Peregrine Diamonds Ltd. PGDIF

RE:RE:Summer 2017 Drill Program

[Kidlapik]

No one is going to believe me but whatever. I was sitting next to two of the drillers waiting for a plane out of Iqaluit in the summer. They were talking about the site. I talked with them a bit just casually asking what they did and how it was going and they mentioned they were upset because they lost a few holes because the scientiests took too long collecting samples and it froze. One of the issues with drilling in the arctic is dealing with the permafrost layer. For residential housing if we do not have a recent geotech report for where we are installing piles we usually go a minimum of 30m into the ground to ensure we can anchor to the permafrost layer. For them, since they are going so deep, they run into issues with the water they are pumping down their freezing around their drill when they stop moving. That and the usual drill getting stuck issues. It is not an easy place to drill and even when just drilling holes of 30-50m for residential piles I have seen/heard of drills getting stuck or having to be abandoned routinely.