Peregrine Maintains 49 Percent Interest in Chidliak

December 1, 2010 PDF version
Peregrine Diamonds Ltd. (“Peregrine” or “the Company”) is pleased to report that BHP Billiton has elected to maintain a 51 percent participating interest in the Chidliak joint venture. As a result, Peregrine’s ownership in the Chidliak diamond project (“Chidliak” or “the Project”), Baffin Island, Nunavut, Canada remains at 49 percent, and each partner maintains marketing rights for their pro-rata share of potential future diamond production.

Mr. Eric Friedland, CEO of Peregrine, stated “Peregrine is ideally suited to build a vertically integrated diamond company because, in addition to our substantial 49 percent ownership stake in this important and valuable asset, we have marketing rights for our share of any future diamond production. Diamond mines can be incredibly profitable, and we are pleased to have BHP Billiton as our partner, recognizing that their experience in building and operating the successful EkatiTM diamond mine, also in Canada’s north, will benefit Chidliak immensely as we move the project forward together.”

BHP Billiton stated “BHP Billiton has chosen to maintain its interest in Chidliak at 51 percent at this time. We look forward to continuing the exploration programme and progressing the project in partnership with Peregrine.”

Chidliak is located only 120 kilometres from Iqaluit, the capital of Nunavut, Canada. To date, 50 kimberlites have been discovered and diamond results have been reported for 24. Currently six kimberlites have coarse diamond populations and are considered to have economic potential in Arctic settings. An aggressive programme is planned for the 2011 field season, which is expected to include further investigation of kimberlites with economic potential and comprehensive exploration for more diamondiferous kimberlites. The 2011 field season is expected to commence in March, 2011, with the drilling of a number of high-priority, lake-based targets, followed by a larger summer exploration programme. Peregrine is the operator of the 2011 programme.

For further information, please contact Mr. Eric Friedland, CEO, Mr. Brooke Clements, President, Mr. Mike Westerlund, Vice President, Investor Relations and Corporate Communications or Peregrine Diamonds Investor Relations, at 604-408-8880 or at investorrelations@pdiam.com.

Forward-Looking Statements: This news release contains forward-looking statements. All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements relating to the proposed exploration programme, funding availability, anticipated exploration results, resource estimates, and future exploration and operating plans) are forward-looking statements. These forward-looking statements reflect the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements and, even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things, uncertainties relating to the availability and cost of funds, timing and content of work programmes, results of exploration activities, interpretation of drilling results and other geological data, world diamond markets, future diamond prices, reliability of mineral property titles, changes to regulations affecting the Company’s activities, delays in obtaining or failure to obtain required project approvals, any changing budget priorities of BHP Billiton, operational and infrastructure risks, and other risks involved in the diamond exploration business. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking statements a