Peregrine Announces $10-Million Financing

Peregrine Announces $10-Million Financing 
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 10/25/12 -- Peregrine
Diamonds Ltd. ("Peregrine" or "the Company") (TSX:PGD) is pleased to
announce a $10-million financing with both Newstar Securities SRL
("Newstar"), a company wholly owned by Robert Friedland, and with
Dundee Corporation ("Dundee"). 
Under the terms of the financing, Newstar will purchase 16.4 million
shares and Dundee will purchase 3.6 million shares of Peregrine from
treasury, for a total of 20 million shares, priced at $0.50 per
share, for total net proceeds of $10-million. The shares have a four
month hold period. Taking into account this financing, Newstar will
own 13.20 percent and Dundee will own or control 18.14 percent of
Peregrine on an undiluted basis, including shares held in managed
Eric Friedland, Peregrine's CEO, said "We are delighted to have
Robert Friedland join Ned Goodman as a significant strategic
shareholder of Peregrine. Robert and Ned are two of the best mining
financiers in the world and they will provide invaluable support as
we continue to move forward with De Beers to confirm a diamond mine
at Chidliak. This financing should provide Peregrine with the
necessary working capital to fund its administrative costs and
currently planned exploration initiatives through mid 2014, including
the $2.5-million payment due to BHP Billiton in that year." 
The financing is expected to close this week and is subject to TSX
About Peregrine Diamonds 
Peregrine Diamonds is a diamond exploration and development company
focussed on Canada's North. Peregrine has discovered two new diamond
districts in Nunavut, Nanuq in 2007 and Chidliak in 2008. At its 72
percent owned, nine hectare DO-27 kimberlite in the Northwest
Territories, located only 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. At
its 100 percent-owned Chidliak project, located 120 kilometres from
Iqaluit, the capital of Nunavut, the Company has discovered 61
kimberlites to date, and is preparing to collect the first bulk
samples from up to 6 kimberlites that exhibit economic diamond minin
potential. Peregrine also continues to evaluate earlier stage diamond
exploration projects it controls in Nunavut and the Northwest
Forward-Looking Statements: This news release contains
forward-looking statements. 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
exercise of the option to joint venture by De Beers, the proposed
exploration programme, funding availability, anticipated exploration
results, resource estimates 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 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 the exercise of the option to joint venture by De Beers,
availability and cost of funds, timing and content of work
programmes, results of exploration activities, interpretation of
drilling results and other geological data, world diamond markets,
future diamond prices, 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 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.
Peregrine Diamonds Ltd.
Mr. Eric Friedland
Peregrine Diamonds Ltd.
Mr. Brooke Clements
Peregrine Diamonds Ltd.
Mr. Tom Peregoodoff
Executive VP, Business Development
Peregrine Diamonds Ltd.
Investor Relations
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