U2 Permitting Status

The project description prepared to support a Provincial environmental assessment process for the U2 bulk sample was available for comment until February 10, 2014. Metalex was advised by the Ontario Ministry of Natural Resources that an environmental group provided comments including a request that the government conduct a regional environmental assessment that would include our project area.

The Ontario Ministry of the Environment will now determine whether this request has merit. Metalex has been advised by the government, that this process will not be complete in time for the project to commence during this winter road season. Unfortunately the bulk sample will now be delayed.

First Nations

Metalex continues to work with the Attawapiskat and Marten Falls First Nations to complete an exploration agreement for the proposed bulk sample.

U2 Profile

The U2 kimberlite pipe is a highly prospective diamond development project located in the James Bay Lowlands of Ontario, near De Beers' Victor Mine. Diamonds recovered from the U2 pipe are of exceptional quality - with 88.8% by weight of the +1.7mm diamonds being white and 1.1% being colored. The large size of the U2 pipe shows the potential to host a substantial tonnage.

Quebec Drill Program

On the Company's claims near the town of Wemindji in Quebec several anomalies have been defined by the recent ground geophysical program which included gravity, magnetic and electromagnetic techniques. These anomalies lie directly up ice of heavy mineral samples which were found to contain G10 garnets and other indicators of diamond inclusion composition.

A permit application for the drill program has been submitted and once permission is received the Company intends to commence a core drilling program to test these priority anomalies.

Hg

Approximately 10 diamond drill holes are planned to evaluate the shallow portion (0-50m vertical depth) of the Jubilee Zone along a strike distance of 125 metres. Diamond drill results from previous project operators (Table 1) in conjunction with historical sampling results from the open cut and underground drift (Table 2) broadly outlines a shallow zone of gold mineralization (Figure 1: http://www.manitougold.com/_resources/maps/0226-Figure_1.jpg).

Table 1. Historic drilling

DDH
Au g/t
Width (m)

E-06-16
5.3
3.8

98-08
14.0
4.4

98-09
4.1
8.8

98-06
3.9
5.9

DDH-1*
5.1
1.8

DDH 4*
4.5
4.8

DDH-5*
6.5
4.4

DDH-9*
6.3
1.8

Table 2. Historic sampling from underground workings

Au g/t
Width (m)
Length (m)

Open Cut North*
11.3
2.8
37.5

Open Cut South*
5.4
2.5
44.2

North Drift*
2.2
4.2
32.2

2.7
2.9
29.0

South Drift*
5.4
4.6
81.7

3.4
2.8
29.0

4.1
2.3
30.2

*
Historical data in Tables 1 and 2 not verified by Manitou

The company was able to re-log and re-assay the drill core from the past project operators' drill programs (1998, 2004, 2006 and 2008) and has established a high level of confidence in these results. The sampling results from the open cut and underground drift were extracted from historical records which the Company has not attempted to duplicate at this time. The upcoming drill program will provide a substantially higher density of drilling in order to increase the level of confidence in this prospective area of gold mineralization. Additional holes along strike and at depth will be considered pending the results of the initial holes.

During the 2013 summer exploration season the Company completed a Soil Gas Hydrocarbon (SGH) survey over portions of the Elora and Kenwest properties. The SGH survey identified two robust anomalies which both ranked 5.5 out of 6.0 (as interpreted and rated by Activation Laboratories Ltd.). The first anomaly is located approximately 500 metres southwest of the Jubilee zone in an area with little past exploration work. (Figure 2: http://www.manitougold.com/_resources/maps/0226-Figure_2.jpg). The second SGH anomaly is located between the Jubilee Shear and the Big Master #1 Shear on the Overlook Shear Zone. Both SGH anomalies are proximal to the historical patent property boundary which is believed to have been a hindrance to previous exploration efforts.

Several short holes are planned for the Big Master #2 high grade area where drilling in the past by the Company intersected numerous very shallow, high grade gold intersections (Table 3) including a spectacular intersection of 53,700 g/t Au over 0.55 m in drill hole KW-11-26. Several shallow holes are planned to trace this high grade gold occurrence to surface. The high gold content and shallow position may provide the company with an opportunity to recover this gold in a low cost low volume extraction.

Table 3:

DDH
From m
To (m)
Length (m)
Au g/t

KW-11-26
55.3
63.7
8.5
3497.0
uncut

KW-11-26
55.3
63.7
8.5
4.9
cut to 50 g/t

including
55.9
56.5
0.6
53700.0

KW-11-46
29.9
38.9
9.0
26.9

including
29.9
30.5
0.7
316.0

KW-11-48
72.5
77.0
4.5
7.0

including
72.5
74.2
1.7
14.2

KW-11-50
36.2
37.0
0.8
12.0

KW-11-51
45.0
46.2
1.2
4.4

KW-11-52
53.3
63.8
10.5
2.1

KW-11-53
75.7
82.5
6.8
8.4

including
75.7
76.5
0.8
35.0

KW-11-54
94.5
101.0
6.5
8.4

including
94.5
95.6
1.1
35.7

KW-11-55
32.7
41.0
8.4
4.7

including
34.5
35.0
0.5
67.1

KW-11-56
49.7
57.3
7.6
1.1

KW-11-57
62.8
70.3
7.5
1.3

KW-11-59
80.0
85.5
5.5
1.7

KW-11-60
69.7
77.0
7.3
3.4

including
70.6
71.5
1.0
13.0

KW-11-61
53.0
61.0
8.0
2.0

KW-11-62
58.5
66.8
8.3
2.6

KW-11-63
58.5
64.9
6.4
1.4

Todd Keast, President and CEO of Manitou commented, "The upcoming drill program will test a number of quality, shallow targets that we have developed over the past few months. Manitou is focused on identifying near-surface, high grade gold mineralization. With approximately $1.4 million of cash on hand and an excellent portfolio of past-producing gold projects, the Company is uniquely positioned to add shareholder value".

Todd Keast, P. Geo., is the Qualified Person as defined under NI 43-101 who has reviewed and is responsible for the technical information presented in this news release.

Manitou is a Canadian exploration company with a 150 square kilometre land package of highly prospective gold properties located in the historical Gold Rock District, in Northwestern Ontario. This under-explored area has a very attractive geological setting hosting 61 known gold occurrences including three past producing mines (Big Master, Laurentian and Elora). Until recently, the area has remained relatively untouched by modern-day exploration, pointing to excellent discovery potential over this large land package.

For further details about the Company's projects please visit the Manitou website at www.manitougold.com.

regards, Hg

The diamond valuation was undertaken in Antwerp, Belgium by WWW International Diamond Consultants ("WWW"), an international diamond valuation and consultancy company. Diamond prices were determined using their February 24, 2014 price book and their proprietary price modelling techniques which predict the average price per carat in a mine production scenario. Through its partnership in Diamonds International Canada Ltd., WWW performs the Canadian federal and provincial government diamond valuations for the four producing diamond mines in Canada and has been working with Canadian diamond production since 1998.

Mr. Richard Wake-Walker, co-founder of WWW stated, "The shape, colour and size distribution profiles of this parcel compare very well with current Canadian diamond production. It is very encouraging to see such high quality goods from a relatively small parcel and at such an early stage in the project."

Mr. Eric Friedland, CEO of Peregrine stated, "The results of the first diamond valuation from Chidliak are spectacular. The average price per carat and grade of this bulk sample clearly show that CH-6 could have rock value that is comparable with the richest kimberlites currently being mined. These results establish Chidliak as a world class diamond district. We are more confident than ever that planned bulk sampling beginning in 2015 of other known pipes at Chidliak with economic potential could lead to the development of Baffin Island's first diamond mine." http://www.pdiam.com/s/Ch-6-Bulk-Sample-Photo-Gallery.asp.

CH-6 DIAMOND VALUATION

As reported on January 16, 2014, Peregrine recovered a 1,042.1 carat parcel of commercial-size (+1.18 mm) diamonds from a bulk sample weighing 404.2 dry tonnes collected from the CH-6 kimberlite by trenching in early 2013. Prior to shipping the parcel to Antwerp, the diamonds were sieved into Diamond Trading Company ("DTC") size classes, with the +3 DTC sieve size approximating the +1.18 mm square mesh sieve size. DTC sieve classes are the worldwide diamond size classification standard for the diamond industry. After sieving, the parcel weighed 1,020.7 carats for +3 DTC diamonds. After cleaning by deep acid boiling in Antwerp, the parcel weighed 1,013.5 carats. Minor weight loss in a diamond parcel is common after cleaning. Photos of CH-6 diamonds are available at:

WWW determined the modelled prices for the 1,013.5 carat parcel using proprietary statistical methods that predict the recovery rate and price of each size class of diamonds in potential future run of mine production. Data used for the modelling included diamond size frequency distribution, market prices for each size class, and estimated market prices for larger diamonds that would be recovered in a production scenario but were not fully represented in this parcel.

The diamond valuation was monitored by Dr. Jennifer Pell, Peregrine's Chief Geoscientist and Qualified Person for diamond valuations. The following table summarizes the results of the valuation.

SUMMARY OF CH-6 KIMBERLITE DIAMOND VALUATION

SAMPLE GRADE
TOTAL CARATS
VALUED
(+3 DTC)
PARCEL VALUE
PRICE
BASE CASE MODELLED PRICE
MINIMUM MODELLED
PRICE
HIGH
MODELLED PRICE

2.58 CPT
1,013.5
US$215,605
US$213
US$188
US$162
US$236

Because the four largest diamonds have exceptionally high values, the actual price was higher than the base case modelled price. Mr. Neil Buxton, responsible for geostatistical modelling at WWW stated "Based on our analysis of the parcel, WWW believes that if CH-6 were in production in the current diamond market, it is highly unlikely that the average price would be lower than the minimum modelled price. It is also important to understand that the high modelled price does not represent a maximum price and that the ultimate average diamond price in a mine production scenario could be higher than US$236 per carat. Given the number of large stones in this parcel, and their relatively high value, even the high modelled price may be considered conservative."

The 13 diamonds larger than three carats in size accounted for five percent of the weight of the 1013.5 carat parcel and 43 percent of the parcel value. This weight/value profile is consistent with producing diamond mines in the world.

Following are descriptions and market prices for five diamonds from the parcel, including the four largest stones:

• 8.87 carat sawable, white/colourless transparent octahedron with minor inclusions: US$36,158 (US$4,076 per carat)


• 5.83 carat sawable, white/colourless transparent octahedron with minor inclusions: US$20,143 (US$3,455 per carat)


• 4.62 carat sawable, off-white transparent octahedron: US$13,5688 (US$2,937 per carat)


• 4.11 carat sawable, white/colourless transparent octahedron with minor inclusions: US$10,650 (US$2,591 per carat)


• 1.22 carat sawable, white/colourless elongated octahedron: US$2,378 (US$1,949 per carat)

Following are some additional comments from WWW. Overall the sample valued by WWW presented well in terms of quality, colour and shape and the diamonds should hold up well in the cutting and polishing process. For a parcel just over 1,000 carats in size, there were a good range of categories, and those that were not prevalent tended to be the less desirable types, such as cubes, coated, browns and boart. In the size range from 3 grainers (>0.66 carats) to 9 carats, sawables and makeables accounted for 48 percent of the parcel weight, 35 percent sawable and 13 percent makeable. The high percentage of sawables is positive in terms of pricing as they provide a higher polished yield than all other catergories. The parcel contained a number of yellow diamonds. None of these were fancy yellow, but the depth of colour indicates that fancy yellow diamonds may be found in a production scenario.

2014 CH-6 RESOURCE STATEMENT

Geostrat Consulting Services Inc. will utilize the diamond grade and +3 DTC diamond value information from the CH-6 bulk sample and geologic and diamond content information from core drill programs completed in 2009, 2010 and 2011 to complete an initial, NI 43-101 compliant resource statement for CH-6 by the end of the second quarter. This work is the first important step towards establishing economic viability for the Project. More information on CH-6 and the adjacent "String of Pearls", which includes the CH-10 and CH-20 kimberlites, is available at http://www.pdiam.com/i/pdf/FEB_26_2014_VALUATION__News_Release_PPT.pdf.

Mr. Alan O'Connor, Professional Geologist, Peregrine's Program Manager, Resource Evaluation, is a Qualified Person under National Instrument 43-101 and was responsible for the design and conduct of the CH-6 bulk sampling program carried out by the Company at Chidliak in 2013. Mr. Howard Coopersmith, a Professional Geologist and an independent consultant to the diamond industry, was Peregrine's, independent, external Qualified Person for sample processing and diamond recovery for the 2013 CH-6 bulk sample. Dr. Jennifer Pell, Professional Geologist and Peregrine's Chief Geoscientist was Peregrine's internal Qualified Person for the diamond valuation. Mr. David Farrow, a Professional Geologist, of Geostrat Consulting Services Inc., and an independent, external Qualified Person and a consultant to Peregrine, reviewed and verified the CH-6 geological model and tonnage estimate and is the consultant that has been engaged to prepare the resource estimate for CH-6.

Messrs. O'Connor, Coopersmith, Farrow and Ms. Pell have reviewed this release and approve of its contents. Messrs. Wake-Walker and Buxton of WWW have also reviewed this relase and approve of its contents.

ABOUT PEREGRINE DIAMONDS

Peregrine is a diamond exploration and development company focused on Canada's North. The Company has discovered two new diamond districts in Nunavut, Nanuq in 2007 and Chidliak in 2008. At its 100 percent-owned Chidliak project, located 120 kilometres from Iqaluit, the capital of Nunavut, 67 kimberlites have been discovered to date with at least seven being potentially economic.

At its 72 percent-owned, nine hectare DO-27 kimberlite in the Northwest Territories, located 27 kilometres from the Diavik Diamond Mine, a NI 43-101 compliant 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, which is open at depth, was confirmed in 2008. Peregrine also continues to evaluate earlier stage diamond exploration projects it controls in Nunavut and the Northwest Territories and through comprehensive evaluation of its extensive and proprietary diamond exploration databases, is working towards discovering additional new diamond districts in North America. A key asset being utilized in Peregrine's search for a new Canadian diamond district is a proprietary database acquired from BHP Billiton that contains data from approximately 38,000 kimberlite indicator mineral samples covering approximately three million square kilometres of Canada.

regards, Hg

Also in connection with the Transfer Agreement, the Corporation and the Vendor have agreed to enter into the following net smelter return royalty (the "NSR Royalty") agreements (collectively, the "Royalty Agreements") in respect of mineral production from the Gaffney Property, the mineral claims known as the Gaffney Extension Property (collectively, the "Purchaser Property") and certain additional mineral claims located in the vicinity (collectively, the "Purchaser Option Claims") which are the subject of an option in favour of the Corporation pursuant to the option agreement between the Corporation, David Healey and Karl Bjorkman dated January 31, 2011 (the "Option Agreement"), as applicable:

1. an NSR Royalty agreement pursuant to which the Vendor retains a 2% NSR Royalty on the Gaffney Property with no right of buyout;


2. an NSR Royalty agreement pursuant to which the Corporation will grant to the Vendor a 0.125% NSR Royalty on the Purchaser Property (excluding the Purchaser Option Claims), with no right of buyout; and


3. an NSR Royalty agreement pursuant to which, conditional on the exercise by the Corporation of its option to acquire a 100% interest on the Purchaser Option Claims, among other things, the Corporation will grant to the Vendor the following:
   
   
   1. a 0.125% NSR Royalty on the Purchaser Option Claims;
   
   
   2. the right to purchase, with or without the Corporation, one half of the 2.5% NSR Royalty retained by the optionors under the Option Agreement (the "Royalty Purchase"), being a 1.25% NSR Royalty on the Purchaser Option Claims or any other properties that may be included as part of the Purchaser Option Claims (the "Purchased Royalty"); pursuant to the Option Agreement, the Royalty Purchase will be made in exchange for a cash payment of $1.25 million to the optionors (the "Cash Payment"), which, if effected by the Corporation and the Vendor, will be payable as follows: 50% by the Vendor and 50% by the Corporation. Upon completion of the Royalty Purchase, the Vendor will be entitled to 50% of the Purchased Royalty, being a 0.625% NSR Royalty, and the Corporation will be entitled to, and shall extinguish, the other 50% of the Purchased Royalty, being a 0.625% NSR Royalty; and
   
   
   3. the right to solely complete the Royalty Purchase in certain circumstances by making 100% of the Cash Payment and thereby receiving 100% of the Purchased Royalty, being a 1.25% NSR Royalty on the Purchaser Option Claims.
   
   
   
   

The Transfer Agreement and Royalty Agreements remain subject to, among other things, the receipt of all applicable regulatory approvals, including the approval of the TSX Venture Exchange.

The Corporation is also pleased to announce that it has adopted a fixed stock option plan (the "2013 Plan") providing for the grant of stock options exercisable to acquire up to an aggregate of 5,384,741 common shares of the Corporation. The 2013 Plan replaces all prior stock option plans of the Corporation, and has been filed under the Corporation's profile on SEDAR at www.sedar.com.

Regards

Hg