Condensed Consolidated Interim Financial Statements (Expressed in Canadian Dollars)

MOUNTAIN PROVINCE DIAMONDS INC.

Three and Six Months Ended June 30, 2016 (Unaudited)

CONTENTS

Page

Responsibility for Condensed Consolidated Interim Financial Statements

3

Condensed Consolidated Interim Balance Sheets

4

Condensed Consolidated Interim Statements of Comprehensive (Loss) Income

5

Condensed Consolidated Interim Statements of Equity

6

Condensed Consolidated Interim Statements of Cash Flows

7

Notes to the Condensed Consolidated Interim Financial Statements

8 - 26

RESPONSIBILITY FOR CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

The accompanying unaudited condensed consolidated interim financial statements of Mountain Province Diamonds Inc. (the "Company") are the responsibility of the Board of Directors.

The unaudited condensed consolidated interim financial statements have been prepared by management, on behalf of the Board of Directors, in accordance with the accounting policies disclosed in the notes to the Company's audited consolidated financial statements as at December 31, 2015. Where necessary, management has made informed judgments and estimates in accounting for transactions which were not complete at the balance sheet date. The condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standards 34 - Interim Financial Reporting using the accounting policies consistent with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB") appropriate in the circumstances.

Management has established processes, which are in place to provide sufficient knowledge to support management representations that it has exercised reasonable diligence that the unaudited condensed consolidated interim financial statements fairly present in all material respects the financial condition, results of operations and cash flows of the Company, as of the date of and for the periods presented by the unaudited condensed consolidated interim financial statements.

The Board of Directors is responsible for reviewing and approving the unaudited condensed consolidated interim financial statements together with other financial information of the Company and for ensuring that management fulfills its financial reporting responsibilities. The Audit Committee assists the Board of Directors in fulfilling this responsibility.

The Audit Committee meets with management to review the financial reporting process and the unaudited condensed consolidated interim financial statements together with other financial information of the Company. The Audit Committee approves the unaudited condensed consolidated interim financial statements together with other financial information of the Company for issuance to the shareholders on behalf of the Board of Directors.

Management recognizes its responsibility for conducting the Company's affairs in compliance with IFRS as issued by the IASB, and applicable laws and regulations, and for maintaining proper standards of conduct for its activities.

"Patrick C. Evans" "Bruce Ramsden"

Patrick C. Evans Bruce Ramsden

President and Chief Executive Officer VP Finance and Chief Financial Officer

Toronto, Canada August 11, 2016

Condensed Consolidated Interim Balance Sheets

In Canadian dollars (Unaudited)

Notes

June 30,

2016

December 31,

2015

ASSETS

$ 19,521,301

$ 9,081,791

Current assets

Cash

Amounts receivable

1,470,656

1,348,018

Prepaid expenses

686,202

758,249

Supplies inventory

12,454,417

Restricted cash

6

34,132,576

11,188,058

104,938,263

94,512,019

Financing costs

9

5,654,790

13,891,403

Property and equipment

7

588,233,001

463,256,628

Total assets

$ 732,958,630

$ 582,848,108

LIABILITIES AND SHAREHOLDERS' EQUITY

$ 30,407,014

$ 28,193,849

Current liabilities

Accounts payable and accrued liabilities

12

Derivative liabilities

10

4,133,581

15,746,449

Loan facility

9

34,540,595

43,940,298

339,826,624

205,686,683

Derivative liabilities

10

5,517,183

1,495,304

Decommissioning and restoration liability

8

25,508,177

23,044,826

Shareholders' equity:

472,755,703

472,285,993

Share capital

11

Share‐based payments reserve

11

4,700,568

4,775,687

Deficit

(149,890,220)

(168,380,683)

Total shareholders' equity

327,566,051

308,680,997

Total liabilities and shareholders' equity

$ 732,958,630

$ 582,848,108

Contingencies and commitments 5 & 7

On behalf of the Board:

"Patrick Evans" "Jonathan Comerford"

Director Director

The notes to the condensed consolidated interim financial statements are an integral part of these statements.

Mountain Province Diamonds Inc. published this content on 22 August 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 22 August 2016 21:44:06 UTC.

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