Mountain Province Diamonds Provides Corporate Update

Executive Summary

• Jonathan Comerford, current Chairman, is appointed acting President and CEO after Mark Wall’s departure; the board will not seek a permanent replacement at this time.
• The partners have paused the Tuzo Phase 3 expansion at the Gahcho Kué Mine, citing weak market conditions, but this pause will not affect 2026 carat production or sales guidance.
• De Beers issued three in‑kind election (IKE) notices totaling CAD $49.17 million; the first payment of CAD $38.85 million is due March 17 2026, with subsequent weekly payments thereafter.

Key Details

• Management Change: Jonathan Comerford appointed acting President & CEO; no external search will be conducted currently (cost‑saving measure).
• Tuzo Phase 3 Pause: Decision by Mountain Province and De Beers to suspend further development of the Tuzo Phase 3 project until market conditions improve. No impact on 2026 production or sales volumes, which remain focused on mining the high‑grade NEX pipe.
• Joint‑Venture Cash Calls (IKE Notices):
• Three IKE notices issued by De Beers under the amended JVA dated March 18 2025.
• Aggregate cash call amount: CAD $49,171,619 (plus default interest).
• First payment of CAD $38,847,140 due March 17 2026; remaining balance payable weekly thereafter.
• Company expects proceeds from scheduled diamond sales to cover the first payment.
• Overdraft IKE: Additional notice received for amounts overdrawn by the JV; company has not yet reviewed claim details.
• Facility Fee Extension: Dunebridge Worldwide Ltd. extended the shareholder‑approval deadline for a US $1 million facility fee (related to a US $10 million bridge term facility increase) from Jan 25 2026 to June 30 2026 to allow approval at the 2026 AGM.
• Forward‑Looking Statements: Company cautions that actual results may differ materially due to uncertainties around cash call payments, overdraft claim resolution, diamond market conditions, and potential default events under the JVA or credit facility agreements.

Notable Quotes

“The challenges currently facing the Company largely reflects the prolonged weakness in the diamond sector… our focus remains on carefully managing costs, protecting liquidity, and making measured decisions to support the long‑term sustainability of our operations.” – Jonathan Comerford, President & CEO

Materiality Assessment: Material – Neutral – The update contains significant information about executive leadership, a major project pause, and sizable cash‑call obligations that could affect the company’s liquidity and future financing arrangements.