Mountain Province Diamonds Initiates Exploration at Kennady North Project

TORONTO and NEW YORK, January 20, 2011 -

    Shares Issued and Outstanding: 77,706,057
    TSX: MPV
    NYSE- AMEX: MDM

Mountain Province Diamonds Inc. ("Mountain Province", the "Company")
(TSX: MPV, NYSE-AMEX: MDM) today announced plans for work to be completed on
the Company's 100%-owned Kennady North Project, which is located immediately
to the north and west of the Gahcho Kué Project, a joint venture between
Mountain Province and De Beers Canada Inc. ("De Beers").

The Kennady North Project consists of five mining leases and eight
mineral claims, an area of approximately 30,374 acres. The property hosts the
Kelvin, Faraday and Hobbes kimberlites, which were discovered approximately
ten years ago and are located between 7 km and 12 km northeast of the Gahcho
Kué kimberlite cluster. The land package falls within the boundaries of the
original AK claims staked in 1992 that originally comprised 520,000 acres.
Since 2006, when Mountain Province recovered a 100% interest in the Kennady
North Project, no further exploration activity has taken place. During that
period the Company's primary focus has been on the advancement of the Gahcho
Kué Project.

A desktop study is currently underway to compile and review all of the
previous work completed on Kennady North. The comprehensive database will
allow Mountain Province to fast track and fine tune its future exploration
plans in an efficient and cost effective manner. The results will be used to
design and implement an exploration program on the Kennedy North Project,
which is expected to commence in the coming months. Once confirmed, details
of these activities will be announced.

Located in Canada's Northwest Territories, Gahcho Kué is one of the
largest new diamond projects under development globally. The project consists
of a cluster of kimberlites, three of which have an indicated resource of
approximately 30.2 million tonnes grading at 1.67 carats per tonne
(approximately 50.5 million carats) and an inferred resource of approximately
6 million tonnes grading at 1.73 carats per tonne (approximately 10.3 million
carats). Mineral resources that are not mineral reserves do not have
demonstrated economic viability. Results of an independent feasibility study
of the Gahcho Kué Project were announced on December 7, 2010, and the Gahcho
Kué EIS was filed on December 23, 2010.

Qualified Person

This news release has been prepared under the supervision of Carl G.
Verley, P.Geo., who serves as the qualified person under National Instrument
43-101.

Forward-Looking Statements

This news release may contain forward-looking statements, within the
meaning of the "safe-harbor" provision of the Private Securities Litigation
Reform Act of 1995, regarding the Company's business or financial condition.
Actual results could differ materially from those described in this news
release as a result of numerous factors, some of which are outside the
control of the Company.

For further information:

    Mountain Province Diamonds Inc.
    Patrick Evans, President and CEO
    Tel: +1-416-670-5114
    401 Bay Street, Suite 2700
    Toronto, Ontario M5H 2Y4
    Phone: +1(416)361-3562
    Fax: +1(416)603-8565

www.mountainprovince.com

E-mail: info@mountainprovince.com

For further information: Mountain Province Diamonds Inc., Patrick Evans, President and CEO, Tel: +1-416-670-5114, 401 Bay Street, Suite 2700, Toronto, Ontario M5H 2Y4, Phone: +1(416)361-3562, Fax: +1(416)603-8565