VANCOUVER, BRITISH COLUMBIA--(Marketwired - July 26, 2017) -
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Peregrine Diamonds Ltd. (TSX:PGD) ("Peregrine" or "the Company") is pleased to announce the completion of hole CHI-050-17-DD33
("DD33"), a 433-metre long drill hole at its 100%-owned Chidliak Diamond Project ("Chidliak") near Iqaluit, Nunavut, Canada. Hole
DD33 contains a 152-metre long continuous intercept of typical CH-6 kimberlite, significantly more than the 100-metre intercept
predicted by the current CH-6 resource model. The drill result expands the western margin of the CH-6 pipe by approximately 35
metres at a depth of 200 metres below surface ("mbs") and confirms the eastern pipe contact as near-vertical to 330 mbs, as
predicted by the current CH-6 resource model. DD33 continued in country rock and encountered a 0.32-metre open-ended intersection
of olivine-macrocrystic kimberlite at 361 mbs where the hole was lost. Another drill hole is planned to test this kimberlite at
depth from the eastern side of CH-6.
The Company has signed a contract with Vital Drilling Services for the supply of an additional diamond drill rig for the
current program. The drill rig is expected at Chidliak on August 1st and will provide 2,000 to 4,000 metres of
drill capacity to support completion of resource expansion objectives within the 2017 drilling season
Tom Peregoodoff, Peregrine's President and Chief Executive Officer, commented: "We are extremely pleased with this first drill
result that shows that the pipe is expanding with depth. The addition of the third rig will assist in delineating the high grade
CH-6 pipe to depths of 500 metres below surface and to allow for a restated resource estimate to be developed and announced later
in the year."
COMPLETION OF HOLE DD33
As reported on June 19, 2017, the 2017 drilling program at Chidliak aims to further delineate the CH-6 kimberlite, with the
objective of expanding the high grade CH-6 resource to a depth of 500 metres below surface. Core hole DD33 (090 azimuth, -60
inclination) was designed to cross west-east through the centre of the Target for Further Exploration ("TFFE") and to provide a
100-metre long kimberlite intercept based on the current model for the CH-6 pipe shell. Drilling of DD33 commenced on July 9,
2017 and was completed on July 24, 2017, providing a 152.1 metre intersection of continuous, typical olivine-rich CH-6 kimberlite
from 200 to 330 mbs. The kimberlite contact expands the west-east diameter of the CH-6 pipe at 200 mbs from 55 to 90 metres by
displacing the western margin of the pipe some 35 metres to the west. It also confirms the eastern margin of CH-6 is
near-vertical and occurs within 4 metres of that projected by the Company at 330 mbs. The westward expansion of CH-6 is targeted
for confirmation at depth by drill-testing in the 380 to 500 mbs range with drill holes in the planned 2017 program.
Hole DD33 was lost at 433 metre down hole length, at 360.6 mbs and terminated in kimberlite. A 32-centimetre intersection of
slightly altered olivine-macrocrystic kimberlite was logged at the end of the last core barrel retrieved. The nature and
relationship with CH-6, if any, of this deeper kimberlite intersection is unknown at this time. Future deep drilling from the
eastern side of CH-6 will attempt to establish the nature, extent and continuity of this deeper kimberlite intersection.
Tom Peregoodoff, Peregrine's President and Chief Executive Officer, further commented: "This expansion in tonnage potential
has significant implications for the total contained carats within CH-6 and could significantly influence future planned
engineering and development studies. While the significance of the kimberlite intersection at depth is unknown, both results from
this single hole show that the potential of the Chidliak property is far from exhausted."
A cross section of the DD33 drill trace is shown in Figure 1 below.
To view "Figure #1 - Drill Trace - Diamond Drill Hole CHI-050-17-DD33", please visit the following link: http://media3.marketwire.com/docs/Peregrine-Diamonds-Ltd-Figure1.pdf.
In addition to DD33, three other core holes have been initiated since drilling started on July 7, 2017. Two holes have been
abandoned prior to completion due to adverse drilling conditions. At the third hole, the casing has now been set and drilling is
set to resume on July 26, 2017.
$10.28 MILLION RIGHTS OFFERING
As announced on July 10, 2017, Shareholders of record on July 17, 2017 have received one right (a "Right") for each common
share held. Three and three-tenths (3.3) Rights entitles the holder to purchase one common share of the Company
("Common Shares") at a price of $0.10 per Common Share. Shareholders are reminded that the exercise of the Rights and purchase of
the Common Shares must be completed by 2:00 p.m. (Vancouver time) on August 15, 2017 (the "Expiry Date").
Shareholders who fully exercise their Rights are entitled to subscribe pro rata for additional Common Shares, if available,
that were not subscribed for initially on or before the Expiry Date. A fully subscribed Offering will raise gross proceeds of
$10.28 million, of which $10 million is backstopped by way of a standby purchase agreement. The proceeds of the Offering will be
used to complete the remainder of the 2017 Chidliak Diamond Resource Expansion Program and for general corporate purposes and
working capital.
This news release does not constitute an offer to sell, or the solicitation of an offer to buy securities in any jurisdiction
in which such offer or solicitation would be unlawful prior to registration or qualification under the securities laws of such
jurisdiction.
The Rights and the Common Shares have not been and will not be registered under the United States Securities Act of 1933, as
amended (the "Securities Act"), or the securities laws of any state of the United States, and may not be offered or sold in the
United States or to, or for the account or benefit of, any U.S. Person (as defined in Regulation S of the Securities Act) or a
person in the United States, unless an exemption from such registration requirements is available.
QUALIFIED PERSONS
Dr. Herman Grütter, Peregrine's Vice President, Technical Services, is a Qualified Person and is responsible for the design of
the Diamond Resource Expansion Program at Chidliak. Mr. Alan O'Connor, Peregrine's Program Manager, Chidliak Resource Evaluation,
is a Qualified Person and is responsible for the design and conduct of field programs at Chidliak. Dr. Jennifer Pell, Peregrine's
Chief Geologist, is a Qualified Person and is responsible for geological characterization and microdiamond sampling of core
drilled at Chidliak.
Dr. Grütter, Mr. O'Connor and Dr. Pell have reviewed this release and approve of its contents.
ABOUT PEREGRINE DIAMONDS
Peregrine Diamonds is a TSX-listed diamond exploration and development company with assets located in northern Canada and
Botswana.
Peregrine's core asset is its' 100 percent-owned, 413,000-hectare Chidliak Project, located 120 kilometres from Iqaluit, the
capital of Nunavut where 71 kimberlites have been discovered to date with eight being potentially economic. A Preliminary
Economic Assessment ("PEA") of a Phase 1 Diamond Development ("CP1D") has been completed. The PEA highlights that the CP1D
represents a robust, high margin, ten-year, open-pit mining project with very attractive economics, including after tax NPV of
C$471M, IRR of 29.8% and a two-year payback. An Inferred Mineral Resource of 11.39 million carats in 4.64 million tonnes of
kimberlite at an average grade of 2.45 carats per tonne has been defined for a portion of the CH-6 kimberlite. In addition, a
Target for Further Exploration ("TFFE") of 2.34 to 3.75 million tonnes of kimberlite to a depth of 380 metres below surface has
been identified at CH-6. An independent diamond valuation by WWW International Diamond Consultants, of a 1,013 carat parcel of
diamonds from CH-6 returned an average market price of US$213 per carat and modeled prices that range from a minimum of US$162
per carat to a high of US$236 per carat, with a base model price of US$188 per carat (all using the February 24, 2014 price
book). An Inferred Mineral Resource of 4.23 million carats in 4.99 million tonnes of kimberlite at an average grade of 0.85
carats per tonne has been defined for a portion of the CH-7 kimberlite. In addition, TFFE of 0.90 to 2.36 million tonnes for a
depth range of 240-320 metres has been estimated for the CH-7 kimberlite. An independent diamond valuation by WWW International
Diamond Consultants, of a 735.75 carat parcel of diamonds from CH-7 returned an average market price of US$100 per carat and
modelled prices that ranged from a minimum of US$94 per carat to a high of US$155 per carat, with a base model price of US$114
per carat (all using the February 1, 2016 price book). A TFFE of 1.27 to 3.19 million tonnes to 250 metres depth has been
estimated for the CH-44 kimberlite pipe.
Additional details of the Chidliak 2016 PEA are available in a National Instrument ("NI") 43-101 technical report titled
"Preliminary Economic Assessment Technical Report on the Chidliak Project, Nunavut, Canada" and dated effective July 7, 2016,
available on SEDAR and the Company's website.
The Chidliak 2016 PEA is preliminary in nature and includes Inferred Mineral Resources that are considered too speculative
geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves.
Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. There is no certainty that the PEA
will be realized.
The TFFEs identified above are conceptual in nature as there has been insufficient exploration to define a Mineral Resource.
It is uncertain whether further exploration will result in any of these tonnages being delineated as Mineral Resources.
Peregrine holds eleven diamond prospecting licenses in Botswana that cover 661,330 hectares.
Peregrine also controls the 8,493-hectare Lac de Gras Project in the Northwest Territories, located approximately 27
kilometres from the Diavik Diamond Mine. The nine-hectare 72.1%-owned DO-27 kimberlite, located at Lac de Gras, hosts an
Indicated Mineral Resource of 18.2 million carats of diamonds in 19.5 million tonnes of kimberlite at a grade of 0.94 carats per
tonne and it is open at depth.
For information on data verification, exploration information and resource estimation procedures see the NI 43-101 technical
reports entitled "Mineral Resource Estimate for the Chidliak Project, Baffin Island, Nunavut" and dated effective June 3, 2016
and "Peregrine Diamonds Limited DO-27 Diamond Project Northwest Territories, Canada NI 43-101 Technical Report" dated August 7,
2008 which are available on SEDAR and the Company's website.
For further information, please visit www.pdiam.com.
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements within the meaning of Canadian securities legislation. All
statements, other than statements of historical fact, that address activities, events or developments that the Company believes,
expects or anticipates will or may occur in the future including, without limitation, statements relating to future management of
the Company, proposed exploration and development programs, funding availability, anticipated exploration results, grade of
diamonds and tonnage of material, resource estimates, anticipated diamond valuations and future exploration and operating plans
are forward-looking statements. These forward-looking statements reflect the current expectations or beliefs of the Company based
on information currently available to the Company.
Forward-looking statements are made based upon certain assumptions by the Company and other important factors that, if
untrue, could cause the actual results, performances or achievements of the Company to be materially different from future
results, performances or achievements expressed or implied by such statements. Such statements and information are based on
numerous assumptions regarding present and future business strategies and the environment in which the Company will operate in
the future, including the availability and continuation of experienced leadership for the Company, the price of diamonds,
anticipated costs and ability to achieve goals. Certain important factors that could cause actual results, performances or
achievements to differ materially from those in the forward-looking statements include, but are not limited to: receipt of
regulatory approvals; anticipated timelines for community consultations and the impact of those consultations on the regulatory
approval process; market prices for rough diamonds and the potential impact on the Chidliak Project; and future exploration plans
and objectives.
Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the
Company to differ materially from those discussed in the forward-looking statements and, even if such actual results are realized
or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, the
Company. Factors that could cause actual results or events to differ materially from current expectations include, among other
things, uncertainties relating to continuity and availability of executive management, availability and cost of funds, timing and
content of work programs, results of exploration activities, interpretation of drilling results and other geological data, risks
relating to variations in the diamond grade and kimberlite lithologies; variations in rates of recovery and breakage; variations
in diamond valuations and future diamond prices; the state of world diamond markets, reliability of mineral property titles,
changes to regulations affecting the Company's activities, delays in obtaining or failure to obtain required project approvals,
operational and infrastructure risk and other risks involved in the diamond exploration and development business. Any
forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities
laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new
information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the
forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly
undue reliance should not be put on such statements due to their inherent uncertainty.