Peregrine Announces Commencement of 2014 Program at Chidliak

Peregrine Announces Commencement of 2014 Program at Chidliak 
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 03/18/14 --  
Peregrine Diamonds Ltd. ("Peregrine" or "the Company") (TSX: PGD) is
pleased to announce that the 2014 exploration and diamond resource
definition program at its 100 percent-owned Chidliak diamond project
("Chidliak" or "the Project"), on Baffin Island, Nunavut, Canada, has
commenced. The primary objective of the 2014 program will be to
advance 3 to 5 kimberlites showing economic potential to the bulk
sample stage and to commence logistical preparations for the 2015
bulk sampling program. The objective of the 2015 bulk sampling
program will be to confirm sufficient diamond resources to enable
commencement of a pre-feasibility study for Baffin Island's first
diamond mine. The approved budget for the 2014 program is $7,000,000. 
A bulk sample that was collected from the CH-6 kimberlite in 2013 has
confirmed the economic potential of this kimberlite. Two additional
kimberlites, CH-7 and CH-44, have had sufficient diamond testing to
be ready for bulk sampling in 2015. Peregrine plans to advance
additional kimberlites to the bulk sample stage in 2014 by completing
a program of core drilling on these pipes. In addition, thorough
exploration will be focused on discovering new kimberlites with
economic potential in a priority area that includes the CH-6, CH-7
and CH-44 kimberlites. The 2014 program is expected to be completed
in September.  

--  Core Drilling. A minimum of 2,500 metres of core drilling will be
    completed on key kimberlites including CH-6, CH-7 and CH-44 commencing
    in early July. Results from the core drilling, including microdiamond
    analyses and geologic models, will be incorporated into the final design
    of the 2015 bulk sampling program. 
--  Mobilization of Bulk Sample Equipment. A large diameter RC drill rig
    specifically designed for Chidliak, and supporting supplies and
    equipment is scheduled to be mobilized to Iqaluit by sealift in
    September in preparation for 2015 bulk sampling. 
--  Heli-portable Reverse Circulation ("RC") Drilling. Grid drilling will be
    completed over several kimberlites with economic potential, including
    CH-6, CH-7 and CH-44, to accurately map the overburden depth and prepare
    for future trenching programs. The RC drilling will commence in April
    and will continue through the summer season. 


--  Ground geophysics. In preparation for drill testing, ground geophysical
    surveys will be completed over priority geophysical anomalies and in
    areas with unexplained kimberlite indicator minerals and kimberlite
--  Heli-portable RC Drilling. Commencing in April, high priority kimberlite
    targets will be drilled. Priority areas targeted for drilling include
    the String of Pearls, just north of CH-6, Area B, located 15 kilometres
    east of CH-6 where high-interest kimberlite float has been discovered
    and anomaly 645, a two hectare high priority geophysical anomaly located
    13 kilometres southwest of CH-6. 
--  Core Drilling. A minimum of 1,500m of core drilling of high priority
    kimberlite targets will be completed this summer. 
--  Prospecting and Heavy Mineral Sampling.  Ground truthing and prospecting
    is scheduled for approximately 20 targets in the priority area that
    includes CH-6, CH-7 and CH-44. In addition, approximately 400 heavy
    mineral samples will be collected in high priority areas. Prospecting
    and heavy mineral sampling will commence in July.

As reported on February 26, 2014, a 404 tonne bulk sample collected
from the surface of the CH-6 kimberlite in 2013 returned a grade of
2.58 carats per tonne for commercial-size diamonds larger than the
1.18 mm square mesh sieve size. An average price of US $213 per carat
for a 1,013 carat diamond parcel was determined by WWW International
Diamond Consultants. Peregrine expects to declare the first resource
for CH-6 in the second quarter of 2014. As reported on November 22,
2010, a 47.2 tonne surface sample collected from CH-7 returned a
grade of 1.04 carats per tonne with the largest diamond being 6.53
carats in size. As reported on November 21, 2011, initial
microdiamond results from CH-44 showed a coarse diamond size
distribution. A presentation with details on the CH-6 bulk sample,
new exploration targets and Peregrine's 2014 and 2015 strategy is
available at 
Dr. Herman Grutter, Professional Geologist and Peregrine's Program
Manager, Chidliak Exploration, is a Qualified Person and is
responsible for the design and conduct of the exploration programs 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. 
Messrs. Grutter and O'Connor have reviewed this release and approved
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 nine being potentially economic. In April 2013, Peregrine
collected a bulk sample weighing 404 dry tonnes from the CH-6
kimberlite. The 404 tonne sample returned a grade of 2.58 carats per
tonne for diamonds larger than the 1.18 mm sieve size. An independent
diamond valuation of the resulting 1,013 carat parcel of diamonds
returned an average market price of US$213 per carat and modelled
prices that ranged from a minimum of US$162 per carat to a high of
US$236 per carat with a base model price of US$188 per carat. The
2014 exploration program has commenced and planning is now underway
for an important 2015 resource definition program that will be
designed to advance Chidliak to the feasibility stage.  
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
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
Mr. Eric Friedland
Mr. Brooke Clements
Mr. Tom Peregoodoff
Executive VP, Business Development
Peregrine Diamonds Investor Relations
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