Peregrine Options Three Western Churchill Diamond Properties From BHP Billiton

October 14, 2004
Peregrine Diamonds Ltd. (the “Company”) is pleased to announce that it has signed an Option/Joint Venture Agreement (the “Agreement”) with BHP Billiton Diamonds Inc. covering three diamond exploration properties in the Western Churchill Geologic Province of Nunavut. Over the past year and a half, the Western Churchill province has yielded multiple clusters of diamond bearing kimberlite and has developed into the largest staking rush in Canadian history. With this acquisition, and with the acquisition of the Nanuq project through a proposed merger with Dunsmuir Ventures Ltd. announced on September 30, 2004, Peregrine will be among the largest landholders in this new diamond province.

Under the terms of the Agreement, Peregrine shall have, subject to certain back-in rights by BHP Billiton, the right to earn a 65% interest in the three properties by completing a $1 million grid-based till sampling and prospecting program by October 13th, 2005. Peregrine may earn a further 35% interest in the properties (for a total 100% interest) by spending an additional $800,000 on exploration by December 31, 2005. Under Peregrine’s alliance agreement with BHP Billiton, the latter has the option, under certain conditions on BHP Billiton generated projects, to back-in ultimately to a 65% interest, by refunding Peregrine between 300% and 400% of Peregrine’s exploration expenditures, sole funding all expenditures through to the completion of a feasibility study and by arranging all necessary funding to place a deposit into commercial production.

The Dubwant Lake, Tulemalu, and Area 2 properties cover 1,134,086 acres, 1,481,870 acres and 704,994 acres respectively, and have been identified by BHP Billiton through regional heavy mineral sampling as being anomalous in kimberlite indicator minerals. The Dubwant Lake property is known to contain the Outlet Bay Diatreme which is a deep seated, mantle tapping body that, based on geochemical composition, petrography and mineral chemistry, has kimberlitic or lamproitic affinity. Dubwant Lake also contains a number of newly identified KIM anomalies. At Area 2, BHP Billiton has recovered, among other kimberlite indicators, a G-10 garnet containing more than 14.2 wt.% Cr2O3 which is deemed to be of high interest for follow up exploration.

A $1 million heavy mineral sampling program was recently completed by Dunsmuir personnel on the three property blocks. These samples are in the process of being shipped to a commercial laboratory for analysis and initial results are expected later this year.

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

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

On Behalf of Dunsmuir Ventures Ltd.
“Art Ettlinger”
Art Ettlinger, President, CEO and Director
Email: aettlinger@dunsmuirventures.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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