Mountain Province Diamonds Announces Full Year and 4th Quarter 2022 Results.

TORONTO and NEW YORK: Mountain Province Diamonds Inc. ("Mountain Province", or the "Company") (TSX: MPVD) (OTCQX: MPVD) today announces its financial and operating results for the fourth quarter ("the Quarter" or "Q4 2022") and the full year ended December 31, 2022 ("FY 2022").

All figures are expressed in Canadian dollars unless otherwise noted and are unaudited.

FY 2022 Highlights

Adjusted EBITDA1 of $177.2 million, up 31% relative to 2021 (2021: $135.4 million).

Total sales revenue at $388.9 million (US$297.3 million) compared to $298.3 million in 2021 (US$237 million: sales revenue in 2021 does not include the 'upside' revenue of $10.4m from the Dunebridge agreement), at an average realized value of $146 per carat (US$112) 2021: $94 per carat (US$75).

During 2022 the Company repaid US$110 million in debt, US$60 million from operating cash flow and utilizing the US$50 million junior secured term loan credit facility ('Junior Credit Facility')

In December 2022, the Company completed the refinancing transaction involving the issuance of US$195 million aggregate principal amount of its 9.000% Senior Secured Second Lien Notes due 2025 ('Notes'), to refinance US$189.2 million aggregate principal amount of the Company's existing 8.000% Senior Secured Second Lien Notes due 2022 ('Old Notes')

Significant discovery beside and connected to the Hearne open pit that has potential to transition Gahcho Kue to an underground producer, and potentially increasing mine life.

Updated Technical Report filed March 2022 which featured a pre-tax/royalty NPV 7.5% attributable to Mountain Province Diamonds of $1,233 million.

Operational Highlights for Q4 and FY 2022

(all figures reported on a 100% basis unless otherwise stated)

1,621,800 carats recovered during the quarter at an average grade of 1.96 carats per tonne, 7% higher than the comparable quarter (Q4 2021: 1,511,253 carats at 1.86 carats per tonne). 5,519,309 carats recovered during FY 2022 at an average grade of 1.78 carats per tonne, 12% lower than the comparable period (FY 2021: 6,229,042 at 2.02 carats per tonne).

705,924 ore tonnes mined during the quarter, a 31% decrease on the comparable period (Q4 2021: 1,019,671). 4,113,648 ore tonnes mined during FY 2022, a 16% increase from the comparable period (FY 2021: 3,561,417).

828,644 ore tonnes treated during the quarter, a 2% increase on the comparable period (Q4 2021: 813,308). 3,102,219 ore tonnes treated during FY 2022, a 1% increase from the comparable period (FY 2021: 3,082,572).

10,144,844 total tonnes mined during the quarter, a 6% decrease on the comparable period (Q4 2021: 10,812,723). 33,947,188 total tonnes mined during FY 2022, a 4% decrease from the comparable period (FY 2021: 35,447,014).

Q4 and FY 2022 Production Statistics

2022 Q4

2021 Q4

YoY Variance

Total tonnes mined (ore and waste)

10,144,844

10,812,723

-6 %

Ore tonnes mined

705,924

1,019,671

-31 %

Ore tonnes treated

828,644

813,308

2 %

Carats recovered

1,621,800

1,511,253

7 %

Carats recovered (49% share)

794,682

740,514

7 %

Recovered grade (carats per tonne)

1.96

1.86

5 %

FY 2022

FY 2021

YoY Variance

Total tonnes mined (ore and waste)

33,947,188

35,447,014

-4 %

Ore tonnes mined

4,113,648

3,561,417

16 %

Ore tonnes treated

3,102,219

3,082,572

1 %

Carats recovered

5,519,309

6,229,042

-12 %

Carats recovered (49% share)

2,704,461

3,052,231

-11 %

Recovered grade (carats per tonne)

1.78

2.02

-12 %

Financial Highlights for Q4 2022

758,000 carats sold (Q4 2021: 809,000), with total proceeds of $96.3 million (US$71.3 million) compared to $85.1 million in Q4 2021, (US$67.6 million), at an average realised value of $127 per carat (US$94), Q4 2021: $105 per carat, (US$84).

Adjusted EBITDA1 of $23.4 million.

Earnings from mine operations of $31.6 million.

Cash costs of $160 per tonne treated and $82 per carat recovered, include capitalized stripping costs1.

Net income of $9.4 million or $0.04 earnings per share. Included in the determination of net income for the three months ended December 31, 2022, is an unrealized foreign exchange gain of $5.6 million, on the translation of the Company's USD-denominated long-term debts. The unrealized foreign exchange gains are a result of the relative strengthening of the Canadian dollar versus the...