Peregrine Provides Update

Peregrine Provides Update 
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 10/23/13 -- Peregrine
Diamonds Ltd. ("Peregrine" or "the Company") (TSX:PGD) today provided
an update on activities at its 100 percent-owned Chidliak diamond
project ("Chidliak" or "the Project"), located on Baffin Island, 120
kilometres from Iqaluit, the capital of Nunavut, Canada.  
After close of business on October 22, Peregrine received written
notice from De Beers Canada Ltd. ("De Beers") of their decision to
not enter into the earn-in and joint venture agreement regarding
Chidliak. This agreement was first announced on September 5, 2012.
The ongoing work and funding commitments that have previously been
made by De Beers will be completed as agreed.  
Mr. Eric Friedland, CEO of Peregrine, stated, "Chidliak has
benefitted greatly from De Beers' involvement over the last year and
we are cognisant of their reasons not to proceed given the
challenging mining market our industry is currently experiencing. Our
team looks forward to advancing Chidliak on a 100 percent ownership
basis and we are fast-tracking the processing of the CH-6 kimberlite
bulk sample collected this spring with initial diamond content and
valuation results anticipated in January, 2014. The results from CH-6
and new exploration and conceptual mining data generated by De Beers
will be utilized to formulate optimum exploration and sampling
programs for 2014 and 2015." 
Dense media separation ("DMS") processing of the initial 250 tonnes
of material from the CH-6 bulk sample was completed on October 18 at
the De Beers Sudbury, Ontario, laboratory. The resulting concentrate
is now in the process of being transported to the Saskatchewan
Research Council ("the SRC") facility in Saskatoon for final diamond
recovery. Diamond recovery from this first 250 tonne sample is
expected to commence in November with initial diamond content and
valuation results reported in January, 2014. As announced on
September 9, 2013, the cost of processing the first approximately 250
tonnes of bulk sample material and diamond recovery work at the SRC
from the resulting concentrate will be paid for by De Beers as
previously agreed.  
De Beers has also agreed to process the remaining approximately 250
tonnes of the CH-6 bulk sample to concentrate and this work will be
paid for b
y Peregrine at De Beers' actual cost to process. Processing
of this material has commenced and will be completed in November.   
Peregrine and De Beers will be meeting during the first week of
November to complete the handover of all technical and other data as
required by the Option and Subscription agreement signed by the two
companies on September 4, 2012. The data will include the final
results from the 2013 field program, operated by De Beers, including
the total number of new kimberlite occurrences that were discovered,
final geophysical data, kimberlite geologic models, all surfical and
structural mapping data and interpretations. Importantly, all new
kimberlite targets that have been defined by De Beers will be
provided to Peregrine.  
Detailed information regarding plans for the 2014 field season at
Chidliak will be provided in the first quarter of 2014, after receipt
of all the CH-6 diamond valuations and a thorough evaluation of the
new data generated by De Beers this year.  
Mr. Alan O'Connor, Professional Geologist, Peregrine's Chidliak
Project Manager, is a Qualified Person under National Instrument
43-101 and is responsible for the design and conduct of the programs
carried out by the Company at Chidliak, including the collection of
the CH-6 bulk sample. Mr. Howard Coopersmith, an independent
consultant to the diamond industry, is Peregrine's external Qualified
Person for sample processing and diamond recovery. 
Messrs. O'Connor and Coopersmith have reviewed this release 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, 64 kimberlites have been discovered to date,
and Peregrine collected a bulk sample weighing 508 wet tonnes from
the CH-6 kimberlite in 2013 which is currently undergoing processing
for diamond recovery. A 14.11 tonne sample of drill core acquired
from CH-6 in 2010 returned a grade of 2.84 carats per tonne. 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.  
For further information on Peregrine Diamonds, please visit
www.pdiam.com. 
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 the
decision by DeBeers not to exercise the option to joint venture, the
proposed exploration program, 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 decision of DeBeers not to exercise the option to
joint venture, availability and cost of funds, timing and content of
work programs, 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 o
r
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.
Contacts:
Peregrine Diamonds Ltd.
Mr. Eric Friedland
CEO
604-408-8880 
Peregrine Diamonds Ltd.
Mr. Brooke Clements
President
604-408-8880 
Peregrine Diamonds Ltd.
Mr. Tom Peregoodoff
Executive VP, Business Development
604-408-8880 
Peregrine Diamonds Ltd.
Investor Relations
604-408-8880
investorrelations@pdiam.com
www.pdiam.com