Dunsmuir and Peregrine Renegotiate Merger Arrangement Airborne Surveys Completed at Nanuq and Lac de Gras

September 30, 2004
Eric Friedland, President of Peregrine Diamonds Ltd., and Art Ettlinger, President and CEO of Dunsmuir Ventures Ltd., today announced that the companies have agreed to amend the terms of their merger agreement dated July 16, 2004. Under the amended terms, Dunsmuir shareholders will receive one common share of the new Peregrine Diamonds for every seven outstanding common shares of Dunsmuir. Peregrine shareholders will still receive one common share of the new Peregrine Diamonds for every outstanding common share of the old Peregrine Diamonds. Peregrine shareholders holding in excess of 66?% of the outstanding common shares of Peregrine Diamonds have indicated their intent to execute lock-up agreements requiring them to vote in favour of the merger. The companies intend to hold extraordinary general meetings for shareholder approval on Monday, January 17, 2005.

Nanuq Update

A Falcon(tm) airborne gravity gradiometer and magnetic survey has been completed over a portion of the Nanuq property. The survey, covering approximately 7,500 line-kilometres was designed to target the likely kimberlite source areas to the main Nanuq and Southwestern kimberlite indicator mineral (KIM) trains. A summer field program which involved the collection of an additional 501 till samples mainly from the areas at the heads of these two main trains was also completed. The gravity survey in conjunction with five previous field seasons of till sampling will be used to identify new targets for diamond drilling in 2005.

Lac de Gras Update

A DIGHEM airborne magnetic-electromagnetic survey was completed by Fugro Airborne Surveys over a portion of the Lac de Gras East claims. The survey area, covering approximately 3,500 line-kilometres, was flown to compliment adjacent airborne surveys commissioned previously by Thelon Ventures Ltd., Dunsmuir’s partner on the Lac de Gras East claims. The high resolution survey, flown at 100-metre line spacing will be used to help identify subtle magnetic and/or electromagnetic anomalies potentially reflective of buried kimberlite bodies not identified in earlier, wider spaced surveys.

For further information about both companies please contact Eric Friedland at 604-408-8880 and Art Ettlinger at 604-681-6311 or visit each company’s web site at: www.peregrinediamonds.com and www.dunsmuirventures.com.

On Behalf of Peregrine Diamonds
“Eric Friedland”


Eric Friedland, President

Email: eric@pdiam.com


On Behalf of Dunsmuir Ventures
“Art Ettlinger”

Art Ettlinger, President

Email: aettlinger@dunsmuirventures.com


The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.

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