPE
26
MOUNTAIN PROVINCE DIAMONDSTSX: MPVD | NASDAQ: MPVD
KELVIN AND FARADAY PIPES
Faraday 2 Faraday 1 & 3 Kelvin
Inferred Resource of: Inferred Resource of: Indicated Resource of:
• 1.39 million tonnes • 1.87 million tonnes • 8.50 million tonnes
• 2.24 carats per tonne • 1.01 carats per tonne • 1.60 carats per tonne
• 3.13 million carats • 1.90 million carats • 13.62 million carats
• US$112 per carat • US$75 per carat • US$63 per carat
27
MOUNTAIN PROVINCE DIAMONDSTSX: MPVD | NASDAQ: MPVD
DISCLOSURE OF TECHNICAL INFORMATION
Qualified Person
Technical information included in this presentation regarding the Company’s mineral property has been reviewed by Keyvan Salehi, P.Eng., MBA, a Qualified Person as defined
by National Instrument 43-101 – Standard of Disclosure for Mineral Properties (“NI 43-101”). All material technical information included herein has previously been disclosed by
the Company, and the reader is particularly directed to the Company’s most recently filed AIF and U.S. Form 40-F and its most recently filed interim and annual financial
reports; as well as the remaining filings completing Company’s continuous disclosure records. Those records include the technical report dated March 16, 2018 titled “Gahcho
Kué Mine, NI 43-101 Technical Report, NWT, Canada” (with an effective date of December 31, 2017).
Cautionary Note to U.S. Investors Regarding Mineral Reserve and Resource Estimates
The Company is subject to the reporting requirements of applicable Canadian securities laws and, as a result, reports its mineral reserve and mineral resource estimates as well
as other scientific or technical information regarding its mineral properties in accordance with Canadian reporting requirements. Canadian reporting requirements for disclosure
of mineral properties are governed by NI 43-101. As a result, information contained in this presentation containing descriptions of the Company’s mineral properties or estimates
of mineral reserves or mineral resources is not comparable to similar information generally disclosed by U.S. companies in reports filed with the SEC, which are governed by
the SEC’s Industry Guide 7 (“Guide 7”). These reporting standards have similar goals in terms of conveying an appropriate level of confidence in the disclosures being reported,
but embody different approaches and definitions. For example, under Guide 7 mineralization may not be classified as a “reserve” unless the determination has been made that
the mineralization can be economically and legally produced or extracted at the time such reserve determination is made. “Probable reserves” disclosed in this presentation
and reported in compliance with NI 43-101 may differ in certain material respects from “probable reserves” reported in compliance with Guide 7. Also disclosed in this
presentation are estimates of “inferred resources” reported in compliance with NI 43-101. While the terms “mineral resource” and “inferred resource” are recognized by NI 43-
101, they are not defined terms under standards of the SEC and, generally, U.S. companies are not permitted to report estimates of mineral resources of any category in
documents filed with the SEC. As such, certain information contained in this presentation concerning descriptions of mineralization and estimates of mineral reserves and
mineral resources under Canadian standards is not comparable to similar information disclosed by U.S. companies subject to the reporting requirements of the SEC. The
reader should not assume that all or any part of a mineral resource will ever be converted into mineral reserves. The reader is also cautioned not to assume that all or any part
of an inferred resource exists, or is economically or legally mineable. Further, an inferred resource has a great amount of uncertainty as to its existence and as to its economic
and legal feasibility, and a reader cannot assume that all or any part of an inferred resource will ever be upgraded to a higher category. Under Canadian rules, estimates of
inferred resources may not form the basis of feasibility or other economic studies.
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