UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549



FORM 40-F



 ̈Registration statement pursuant to Section 12 of the Securities Exchange Act of 1934



or



xAnnual report pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934



|For the fiscal year ended December 31, 2016 | Commission File Number: 00132468
|------------------------------------------- | --------------------------------



MOUNTAIN PROVINCE DIAMONDS INC.

(Exact name of registrant as specified in its
charter)



N/A

(Translation of Registrant's name into English
(if applicable))



Canada

(Province or other jurisdiction of incorporation
or organization)



1499

(Primary Standard Industrial Classification
Code Number (if applicable))



N/A

(I.R.S. Employer Identification Number (if applicable))



TD Canada Trust Tower – Brookfield
Place

161 Bay Street, Suite 1410

Toronto, Ontario, M5J 2S1

Tel: 416 361 3562

(Address and telephone number of Registrant's
principal executive offices)



Registered Agent Solutions Inc.

99 Washington Avenue, Suite 1008

Albany, New York 12260

Tel: 888 705 7274

(Name, address (including zip code) and telephone
number (including area code)
of agent for service in the United States)



Copies to

Richard B. Raymer

Dorsey & Whitney LLP

TD Canada Trust Tower – Brookfield
Place

161 Bay Street, Suite 4310

Toronto, ON M5J 2S1

Direct: (416) 367-7388











Securities registered or to be registered pursuant to Section 12(b)
of the Act.



|Title of each class | Name of each exchange on which registered
|------------------- | -----------------------------------------
|Common Shares       | NASDAQ                                   



Securities registered or to be registered pursuant to Section 12(g)
of the Act.



None

(Title of Class)



Securities for which there is a reporting obligation pursuant to
Section 15(d) of the Act.



None

(Title of Class)



For annual reports, indicate by check mark the information filed
with this Form:



|xAnnual information form | xAudited annual financial statements
|------------------------ | ------------------------------------



Indicate the number of outstanding shares of each of the issuer's
classes of capital or common stock as of the close of the period covered by the annual report.



The number of common shares of the issuer
outstanding as of December 31, 2016 was 159,818,833.



Indicate by check mark whether the Registrant
by filing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule
12g3-2(b) under the Securities Exchange Act of 1934 (the "Exchange Act"). If "Yes" is marked, indicate the
filing number assigned to the Registrant in connection with such Rule.



|Yes ̈ | NOx
|---- | ---



Indicate by check mark whether the Registrant
(1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for
such shorter period that the Registrant was required to file such reports) and (2) has been subject to such filing requirements
for the past 90 days.



|Yesx | NO ̈
|---- | ---



Indicate by check mark whether the Registrant
has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted
and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter
period that the Registrant was required to submit and post such files).



|Yes ̈ | NO ̈
|---- | ---











EXPLANATORY NOTE



Mountain Province Diamonds Inc. (the “Registrant”)
is a Canadian issuer eligible to file its annual report pursuant to Section 13 of the Securities Exchange Act of 1934, as amended
(the “ExchangeAct”), on Form 40-F pursuant to the multi-jurisdictional disclosure system of the Exchange
Act. The Registrant is a “foreign private issuer” as defined in Rule 3b-4 under the Exchange Act. Equity securities
of the Registrant are accordingly exempt from Sections 14(a), 14(b), 14(c), 14(f) and 16 of the Exchange Act pursuant to Rule 3a12-3.



NOTICE TO UNITED STATES READERS

DIFFERENCES IN UNITED
STATES AND CANADIAN REPORTING PRACTICES



The Registrant is permitted, under the multi-jurisdictional
disclosure system adopted by the United States Securities and Exchange Commission (the “Commission”) and certain
Canadian securities regulators, to prepare this annual report in accordance with Canadian disclosure requirements, which are different
from those of the United States. The Registrant has prepared its financial statements, which are filed as Exhibit 99.2 to
this annual report on Form 40-F, in accordance with International Financial Reporting Standards, as issued by the International
Accounting Standards Board (“IFRS”). Financial statements prepared in accordance with IFRS may differ from financial
statements prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) and they
may not be comparable to financial statements of United States companies.



Unless otherwise indicated, all dollar amounts
in this annual report on Form 40-F are in Canadian dollars. The exchange rate of Canadian dollars into U.S. dollars, on March
27, 2017, based upon the closing rate published by the Bank of Canada, was U.S.$1.00=CDN$ 1.3368. Bank of Canada exchange rates
are nominal quotations and are not buying or selling rates. These rates are intended for statistical or analytical purposes. Rates
available from financial institutions will differ. Rates are expressed in Canadian dollars, converted from U.S. dollars.



FORWARD-LOOKING INFORMATION



Certain information included in this annual
report and the exhibits attached hereto, along with other documents the Registrant has publicly filed on SEDAR and with the Commission
may constitute forward-looking information within the meaning of Canadian and U.S. securities laws, including Section 21E of the
Securities Act of 1933, as amended (the “Securities Act”), the U.S. Private Securities Litigation Reform Act of 1995
(the “PSLRA”), or in releases made by the Commission, all as may be amended from time to time. The following cautionary
statements are being made pursuant to the Securities Act, the Exchange Act and the PSLRA with the intention of obtaining the benefits
of the “safe harbor” provisions of such laws.



In some cases, forward-looking information
can generally be identified by the use of terms such as “may”, “will”, “should”, “could”
“expect”, “plan”, “anticipate”, “foresee”, “appears”, “believe”,
“intend”, “estimate”, “predict”, “potential”, “continue”, “objective”,
“modeled”, “hope”, “forecast” or other similar expressions concerning matters that are not
historical facts. Forward-looking information relates to management’s future outlook and anticipated events or results,
and can include statements or information regarding plans, timelines and targets for mining, development, production and exploration
activities at the Registrant’s mineral property held through a joint venture with De Beers Canada Inc. (“De Beers”)
(51% De Beers and 49% the Registrant), projected capital expenditure requirements, liquidity and working capital requirements,
estimated reserves and resources at, and production from, the Gahcho Kué Diamond Mine (“GK Diamond Mine”),
and expectations concerning the diamond industry, and expected cost of sales and operating costs. Forward-looking information
included in this annual report on Form 40-F and exhibits attached hereto, include the current production forecast for the GK Diamond
Mine, estimated reserves and resources at the GK Diamond Mine, and plans, timelines and targets for mining, development, permitting,
production and exploration activities at the Registrant’s mineral property. The timing and quantum will depend on a number
of factors including production ramp-up, the production profile and realized diamond prices.



3







Forward-looking information is based on certain
factors and assumptions regarding, among other things, the current mine plans for the GK Diamond Mine; mining, production and exploration
activities at the Registrant’s mineral property; currency exchange rates; required operating and capital costs, labour and
fuel costs, world and United States economic conditions, future diamond prices, and the level of worldwide diamond production.
While the Registrant considers these assumptions to be reasonable based on the information currently available to it, they may
prove to be incorrect. Forward-looking information is subject to certain factors, including risks and uncertainties, which could
cause actual results to differ materially from what the Registrant currently expects. These factors include, among other things,
the uncertain nature of mining activities, including risks associated with joint venture operations, including risks associated
with the inability to control the timing and scope of future capital expenditures, variations in mineral resource and mineral reserve
estimates, grade estimates or expected recovery rates, failure of plant, equipment or processes to operate as anticipated, risks
associated with regulatory requirements and the ability to obtain all necessary regulatory approvals, modifications to existing
practices so as to comply with any future permit conditions that may be imposed by regulators, the risk of fluctuations in diamond
prices and changes in United States and world economic conditions, uncertainty as to whether dividends will be declared by the
Registrant’s Board of Directors, the risk of fluctuations in the Canadian/U.S. dollar exchange rate and cash flow and liquidity
risks. See “Risk Factors” in the Registrant’s Annual Information Form attached hereto as Exhibit 99.1
for additional material risk factors that could cause actual results to differ materially from the forward-looking information.



Readers are cautioned not to place undue importance
on forward-looking information, which speaks only as of the date of this Annual Report, and should not rely upon this information
as of any other date. Due to assumptions, risks and uncertainties, including the assumptions, risks and uncertainties identified
above and elsewhere in this Annual Report, actual events may differ materially from current expectations. The Registrant uses forward-looking
statements because it believes such statements provide useful information with respect to the currently expected future operations
and financial performance of the Registrant, and cautions readers that the information may not be appropriate for other purposes.
While the Registrant may elect to, it is under no obligation and does not undertake to update or revise any forward-looking information,
whether as a result of new information, future events or otherwise at any particular time, except as required by law. Additional
information concerning factors that may cause actual results to materially differ from those in such forward-looking statements
is contained in the Registrant’s filings with Canadian and United States securities regulatory authorities and can be found
at www.sedar.com and www.sec.gov, respectively.



4







RESOURCE AND RESERVE ESTIMATES



The Registrant’s Annual Information Form
for the fiscal year ended December 31, 2016, attached as Exhibit 99.1 to this annual report on Form 40-F, and incorporated
by reference herein, has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ
from the requirements of United States securities laws. The terms “mineral reserve”, “proven mineral reserve”
and “probable mineral reserve” are Canadian mining terms as defined in accordance with Canadian National Instrument
43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) and the Canadian Institute of Mining, Metallurgy
and Petroleum (the “CIM”) — CIM Definition Standards on Mineral Resources and Mineral Reserves,
adopted by the CIM Council, as amended. These definitions differ from the definitions in the Commission’s Industry Guide
7 (“IndustryGuide 7”) under the Exchange Act. Under Industry Guide 7 standards, a “final”
or “bankable” feasibility study is required to report reserves, the three-year historical average price is used in
any reserve or cash flow analysis to designate reserves and the primary environmental analysis or report must be filed with the
appropriate governmental authority.



In addition, the terms “mineral resource”,
“measured mineral resource”, “indicated mineral resource” and “inferred mineral resource” are
defined in and required to be disclosed by NI 43-101; however, these terms are not defined terms under Industry Guide 7 and are
normally not permitted to be used in reports and registration statements filed with the Commission. Investors are cautioned not
to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. “Inferred mineral
resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal
feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category.
Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies,
except in rare cases. Investors are cautioned not to assume that all or any part of an inferred mineral resource exists or is economically
or legally mineable.



Accordingly, information contained in this
report and the documents incorporated by reference herein containing descriptions of our mineral deposits may not be comparable
to similar information made public by United States companies subject to the reporting and disclosure requirements under the United
States federal securities laws and the rules and regulations thereunder.



PRINCIPAL DOCUMENTS



The following documents have been filed as part of this annual report
on Form 40-F:



A. Annual Information Form



The Registrant’s Annual Information Form for the fiscal year
ended December 31, 2016 is attached as Exhibit 99.1 to this annual report on Form 40-F, and is incorporated by reference
herein.



5







B. Audited Annual Financial Statements



The Registrant’s consolidated audited
annual financial statements as at and for the years ended December 31, 2016 and 2015, including the report of the independent registered
public accounting firm with respect thereto, are included in Exhibit 99.2 attached to this annual report on Form 40-F and
are incorporated by reference herein.



C. Management’s Discussion and Analysis



The Registrant’s management’s discussion
and analysis of financial condition and results of operations for the year ended December 31, 2016 is included in Exhibit 99.2
attached to this annual report on Form 40-F and is incorporated by reference herein.



TAX MATTERS



Purchasing, holding or disposing of securities
of the Registrant may have tax consequences under the laws of the United States and Canada that are not described in this annual
report on Form 40-F.



DISCLOSURE CONTROLS AND PROCEDURES



An evaluation was carried out under the supervision,
and with the participation, of the Registrant’s management, including the Chief Executive Officer and Chief Financial Officer,
of the effectiveness of the Registrant’s design and operation of its disclosure controls and procedures as of the end of
the period covered by this annual report on Form 40-F. Based upon that evaluation, as a result of the material weaknesses in internal
control over financial reporting described in the Registrant’s Management's Annual Report on Internal Control Over Financial
Reporting as of December 31, 2016, included in Exhibit 99.2 attached to this annual report on Form 40-F and incorporated
by reference herein, the Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls
and procedures were not effective as of the Evaluation Date



6







MANAGEMENT’S ANNUAL REPORT ON

INTERNAL CONTROL OVER FINANCIAL REPORTING



The Registrant’s management’s annual
report on internal control over financial reporting as of December 31, 2016, is included in Exhibit 99.2 attached to this
annual report on Form 40-F and is incorporated by reference herein.



ATTESTATION REPORT OF THE REGISTERED PUBLIC
ACCOUNTING FIRM





The Registrant’s independent registered
public accounting firm, KPMG LLP, has issued an attestation report on management’s assessment of internal control over financial
reporting expressing an adverse opinion on the effectiveness of the Registrant’s internal control over financial reporting
as of December 31, 2016, which is included in Exhibit 99.2 to this annual report on Form 40-F, and is incorporated by reference
herein.



CHANGES IN INTERNAL CONTROL OVER FINANCIAL
REPORTING



In addition to the material weaknesses identified
in management’s annual report on internal control over financial reporting as of December 31, 2016 included in Exhibit
99.2 to this annual report on Form 40-F, which is incorporated by reference herein, there have been additional changes in
the Registrant’s internal control over financial reporting during the fiscal year ended December 31, 2016. The Operator
of the GK Mine relocated from Toronto to Calgary, which resulted in the majority of the new compliment of staff being recruited
in Calgary. As part of the restructuring, the accounts payable, effective July 1, 2016 was outsourced to Anglo American Global
Shared Services.



7







NOTICES PURSUANT TO REGULATION BTR



There were no notices required by Rule 104
of Regulation BTR that the Registrant sent during the year ended December 31, 2016 concerning any equity security subject to a
blackout period under Rule 101 of Regulation BTR.



CODE OF ETHICS FOR CHIEF EXECUTIVE OFFICER,CHIEF FINANCIAL OFFICER, OFFICERS, DIRECTORS AND EMPLOYEES



The Registrant has adopted a written “code
of ethics” (as defined by the rules and regulations of the Commission), entitled “Code of Ethics and Business Conduct”
that applies to each director, officer and employee, including the Registrant’s Chief Executive Officer, Chief Financial
Officer and principal accounting officer.



The code is attached hereto as Exhibit
99.9 to this annual report on Form 40-F. The code may also be obtained from SEDAR at www.sedar.com or free of charge upon
request from Investor Relations of the Registrant at Suite 1410, 161 Bay Street, Toronto, Ontario, M5J 2S1, (416) 361-3562, or
by viewing the Registrant’s web site at www.mountainprovince.comunder the tab entitled “Company/Governance”.



There were no amendments to the code, and no
waivers of the code with respect to any director, executive officer or principal financial and accounting officers.



CORPORATE GOVERNANCE GUIDELINES



The Registrant has adopted corporate governance
guidelines and established committees and charters for its Audit Committee, Nominating & Corporate Governance Committee and
Compensation Committee regarding such matters as, but not limited to, the Audit Committee, director qualification standards and
responsibilities, director compensation and management succession. These guidelines and charters are available on the Registrant’s
website at www.mountainprovince.comunder the tab entitled “Company/Governance”.



8







AUDIT COMMITTEE



The Board of Directors of the Registrant has a separately designated
standing Audit Committee. The members of the Audit Committee are:



| | Chair:   | David Whittle     
| | -------- | ------------------
| | Members: | Jonathan Comerford
| |          | Peeyush Varshney  



David Whittle assumed the role of Chairman of the Audit Committee
in June, 2006.



All members of the Audit Committee are financially
literate and independent, as that term is defined by the NASDAQ’s corporate governance listing standards applicable to the
Registrant and as determined under Rule 10A-3 of the Exchange Act.



AUDIT COMMITTEE FINANCIAL EXPERT



The Registrant’s Board of Directors has
determined that it has one Audit Committee financial expert serving on its Audit Committee. David Whittle has been determined by
the Board of the Registrant to be an “audit committee financial expert” as that term is defined by the rules and regulations
of the Commission and are independent, as that term is defined by applicable securities laws and the NASDAQ (“NASDAQ”)
listing standards applicable to the Registrant. The Commission has indicated that the designation of directors as audit committee
financial experts does not (i) make them an “expert” for any purpose, (ii) impose any duties, obligations or liability
on them that are greater than those imposed on members of the Audit Committee and Board of Directors who do not carry this designation,
or (iii) affect the duties, obligations or liability of any other member of the Audit Committee or Board of Directors of the Registrant.



Mr. Whittle has approximately 24 years of experience
as a senior executive and director of public companies listed in both Canada and the United States. He is a Canadian qualified
Chartered Professional Accountant (CPA,CA), having articled with the Chartered Accounting firm of Coopers & Lybrand, with a
Bachelor of Commerce degree (Finance) from the University of British Columbia. Most recently, from October 2007 through December
2014, he served as Chief Financial Officer of Alexco Resource Corp., a public company listed on both the TSX and the NYSE-MKT and
operating both in the mining business and in the business of providing consulting services to third parties in respect of environmental
remediation and permitting. Prior to that, from 2004 to August 2007, Mr. Whittle was Chief Financial Officer of Hillsborough Resources
Limited, a public company in the mining business listed on the TSX. Prior to 2004, he was Chief Financial Officer, Chief Executive
Officer and/or a director of a number of other public companies, and additionally from 1993 to 2004 was principal and partner of
a Chartered Accountancy practice in the Vancouver area, providing services to both private and public companies in a variety of
industries including mining, real estate, telecommunications, computer consulting, high tech and general merchandising. He also
served as lead outside director and chair of the audit committee of Kennady Diamonds Inc., from February 2012 until June 2016,
and currently sits as a member of the audit committee of the Canadian Institute of Mining, Metallurgy and Petroleum. He has been
a member of the Audit Committee since becoming a director of the Company in November 1997, serving as Chair of the Audit Committee
since 2006.



PRINCIPAL ACCOUNTANT FEES AND SERVICES



The aggregate fees billed for professional
services rendered by KPMG LLP to the Registrant and its subsidiaries for the years ended December 31, 2016 and December 31, 2015
totaled $342,339 and $352,667, respectively, as detailed in the following table:



|Auditor’s Fees      |  | 2016 CAD$ |         |  | % of Total Fees |  |       | 2015 CAD$ |  |  | % of Total Fees | 
|------------------- |  | --------- | ------- |  | --------------- |  | ----- | --------- |  |  | --------------- | 
|Audit Fees:         |  |           |         |  |                 |  |       |           |  |  |                 | 
|                    |  |           | 270,000 |  |                 |  | 78.8  |           |  |  | 275,000         | 
|                    |  |           |         |  |                 |  |       |           |  |  |                 | 
|Total Audit Fees    |  |           | 270,000 |  |                 |  | 78.8  |           |  |  | 275,000         | 
|Tax Fees:           |  |           |         |  |                 |  |       |           |  |  |                 | 
|Planning and advice |  |           | 57,727  |  |                 |  | 15.3  |           |  |  | 45,101          | 
|Compliance          |  |           | 14,612  |  |                 |  | 5.9   |           |  |  | 32,566          | 
|Total Tax Fees      |  |           | 72,339  |  |                 |  | 21.2  |           |  |  | 77,667          | 
|Total Fees          |  |           | 342,339 |  |                 |  | 100.0 |           |  |  | 352,667         | 



9







Tax Fees





Tax fees were for tax compliance, tax advice
and tax planning professional services. These services consisted of: tax compliance including the review of tax returns, and tax
planning and advisory services.



PRE-APPROVAL OF AUDIT AND NON-AUDIT SERVICES
PROVIDED BYINDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM



It is within the mandate of the Registrant’s
Audit Committee to approve all audit and non-audit related fees and accordingly 100% of the Audit Fees, Audit-Related Fees, Tax
Fees and All Other Fees were approved by the Audit Committee. The charter of the Audit Committee requires the Audit Committee to
review and approve the engagement of the external auditors to perform non-audit services, together with the fees therefore, and
the impact thereof, on the independence of the external auditors.



The Registrant’s Audit Committee has
implemented a policy restricting the services that may be provided by the Registrant’s auditors and the fees paid to the
Registrant’s auditors. Prior to the engagement of the Registrant’s auditors to perform both audit, and non-audit services,
the Audit committee pre-approves the provision of the services. In making their determination regarding non-audit services, the
Audit Committee considers compliance with the policy and the provision of non-audit services in the context of avoiding an adverse
impact on auditor independence. All audit and non-audit fees paid to KPMG LLP, for the financial year ended December 31, 2016,
were pre-approved by the Registrant’s Audit Committee and none were approved on the basis of the de minimis exemption set
forth in Rule 2-01(c)(7)(i)(C) of Regulation S-X. Based on the Audit Committee’s discussions with management and the independent
auditors, the Audit Committee is of the view that the provision of non-audit services by KPMG LLP described above is compatible
with maintaining the firm’s independence from the Registrant.



OFF-BALANCE SHEET ARRANGEMENTS



The Registrant currently has no off-balance sheet arrangements.



10







TABULAR DISCLOSURE OF CONTRACTUAL OBLIGATIONS



The following table lists as of December 31,
2016, information with respect to the Registrant’s known contractual obligations in Canadian dollars:



|                                    |  | Less than |             |   | 1 to 3 |   |             | 4 to 5 |  |   | After 5     |  |  |       |          
|----------------------------------- |  | --------- | ----------- | - | ------ | - | ----------- | ------ |  | - | ----------- |  |  | ----- | ---------
|                                    |  | 1 Year    |             |   | Years  |   |             | Years  |  |   | Years       |  |  | Total |          
|Operating lease obligations         |  | $         | 157,998     |   |        | $ | 456,354     |        |  | $ | 465,744     |  |  | $     | 545,559  
|Gahcho Kué Diamond Mine commitments |  |           | 22,539,444  |   |        |   | -           |        |  |   | -           |  |  |       | -        
|Trade and other payables            |  |           | 16,115,963  |   |        |   | -           |        |  |   | -           |  |  |       | -        
|Loan facility - Principal*          |  |           | 33,286,991  |   |        |   | 261,549,181 |        |  |   | 147,452,601 |  |  |       | 3,487,627
|Loan facility - Interest            |  |           | 32,617,000  |   |        |   | 44,743,300  |        |  |   | 14,617,200  |  |  |       | 69,900   
|Sunk cost repayment - principal     |  |           | 10,000,000  |   |        |   | 24,400,000  |        |  |   | -           |  |  |       | -        
|Sunk cost repayment - interest      |  |           | -           |   |        |   | 25,800,000  |        |  |   | -           |  |  |       | -        
|Interest Rate Swap Contracts:       |  |           |             |   |        |   |             |        |  |   |             |  |  |       |          
|Outflows                            |  |           | 2,397,642   |   |        |   | 98,087      |        |  |   | 7,719       |  |  |       | -        
|Forward Exchange Contracts**:       |  |           |             |   |        |   |             |        |  |   |             |  |  |       |          
|(Inflows)                           |  |           | (10,547,404 | ) |        |   | -           |        |  |   | -           |  |  |       | -        
|Outflows                            |  |           | 11,377,495  |   |        |   | -           |        |  |   | -           |  |  |       | -        
|                                    |  | $         | 117,945,129 |   |        | $ | 357,046,922 |        |  | $ | 162,543,264 |  |  | $     | 4,103,086



*In accordance with the terms of the Loan
Facility at March 31, 2017, the Company is subject to maintaining a cash call reserve account balance in the amount of approximately
US$27.9 million. As of March 27, 2017, the lenders have provided a waiver indicating the amount is now to be funded by May 31,
2017. Under the terms of the Loan Facility Agreement, the Company is also required to fund reserve accounts estimated (Note 9
of the financial statements) of US$100.1 million in September 2017, and additional amounts of US$50.9 million and US$14.4 million
at December 31, 2017 and March 31, 2018, respectively.



**The foreign exchange contracts inflows and
outflows have been signed with the syndicate of lenders. In the scenario where one or more of these lenders are unable to pay,
the Company could be exposed to the outflow of agreed upon funds for the remaining contracts at that time. Any offsetting would
be at the discretion of the lenders. The Company believes it has no significant credit risk.



For further information on the tabular disclosure
of contractual obligations, see page 24 of the management’s discussion and analysis of financial condition and results of
operations for the year ended December 31, 2016 of the Registrant, incorporated by reference and included herein as Exhibit
99.2 of this annual report on Form 40-F.



COMPLIANCE WITH NASDAQ

CORPORATE GOVERNANCE RULES



The Company’s common shares are quoted
for trading on the NASDAQ under the symbol “MPVD”. NASDAQ Rule 5615(a)(3) permits a foreign private issuer to follow
its home country practice in lieu of the NASDAQ corporate governance requirements if such issuer, amongst other requirements, makes
appropriate disclosure in its annual report filed with the SEC relating to each requirement of Rule 5600 that it does not follow
including a brief statement of the home country practice it follows in lieu of such Nasdaq corporate governance requirements



The Registrant has reviewed the NASDAQ corporate
governance requirements. Except as described below, the Registrant is in compliance with the NASDAQ corporate governance standards
in all significant respects:



Approval of Equity Compensation Plans



Section 5635 the NASDAQ
Marketplace Rules requires shareholder approval to be obtained in connection with the undertaking of certain actions. The circumstances
under which shareholder approval is required under the NASDAQ Marketplace Rules are not identical to the circumstances under which
shareholder approval is required under Canadian and Toronto Stock Exchange (the “TSX”) requirements. For example, but
without limitation, Section 5635 requires shareholder approval of most equity compensation plans and material revisions to such
plans. This requirement covers plans that provide for the delivery of both newly issued and treasury securities. The TSX rules
provide that only the creation of or certain material amendments to equity compensation plans that provide for new issuances of
securities are subject to shareholder approval. The Registrant follows the TSX rules with respect to the requirements for shareholder
approval of potential transactions, including, without limitation, shareholder approval of equity compensation plans and material
revisions to such plans.



11







Compensation Committee Independence



The Registrant has elected not to follow Section
5605(d) NASDAQ Marketplace Rules applicable to charters and independence of Compensation Committee members and advisors for United
States domestic issuers. As a foreign private issuer, the Registrant is not required to comply with these rules and follows the
TSX rules.



Further information about the Registrant’s
governance practices is included on the Registrant’s website at www.mountainprovince.com.



MINE SAFETY DISCLOSURE



Not applicable.



UNDERTAKING



The Registrant undertakes to make available,
in person or by telephone, representatives to respond to inquiries made by the Commission staff, and to furnish promptly, when
requested to do so by the Commission staff, information relating to: the securities registered pursuant to Form 40-F; the securities
in relation to which the obligation to file an annual report on Form 40-F arises; or transactions in said securities.



CONSENT TO SERVICE OF PROCESS



The Registrant filed an Appointment of Agent
for Services of Process and Undertaking on Form F-X with the Commission on March 28, 2017, which is hereby incorporated by reference,
with respect to the class of securities to which the obligation to file this annual report on Form 40-F arises.



ADDITIONAL INFORMATION



Additional information relating to the Registrant
may be found on the System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com and on the Commission’s
Electronic Data Gathering, Analysis and Retrieval (EDGAR) system at www.sec.gov.





12







SIGNATURES



Pursuant to the requirements of the Exchange
Act, the Registrant certifies that it meets all of the requirements for filing on Form 40-F and has duly caused this annual report
to be signed on its behalf by the undersigned, thereto duly authorized.



DATEDthe 28thday of March, 2017.



MOUNTAIN PROVINCE DIAMONDS INC.
(Registrant)



|By:                 | /s/ PATRICK EVANS | 
|------------------- | ----------------- | 
|Name: Patrick Evans |                  



13







EXHIBIT INDEX



|EXHIBIT |  | DESCRIPTION OF EXHIBIT                                                                                                                                                                                                                                                                                                                                                                           
|------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|99.1    |  | The Registrant’s Annual Information Form for the fiscal year ended December 31, 2016                                                                                                                                                                                                                                                                                                             
|99.2    |  | Management’s Annual Report on Internal Control Over Financial Reporting, Audited Consolidated Financial
Statements for the fiscal year ended December 31, 2016, Independent Auditors’ Report on the Consolidated Financial Statements
and Independent Auditors’ Report on Internal Control Over Financial Reporting and Management's Discussion and Analysis for
the year ended December 31, 2016
|99.3    |  | Certification by the Chief Executive Officer of the Registrant pursuant to Rule 13a-14(a) or 15d-14 of the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                                                    
|99.4    |  | Certification by the Chief Financial Officer of the Registrant pursuant to Rule 13a-14(a) or 15d-14 of the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                                                    
|99.5    |  | Certification by the Chief Executive Officer of the Registrant pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                          
|99.6    |  | Certification by the Chief Financial Officer of the Registrant pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                          
|99.7    |  | Consent of KPMG LLP, Independent Registered Public Accountants                                                                                                                                                                                                                                                                                                                                   
|99.8    |  | Consent of Daniel Johnson, P. Eng, in connection with the Technical Report “Gahcho Kué Project:, 2014 Feasibility Study; NI 43-101 Technical Report” as Amended May 27, 2014, with effective date March 31, 2014”                                                                                                                                                                                
|99.9    |  | Code of Ethics and Business Conduct                                                                                                                                                                                                                                                                                                                                                              



14