Peregrine Reports Diamond Grade of 2.87 Carats Per Tonne from the Final CH-6 Bulk Sample Batch and Four Diamonds Over Four

Peregrine Reports Diamond Grade of 2.87 Carats Per Tonne from the Final CH-6 
Bulk Sample Batch and Four Diamonds Over Four Carats,
Including an 8.87 Carat White/Colourless Octahedron 
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 01/16/14 --  
Peregrine Diamonds Ltd. ("Peregrine" or "the Company") (TSX: PGD) is
pleased to report that bulk sample Batch C, from the CH-6 kimberlite
pipe on Peregrine's 100 percent owned Chidliak Diamond Project
("Chidliak" or "the Project") in Nunavut, Canada, which weighed 182.1
dry tonnes, returned a diamond grade of 2.87 carats per tonne
("cpt"). A total of 523.5 carats of commercial-size (+0.85 mm)
diamonds was recovered, including 42 diamonds one carat or larger and
133 diamonds over 0.50 carat in size. The largest diamond is an 8.87
carat white/colourless octahedron. A significant portion of the
parcel is gem diamonds and a population of yellow stones is present.
Sample Batch C represents the final portion of a bulk sample weighing
404.2 dry tonnes that was collected by trenching the CH-6 kimberlite
in 2013. As reported on December 3, 2013, the first 222.1 tonne
portion of the bulk sample returned a grade of 2.70 cpt. The combined
grade of the 404.2 tonne sample is 2.78 cpt and 1,124 carats of
commercial-size (+0.85 mm) diamonds were recovered. An independent
diamond valuation of the 1,124 carat parcel will be completed this
quarter in Antwerp, Belgium. At a grade of 2.78 cpt, CH-6 is one of
the highest grade kimberlite pipes in the world(i).  
Diamonds of special note described by the Saskatchewan Research
Council ("the SRC") include the following:  

--  8.87 carat white/colourless, transparent octahedron with minor
--  5.83 carat white/colourless transparent octahedron with inclusions 
--  4.62 carat off-white, transparent octahedron 
--  4.11 carat white/colourless, transparent octahedron with minor
--  3.02 carat white/colourless distorted octahedron with minor inclusions 

Photos of diamonds from bulk sample Batch C available at 
Mr. Howard Coopersmith, Peregrine's Independent Qualified Person for
dense media separation ("DMS") processing and diamond recovery
stated, "These latest bulk sample results from the CH-6 kimberlite,
along with the results from the first 222 tonne portion of the
sample, confirm a trend towards high quality diamonds in the larger
size classes and an overall consistency in the diamond population,
size distribution and grade. The independent market valuation of the
1,124 carat parcel, and the modelling of the valuation results,
should allow for preparation of a resource statement for this high
grade kimberlite pipe." 
Mr. Eric Friedland, Peregrine's CEO said, "We are pleased that the
results of the 2013 bulk sample have confirmed that CH-6 is one of
the highest grade kimberlite pipes in the world. We look forward to
the results of the diamond valuations expected later this quarter
given the quality of the entire diamond parcel, especially the stones
a half carat and larger." 
The size distribution, shape and colour of the 90 diamonds one carat
in size or larger from the combined 1,124 carat parcel are described
by the SRC in the following three tables.  

------------------------  ------------------------  ------------------------
------------------------  ------------------------  ------------------------
    Size Class    Number      Octahedra      51%     White/Colourless  36%  
     (Carats)       of                                                      
------------------------  ------------------------  ------------------------
 1"greater than 1   90      Tetrahexahedra    1%        Off-white      36%  
------------------------  ------------------------  ------------------------
       1 2          27        Fragments,     39%          Yellow       11%  
                            Irregulars and                                  
------------------------  ------------------------  ------------------------
 1"greater than 1   11          Macles        9%      Grey and Brown   17%  
------------------------  ------------------------  ------------------------
------------------------  ------------------------  ------------------------

(i)The diamond grade of bulk samples collected from CH-6 as determined
by DMS processing may not be fully representative of the overall
diamond grade of the pipe due to a number of factors including the
limited area and depth from which the trench sample was collected. 
The details of the bulk sample collection from CH-6 were reported on
April 23 and June 3, 2013. The following table summarizes diamond
results from the CH-6 kimberlite.  

                       (dry   Numbers of Diamonds According to Sieve Size   
Batch               tonnes)               Classification (mm)               
                             +0.85  +1.18  +1.70  +2.36  +3.35  +4.75       
                             -1.18  -1.70  -2.36  -3.35  -4.75  -6.70  +6.70
A(ii)                 213.8   2967   3233   1436    595    139     34      0
B(ii)                  8.34    222    135     60     26      3      1      0
C                     182.1   2899   2825   1184    474    125     24      4
TOTAL 2013 Bulk                                                             
 Sample               404.2   6088   6193   2680   1095    267     59      4
2010 Mini-                                                                  
 bulk(iii)            13.77    137    216    108     51     10      1      0
                            Carats     Grade    Carats     (cpt)
                            (+0.85     (cpt)    (+1.18    (+1.18
Batch              Total       mm)(+0.85 mm)       mm)       mm)
A(ii)               8404    578.75      2.71    538.66      2.52
B(ii)                447     21.74      2.61     18.85      2.26
C                   7535    523.46      2.87    484.54      2.66
TOTAL 2013 Bulk                                                 
 Sample            16386   1123.95      2.78   1042.05      2.58
2010 Mini-                                                      
 bulk(iii)           523     40.04      2.91     37.97      2.75
(ii)Diamond results reported on December 3, 2013                            
(iii)The CH-6 mini-bulk sample was processed by DMS and diamond recovery was
completed at the SRC, results were reported on December 6, 2010             

Sample Batch C was processed by DMS at the De Beers processing facility
in Sudbury, Ontario. Diamond recovery was completed at the SRC using
a two stage Flow Sort x-ray sorter, a vibrating grease table recovery
circuit and hand sorting. The De Beers DMS facility is rated at
approximately five tonnes per hour and a 1.00 mm square mesh bottom
screen was utilized. As an element of Peregrine's Quality
Assurance/Quality Control program, 104 numerically laser-etched
natural diamond tracers ranging in size from 0.14 to 1.50 carats were
added to the bulk sample bags comprising Batch C in the field or at
the De Beers DMS processing facility. All of these diamond tracers
were recovered. 
An independent diamond valuation of the 1,124 carat diamond parcel
will be completed by WWW International Diamond Consultants Ltd.
("WWW") this quarter in Antwerp, Belgium. Through it's partnership in
Diamonds International Canada Ltd., WWW performs the government
diamond valuations for the four producing diamond mines in Canada. In
addition to estimating the current market value of the diamond
parcel, WWW will also provide a diamond price model estimate. Diamond
price models estimate the impact larger stones would have on
potential revenue from a mine. These larger stones are typically
underrepresented at this scale of bulk sampling. Prior to the
valuation, the diamonds will be thoroughly cleaned by deep boiling.  
As reported on April 2, 2012, based on the current geological model,
it is estimated that CH-6 hosts 5.7 million tonnes of kimberlite to a
depth of 375 metres below surface. Of the 5.7 million tonnes, 3.6
million tonnes is considered reasonably defined with good drilling
support. The remaining 2.1 million tonnes has been identified with
limited drilling support and the confidence level of this tonnage
will be increased with more drilling. Potential exists to add
significant tonnage at depths below 375 metres. This tonnage estimate
does not constitute a mineral resource and there is no assurance that
a resource will be identified through further exploration work at
A technical report prepared in accordance with NationaI Instrument
43-101 requirements that outlines the CH-6 tonnage estimate is
available on SEDAR and on the Company's website. 
The CH-6 kimberlite is one of 67 kimberlites discovered to date at
Chidliak and it occurs in an area with an eight kilometre radius that
currently hosts five other kimberlites that are potentially economic.
More information on CH-6 and the adjacent "String of Pearls", which
includes the CH-10 and CH-20 kimberlites, is available at 
Peregrine will utilize the diamond grade and value information from
the CH-6 bulk sample and information from core drill programs
completed in 2009, 2010 and 2011 to establish a preliminary revenue
model and declare an initial, NI 43-101 compliant resource for CH-6
in 2014. This work is the first important step towards establishing
economic viability for the Project. Additional work planned for
Chidliak this year includes field work to advance other kimberlites
that are potentially economic, the testing of high priority
geophysical anomalies to discover additional kimberlites in the
vicinity of CH-6 and preparations for a 2015 bulk sampling program.
More detailed information on the 2014 program will be provided by the
end of this quarter. 
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 2013 CH-6 bulk sample. Mr. Howard Coopersmith, a Professional
Geologist and an independent consultant to the diamond industry, is
Peregrine's, independent, external Qualified Person for sample
processing and diamond recovery. Mr. David Farrow, a Professional
Geologist, of Geostrat Consulting Services Inc., an independent,
external Qualified Person and a consultant to Peregrine, reviewed and
verified the CH-6 geological model and tonnage estimate. 
Messrs. O'Connor, Coopersmith and Farrow have reviewed this release
and approve of its contents. 
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 seven being potentially economic. In April 2013, Peregrine
collected a bulk sample weighing 404.2 dry tonnes from the CH-6
kimberlite. The 404.2 tonne sample returned a grade 2.78 cpt for
diamonds larger than the 0.85 mm sieve size. An independent diamond
valuation of the 1,124 carat parcel recovered from the bulk sample
will be completed in the first quarter of 2014. 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.  
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 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 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 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. 
Peregrine Diamonds Ltd.
Mr. Eric Friedland, CEO
Mr. Brooke Clements, President
Mr. Tom Peregoodoff, Executive VP, Business Development
Peregrine Diamonds Ltd.
Peregrine Diamonds Investor Relations
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