Peregrine Files 2018 Preliminary Economic Assessment Technical Report for the Chidliak Project

July 5, 2018 PDF version

Peregrine Diamonds Ltd. (“Peregrine” or “the Company”) (TSX:PGD) is pleased to announce the filing of a National Instrument (“NI”) 43-101 technical report titled “Updated Preliminary Economic Assessment NI 43-101 Technical Report Chidliak Project, Nunavut, Canada” and dated effective May 23, 2018 (the “2018 PEA”) for its Chidliak project, located approximately 120 kilometres north-east of Iqaluit, the capital of Nunavut. The 2018 PEA is an update to a maiden Preliminary Economic Assessment report with an effective date of July 7, 2016 and also includes minor revisions to the positive Preliminary Economic Assessment that was announced by news release dated May 23, 2018.

The Technical Report summarizes the Preliminary Economic Assessment completed by JDS Energy & Mining Inc. (“JDS”). Additional detailed work completed since the release of results on May 23, 2018 are included in the filed 2018 PEA, and revisions to the initial base case results are summarized below.

Table 1. Initial and revised 2018 PEA Base Case Outcomes

Item

Unit

Initial: May 23, 2018

Revised: July 5, 2018

Pre-Tax NPV(7.5)

C$ million

1068.8

1052.3

Pre-Tax IRR

percentage

38.6

38.8

After Tax NPV(7.5)

C$ million

679.1

668.7

After Tax IRR

percentage

31.1

31.2

Total Capital Cost

C$ million

526.0

520.7

Pre-Production Capital

C$ million

454.7

464.4

Sustaining Capital

C$ million

71.3

56.3

Life of Mine Mining Costs

$/tonne processed

38.9

42.8

Life of Mine Mining Costs

$/carat recovered

22.1

24.4

The revisions noted above are primarily a result of further refinement in open pit design and optimization of mine planning and scheduling.

Cautionary Statement

Readers are cautioned that the 2018 PEA is preliminary in nature and is based on Inferred Mineral Resources that are currently considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves. There is no certainty that the PEA will be realized. There is no certainty that the Inferred Resources will be converted to the Indicated or Measured categories, or that the potential Indicated or Measured Resources would be converted to the Proven or Probable Mineral Reserve categories. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

The estimates of Mineral Resources in the 2018 PEA and the Mineral Resource statement may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other