Peregrine Diamonds Ltd.

Peregrine Provides Chidliak Bulk Sample Update and Commences Summer 2015 Diamond Resource Development Program35 minutes ago by Marketwire Canada

Peregrine Diamonds Ltd. ("Peregrine" or the "Company") (TSX:PGD) is pleased to provide an update on its 100 percent-owned Chidliak diamond project ("Chidliak" or the "Project"). Chidliak is located 120 kilometres northeast of Iqaluit, the capital of Nunavut, Canada. Peregrine's 2015 field work program is focused on continued expansion of the Chidliak diamond resource. A recently completed independent review by Mineral Services Canada Inc., the Company's external Qualified Person, has highlighted an approximate one million tonne resource expansion opportunity for the CH-6 kimberlite. Both the resource expansion at CH-6 and the scale of the maiden resource declaration at CH-7 are contingent on the implementation of limited key additional exploration and evaluation work, which is underway and results of the 2015 CH-7 bulk sample. Existing drillcore from CH-6 and CH-7 is currently being sampled to improve geological and microdiamond characterization of certain kimberlite units, and similar sampling will occur throughout approximately 1,200 m of new core to be drilled at CH-6 and CH-7 during the summer 2015 work program. Successful integration of the core sampling results with the 2015 bulk sample results will enable the Company to maximize the Inferred Resource estimates for both CH-6 and CH-7. The revised Inferred Resource base will be included in a planned Preliminary Economic Assessment on a potential Phase 1 diamond mine development at Chidliak, expected in the second quarter of 2016.

2015 BULK SAMPLE UPDATE

The 2015 bulk sample program consisted of six large-diameter drill holes drilled to a maximum depth of 240 metres at CH-7, and the airlift of 558.5 wet tonnes of screened CH-7 kimberlite to secure storage facilities in Iqaluit. Since processing capacity at the Dense Media Separation ("DMS") plant of the Saskatchewan Research Council ("SRC") could not be secured until early August 2015, the Company suspended plans to airlift a portion of the CH-7 bulk sample to Saskatoon in June. The entire bulk sample is scheduled for transportation by sealift and road to the SRC. The first sealift is expected to depart Iqaluit on or about July 26, and the SRC is scheduled to commence bulk sample processing through its ten tonne per hour DMS plant in mid August.

The Company expects processing of the CH-7 bulk sample to a concentrate to be completed on or before November 15, 2015. Diamond recovery is expected to be completed by early December with initial diamond grade results being released shortly thereafter. Independent diamond valuation results are expected early in the first quarter of 2016.

SUMMER 2015 PROGRAM

Mineral Services Canada Inc. and the Peregrine technical team have recently completed a review of the current Inferred Resource and Target For Further Exploration ("TFFE") at CH-6, and the TFFE for CH-7. Incorporation of the 2014 Diamond Resource Development program results and the spatial distribution of 2015 bulk samples from CH-7, has highlighted opportunities to further constrain geological and grade continuity within key kimberlite units through the implementation of limited additional exploration work. This could lead to significant potential increases of contiguous tonnage and grade domains at the two kimberlites. The planned summer 2015 Diamond Resource Development program is focused on proving up these resource expansion opportunities ahead of the planned 2016 Preliminary Economic Assessment.

The planned summer 2015 work program is comprised of the following four key elements:

--  Sampling of Existing CH-6 Core. Expand microdiamond and ancillary data
    sets for the southern, northern and at-depth portions of CH-6 by
    collecting some 700 kilograms of representative samples from six
    previously drilled core holes. This work is currently in progress and
    will utilise drill core stored at the Chidliak site.
--  CH-6 Core Drilling. Extend known geological and grade continuity in the
    southern portion of CH-6 currently classified as TFFE by drilling two
    near-vertical core holes, with each hole extending to 260 metres depth.
    Representative microdiamond samples will be collected along the length
    of both holes.
--  Sampling of Existing CH-7 Core. Expand microdiamond and ancillary data
    sets for the KIM-2, KIM-3 and KIM-4 domains at CH-7 by collecting some
    1,200 kilograms of representative samples from eleven previously drilled
    core holes. This work is currently in progress and will utilise drill
    core stored at the Chidliak site.
--  CH-7 Core Drilling. Extend known geological and grade continuity in the
    southern portion of CH-7, underlain primarily by unit KIM-2, by drilling
    three near-vertical core holes, with each hole extending to 220 metres
    depth. Representative microdiamond samples will be collected along the
    length of the holes.

Successful integration of the summer 2014, winter 2015 and summer 2015 Diamond Resource Development results could add approximately one million tonnes and 2.5 million carats above 250 meters, to the Inferred Resource at CH-6. Assuming successful integration of the results from CH-7, the Company's objective is to declare a maiden Inferred Resource for CH-7 in the first quarter of 2016. The 2015 CH-7 bulk sample results will be used to determine the diamond grades for units KIM-2, KIM-3, KIM-4 and KIM-5.

In addition to the Diamond Resource Development program, the Summer 2015 program will include continuing environmental baseline studies. The total budget is estimated at $3.75 million.

Dr. Herman Grutter, Professional Geologist and Peregrine's Vice President, Technical Services, is a Qualified Person and is responsible for the design of the Diamond Resource Development 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 bulk sampling programs at Chidliak.

Dr. Grutter and Mr. O'Connor have reviewed this release and approve of its contents.

CHANGE TO BOARD OF DIRECTORS

Peregrine Diamonds Ltd. has accepted the resignation of Mr. Gordon Keep from its Board of Directors. Mr. Keep, who has resigned due to increased professional commitments, has been a director of the Company since it went public in 2005. Peregrine would like to sincerely thank him for his significant contributions to the growth of Peregrine and to the operating of the Board of Peregrine.

Peregrine's Board of Directors now consists of six members, Mr. Eric Friedland, Executive Chairman and the following five non-executive directors: Robert Boyd, Alan Carter, Richard Cohen, Myron Goldstein and Peter Meredith.