Mountain Province Diamonds Secures Additional US$10 Million Bridge Facility

TSX and OTC: MPVD

TORONTO and NEW YORK, July 28, 2025 /PRNewswire/ — Mountain Province Diamonds Inc. (TSX: MPVD) (OTC: MPVD) announced today it’s bolstering its financial position through an amendment to its existing bridge credit facility with Dunebridge Worldwide Ltd. The deal expands the bridge term facility by $10 million USD, bringing the total to $40 million USD.

The initial credit agreement, inked back in February, with a subsequent amendment this past May, provided an immediate $30 million USD lifeline to Mountain Province. This new agreement adds an “Additional Bridge Term Facility” pending mutually agreed upon terms – now solidified in the amendment.

Good news for stability: the “Additional Bridge Term Facility” shares the same maturity date as the original, March 18, 2026. The interest rate remains at a reasonable 10.5% per annum, capitalized and compounded quarterly. However, investors should note a potential jump to 12.5% if either facility remains unpaid at maturity.

There’s a catch: Mountain Province will pay Dunebridge a $1 million USD “Facility Fee” upon maturity. Crucially, this fee hinges on disinterested shareholder approval, per TSX regulations. Alternatively, Mountain Province could sidestep this requirement by delisting from the Toronto Stock Exchange and securing a listing on the TSX Venture Exchange (TSXV). The company’s next move remains undecided. Failing to secure shareholder approval or a TSXV listing by January 25, 2026 (unless waived or extended by the lender), triggers a default event.

MI 61-101 Reliance on Exemption for Financial Difficulty in Respect of Additional Bridge Facility

Dunebridge’s status as a “related party” necessitates invoking a minority shareholder protection exemption (MI 61-101). Mountain Province is leaning on the “financial difficulty” clause, arguing that the amendment, and especially the Additional Bridge Term Facility and associated Facility Fee, are justified given the company’s current financial straits. The board and its independent directors vouch for the deal’s reasonableness under these conditions.

TSX Conditional Approval

The TSX has conditionally approved the amendment, acknowledging Dunebridge’s insider status. This approval is contingent on the “value of consideration” to insiders (excluding the Facility Fee) remaining below 10% of Mountain Province’s market capitalization as of July 28, 2025—roughly CAD 11.68 Million.

Value of Consideration to Insiders

The estimated value of consideration to insiders, excluding the Facility Fee, stands at CAD 959,000 as of July 28, 2025, representing 8% of the stated market cap. This stems from the projected interest payable on the Additional Bridge Facility. Zooming out to include the Facility Fee, the total consideration climbs to CAD 2,329,000, or 20% of the market cap.

About Mountain Province Diamonds Inc.

Mountain Province holds a 49% stake in the Gahcho Kué mine (GK Mine), a joint venture with De Beers Canada Inc. located in Canada’s Northwest Territories. The GK Mine actively mines, develops, and explores several kimberlites. Mountain Province also controls a vast expanse of mineral claims and leases around the GK Mine, including an indicated mineral resource for the Kelvin kimberlite and inferred mineral resources for the Faraday kimberlites.

For further information on Mountain Province Diamonds, visit www.mountainprovince.com.

Caution Regarding Forward Looking Information

This press release includes forward-looking statements and information regarding Mountain Province’s business, operations, and financial performance. These statements cover topics such as the bridge credit facility’s maturity, potential alternative listings, possible delisting, and the value of consideration to insiders. These statements are characterized by terms like “anticipates,” “may,” “plans,” and “expects,” and are based on management’s opinions and estimates as of the release date. Numerous assumptions, risks, and uncertainties could significantly alter actual events and results.

Key risks include regulatory approvals, potential shareholder or party disagreements, fluctuating diamond supply and demand, commodity price volatility, currency exchange rates, cost overruns, labor disputes, and equipment failures.

These factors are detailed in Mountain Province’s Annual Information Form and MD&A filed on SEDAR+, containing additional assumptions. The company cautions that this list is not exhaustive, and investors should consider these uncertainties. This applies only to this release, and the company is only obligated to update statements based on securities law. Do not place undue reliance on forward-looking statements.

Although Mountain Province has attempted to identify important ones, 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. The forward-looking information contained in this news release is expressly qualified by this cautionary statement.

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