Mountain Province Diamonds Provides Corporate Update

Core Viewpoint - Mountain Province Diamonds Inc. is undergoing significant management changes and operational adjustments in response to current market conditions, particularly regarding its joint venture with De Beers at the Gahcho Kué Mine [1][14]. Management Changes - Following the departure of Mark Wall, the Board of Directors has appointed Jonathan Comerford, the current Chairman, as acting President and CEO, opting not to seek a replacement at this time as part of cost-saving measures [2]. Project Developments - The Tuzo Phase 3 project at the Gahcho Kué Mine has been paused due to a careful assessment of its economics in light of the prevailing market environment, despite its strong potential [3]. - The partners are committed to responsibly managing operations and will continue to monitor market conditions for future development opportunities of the Tuzo Phase 3 project [4]. Production and Sales Outlook - The decision to pause the Tuzo Phase 3 project will not affect carat production or sales expectations for 2026, as the focus remains on mining the high-grade NEX pipe [5]. Joint Venture Financial Matters - The company has received in-kind election notices from De Beers totaling CAD$49,171,619, which represents the outstanding cash call amount under the joint venture agreement [6]. - Failure to pay the outstanding amount within 60 days will constitute a formal event of default under the joint venture agreement, potentially impacting the company's other secured indebtedness [7]. - Payments for the first outstanding cash call amount are due on March 17, 2026, with the company anticipating that proceeds from diamond sales may cover this amount [8]. Ongoing Discussions - The company is in discussions with De Beers regarding the IKE Notices and is exploring opportunities to reduce joint venture costs while maintaining stakeholder value [10]. Facility Fee Extension - The company has received an extension for the approval of a US$1 million facility fee related to a US$10 million increase in its bridge term facility, with the new deadline set for June 30, 2026 [13].