Peregrine Acquires Mineral Permits in Baffin Island Region

February 13, 2007 PDF version
Vancouver, British Columbia - Tuesday, February 13, 2007 - Peregrine Diamonds Ltd. (“Peregrine”) (TSX:PGD) today announced that it has acquired Prospecting Permits totaling over two million hectares in the Baffin Island region of Nunavut, Canada. The three project areas, Chidliak, Mirage and Foxe Basin, covered by the Prospecting Permits were the result of two agreements between Peregrine and BHP Billiton Diamonds Inc. (“BHP Billiton”) regarding regional diamond exploration programs extending over much of Baffin Island. Under the terms of the agreements, BHP Billiton provided Peregrine technical data and financial exploration commitments in order that Peregrine might develop areas of advanced exploration interest. BHP Billiton has retained back-in rights which provide that, under various scenarios, BHP Billiton may acquire up to a 65% interest in any of these properties by reimbursing Peregrine up to 400% (up to a maximum of US$40 million) of exploration expenditures incurred per project area.

The Chidliak Project is on the east side of Baffin Island, approximately 100 kilometers northeast of Iqaluit. The Mirage Project is on the west coast of Baffin, approximately 400 kilometers northwest of Iqaluit. The Foxe Basin Project is located approximately 700 kilometers northwest of Iqaluit, covering islands off the west coast of Baffin Island.

Reconnaissance till sampling programs conducted by Peregrine and BHP Billiton in 2005 and 2006 in all three geographically diverse areas recovered significant kimberlitic indicator minerals including highly prospective eclogitic and pyrope garnets, some with compelling G10 chemistry and fresh surface textures. These indicator mineral chemistries and surface textures suggest the possibility of diamondiferous kimberlites within the Prospecting Permit areas.

In addition to till sampling, Goldak Airborne Surveys of Saskatoon, Saskatchewan flew a fixed-wing aeromagnetic survey in 2006 using a 250 meter line spacing over the southern half of Prince Charles Island in the Foxe Basin Project. This survey produced 14 generally large geophysical anomalies that, in conjunction with the encouraging kimberlitic indicator mineral results, may be indicative of concealed kimberlite intrusions.

Peregrine is planning an aggressive exploration program for the Baffin Island projects this year, including additional heavy mineral sampling and airborne and ground geophysical surveys. Follow-up of the aeromagnetic anomalies on Prince Charles Island is currently scheduled for the second quarter, 2007.

Peregrine will be releasing more specific information on its other Canadian diamond exploration programs outside of its WO Diamond Project in the near future.

Dr. Jennifer Pell, P.Geo., Chief Geoscientist for Peregrine Diamonds Ltd., is the Qualified Person under NI 43-101 who is responsible for these projects.

Peregrine is a well-funded Canadian diamond exploration/development company that is managed by experienced geoscientists. The Company is completing a third bulk sampling program on its WO Diamond Project, NWT, and is exploring for other diamondiferous kimberlites on its extensive land holdings in Canada. The Company trades on the Toronto Stock Exchange under the symbol “PGD”.

For further information, please contact Jim Crawford, Manager - Investor Relations, at 604-408-8880 or at jim@pdiam.com.

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,” “likely,” “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 in