Dunsmuir and Peregrine Update Proposed Business Combination

December 20, 2004
Dr. Art Ettlinger of Dunsmuir Ventures Ltd. (“Dunsmuir”) and Mr. Eric Friedland of Peregrine Diamonds Ltd. (“Peregrine”) are pleased to provide an update of their proposed corporate merger as first announced on July 19, 2004 and amended on September 30, 2004. Over the past four to five months, both Peregrine and Dunsmuir have been either approached by third parties with, or have unilaterally generated, new opportunities in the minerals sector. These opportunities, while independently significant to each company, present a far more powerful corporate event when implemented using the combined technical and financial skills of both companies.

To take advantage of these new opportunities in a timely manner, both companies have mutually agreed not to proceed with the extraordinary general meetings for shareholder approval on Monday, January 17, 2005 at this time. Instead, Dunsmuir and Peregrine are pursuing a new interrelated structure to include common directors, shareholders, corporate offices and vision within a group of commodity specific companies, known as the Peregrine Group. In this regard, Dunsmuir is now involved in a uranium acquisition program in Canada and the southern United States that could include strategic partnerships and alliances with other companies dedicated to the discovery and production of uranium. If these acquisitions are completed, the merger agreement between Dunsmuir and Peregrine will be formally terminated, and it is anticipated that Dunsmuir will change its name to Kestrel Uranium Inc.

Exploration of Dunsmuir’s Nanuq property continues under the option agreement between Dunsmuir and Peregrine announced on July 19, 2004.

More information will be forthcoming as events unfold in the New Year.

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

On Behalf of Dunsmuir Ventures
“Art Ettlinger”
Art Ettlinger, President
Email: aettlinger@dunsmuirventures.com


On Behalf of Peregrine Diamonds
“Eric Friedland”
Eric Friedland , President
Email: eric@pdiam.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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