Peregrine Files Updated Technical Report for Chidliak Project

August 19, 2016 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 “Preliminary Economic Assessment Technical Report on the Chidliak Project, Nunavut, Canada” and dated effective July 7, 2016 (the “Technical Report”) for the 513,249 hectare Chidliak project and the adjacent 51,147 hectare Qilaq project, located approximately 120 kilometres north-east of Iqaluit, the capital of Nunavut. The Technical Report supports the positive Preliminary Economic Assessment that was announced by news release dated July 7, 2016.

QUALIFIED PERSONS

The independent Preliminary Economic Assessment for the Chidliak Phase One Diamond Development was prepared by JDS Energy & Mining Inc., with support from SRK Consulting Canada Inc., and is based on an independent Mineral Resource estimate for the Chidliak Project published as a NI 43-101 Technical Report with an effective date of June 3, 2016.

The following Qualified Persons have participated in the development of the PEA, or are responsible for specific inputs into the PEA.

Qualified Person Company Responsibility
Gord Doerksen, P.Eng. JDS Energy & Mining Inc. Project Management, Economic Analysis, Costs, Infrastructure, Logistics, Mineral Processing
Dino Pilotto, P.Eng. JDS Energy & Mining Inc. Mine Plan, Production Schedule, Mine Costs
Maritz Rykaart, P.Eng. SRK Consulting (Canada) Inc. Water & Waste Rock Management
Bruce Murphy, FSAIMM SRK Consulting (Canada) Inc. Geotechnical
Dr. Tom Nowicki, P. Geo. Mineral Services Canada Inc. Resource Geology, Data Verification, Mineral Resource Estimates

The Qualified Persons named above have reviewed this news release and have approved of its’ contents.

About Peregrine Diamonds

Peregrine is a TSX listed diamond exploration and development company with assets located in northern Canada and Botswana.

Peregrine’s core asset is its’ 100 percent-owned, 513,249 hectare Chidliak project, located 120 kilometres from Iqaluit, the capital of Nunavut where 71 kimberlites have been discovered to date with eight being potentially economic. A Preliminary Economic Assessment (“PEA”) of a Phase One Diamond Development (“CP1D”) has been completed. The PEA highlights that the CP1D represents a robust, high margin, ten-year, open-pit mining project with very attractive economics, including after tax NPV of C$471M, IRR of 29.8% and a two year payback. An Inferred Mineral Resource of 11.39 million carats in 4.64 million tonnes of kimberlite at an average grade of 2.45 carats per tonne has been defined for a portion of the CH-6 kimberlite. In addition, a Target for Further Exploration (“TFFE”) of 2.34 to 3.75 million tonnes of kimberlite to a depth of 380 metres below surface has been identified at CH-6. An independent diamond valuation by WWW International Diamond Consultants, of a 1,013 carat parcel of diamonds from CH-6 returned an average market price of US$213 per carat and modeled prices that range from a minimum of US$162 per carat to a high of US$236 per carat, with a base model price of US$188 per carat (all using the February 24, 2014 price book). In February, 2016, WWW updated the CH-6 diamond valuation to reflect current market conditions, using a February 1, 2016 price book. The average market price was US$162 per carat and modeled prices ranged from a minimum of US$128 per carat to a high of US$189 per carat, with a base model price of US$149 per carat. An Inferred Mineral Resource of 4.23 million carats in 4.99 million tonnes of kimberlite at an average grade of 0.85 carats per tonne has been defined for a portion of the CH-7 kimberlite. In addition, T