Press Releases

November 06, 2006

Modeled Valuations Of DO-27 Diamond Parcel Completed

November 6, 2006 -- Vancouver, B.C. -- Peregrine Diamonds Ltd. ("Peregrine") (TSX: PGD) has received the modeled valuation report by WWW International Diamond Consultants Ltd. ("WWW") on the combined 2005 and 2006 diamond parcels, comprising 508.9 carats from the Main Lobe and Northeast Lobe pyroclastic kimberlite of DO-27, WO Diamond Project, NWT, Canada.

The average modeled valuation ranged from US$45 to US$73 per carat using WWW's September, 2005 diamond price book.

The average modeled valuation ranged from US$41 to US$62 per carat using WWW's September, 2006 diamond price book, reflecting the significant drop in certain rough diamond prices over the last year.

Highlights from the comprehensive WWW report include:

• Normally with a sample of only 510 carats, the average spot price (primary producer sales price at the day of valuation) assigned to the sample would be in the order of plus 40 to minus 25 percent (90% confidence limits) of the true value of the resource. This highlights the inherent uncertainties of valuing a small parcel of diamonds. Modeled valuation calculations start with a spot price and therefore variations in spot prices will affect the ultimate modeled valuation.

• Given the small size of the DO-27 sample, diamond values have more upward potential than downward, and diamond values per size class in the larger sizes could be higher than those used in the model.

• Based on analysis of the 2005 and 2006 bulk samples, WWW believes it is highly unlikely that the average price will be lower than US$41 per carat based on current (September, 2006) diamond prices.

• WWW is forecasting rough diamond prices to increase by around 20 percent over the next five years.

• At 90 percent confidence limits, 7,000 carats would give a modeled average price within 10 percent of the true value and within 15 percent of the true value with 3,000 carats. WWW would recommend that at least 3,000 carats be extracted from DO-27 as with modeling the confidence limits will tighten to within 10 percent.

As the incidence of larger, higher value stones will have the most impact on average diamond values from DO-27, at least 3000 carats will be needed from the pipe to begin to give an acceptable degree of confidence that those types of stones have been recovered in typical proportion. Determining the economic viability of a diamond project is complicated. It involves extensive geostatistical analysis due to the highly variable nature of diamond distribution in kimberlite pipes and the fact that both diamond grade and average diamond value play important roles in determining the viability of any given diamond deposit. Since no two diamonds are exactly alike, a significant parcel of diamonds (3000 to 7000 carats) is needed to gain the confidence levels on diamond size distribution and average diamond value necessary to make any realistic decisions regarding the future development of DO-27.

In that regard, Peregrine will soon announce plans for the upcoming winter 2007 bulk sampling program at DO-27 with specifics on various drilling methods and equipment that will be employed to attempt to significantly increase the total carats recovered.

WWW International Diamond Consultants Ltd. have reviewed and approved the contents of this release. This release has also been reviewed and approved by Jennifer Pell, Ph.D., P.Geo., Peregrine's internal Qualified Person ("Q.P."), and Howard Coopersmith, P. Geo., Peregrine's external Q.P.

Peregrine is a well funded Canadian diamond exploration/development company that is managed by experienced geoscientists. The company is completing a Preliminary Technical Assessment Report on the 9 hectare DO-27 and 3 hectare DO-18 diamondiferous kimberlite pipes, and is exploring for other diamondiferous kimberlites on its extensive land holdings in Canada. The company trades on the TSX Exchange under the symbol "PGD".

On Behalf of the Board of Directors:

Eric Friedland
President and CEO

For further information, please contact Robérta Voyer, Corporate Administrator, at 604-408-8880.

Forward-Looking Statements: This document includes forward-looking statements. Forward-looking statements include, but are not limited to statements concerning Peregrine's projects, pre-feasibility studies, and other statements that are not historical facts. When used in this document, the words such as "could," "confident," "plan," "estimate," "expect," "anticipated," "intend," "may," "potential," "should," "scheduled," "significant," and similar expressions are forward-looking statements. Although Peregrine Diamonds Ltd. believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risk and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements are disclosed under the heading "Risk Factors" and elsewhere in the corporation's periodic filings with Canadian regulators.