News Bureau

January 18, 2019

Mountain Province recovers around 7mn cts diamonds

Mountain Province Diamonds announces production and sales results for the fourth quarter ended December 31, Q4 2018 and full year from the Gahcho Kué Diamond Mine (GK Mine). According to the highlights, in Q4 2018, 1,545,786 carats were recovered at an average grade of 2.06 carats per tonne. During the full year 2018, 6,936,894 carats at an average grade of 2.17 carats per tonne, 17% higher than total carats recovered in 2017.

In Q4 2018, the Company sold 822,548 carats at an average value of $USD 65 per carat for total proceeds of $USD 53.6 million. For the full year 2018, the Company sold 3,252,491 carats at an average value of $USD 74 per carat for total proceeds of $USD 240 million.

Diamond sales were in line with our expectations and reflect current market conditions. Prices for the better quality larger goods, where the majority of our value lies, remained strong throughout the year, however, during the latter part of H2 2018, lower qualities and smaller sizes experienced price pressure, driven predominantly by a weakened Indian Rupee against the US Dollar.

Demand at retail in both the US and China for luxury goods were reported to be strong overall in 2018, initial reports from the Chinese and US holiday retail season are generally positive. Reid Mackie, the Company's Vice President of Diamond Marketing, commented: "we had a strong start to 2018 with price increases in most rough diamond categories.

Low quality and smaller sized rough diamonds did experience price pressure during H2 2018, but our sales process attracted sufficient demand to achieve the selling of all our production for the year. We expect to see more interest in the first quarter rough sales where the market is traditionally stronger."

Stuart Brown, the Company's President and Chief Executive Officer, commented: "From a production perspective 2018 was a good year for Mountain Province Diamonds where we achieved our expected tonnes mined and recovered a record amount of carats. Operationally, the mine has settled down and our expectation is that it will continue to perform at these levels in the future. So far in 2019, production has been positive."

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