Peregrine's Interest in WO Diamond Project Increases to 71.74 %, Peregrine and Kettle River Mutually Agree to Terminate Business Combination

December 13, 2006 PDF version
Vancouver, British Columbia - Wednesday, December 13, 2006 - Peregrine Diamonds Ltd. (“Peregrine”) (TSX:PGD) announces that its participating interest in the WO Diamond Project Joint Venture (“WOJV”), NWT, Canada, has increased to 71.74%. The WO Diamond Project contains the plus nine hectare DO-27 and the plus three hectare DO-18 diamondiferous kimberlite pipes, among others.

On December 9, 2006, cash calls totalling $14.9 million were due and payable from all of the WOJV partners. Aber Diamond Corporation (“Aber”), SouthernEra Diamonds Inc. (“SouthernEra”), and DHK Diamonds Inc. (“DHK”), did not make their respective cash call contributions. As a result, Aber’s and SouthernEra’s interests were respectively diluted to below 4% and as contemplated in the December 6, 2002 Agreement between the WOJV partners, each of Aber’s and SouthernEra’s interest automatically converted to a 0.25% Gross Overriding Royalty in the WOJV. DHK was diluted to a 10.78% participating interest in the WOJV. Archon Minerals Limited (“Archon”) made its cash call contribution and currently its participating interest in the WOJV is 17.48%. Aber’s 7.35% of the diamond marketing rights from any WOJV diamond production has been distributed on a pro-rata basis among the remaining WOJV partners, as a result of which Peregrine now holds 97.92% of the diamond marketing rights from any WOJV diamond production.

As a result of DHK’s dilution, Kettle River Resources Ltd.’s (“Kettle”) (as a 1/3 equity owner in DHK) indirect interest in the WOJV has materially changed. Peregrine and Kettle have mutually agreed to terminate their business combination announced on October 26, 2006. Both companies will continue to explore options to consolidate the WOJV interests.

Peregrine is a well-funded Canadian diamond exploration/development company that is managed by experienced geoscientists. The Company is completing a Preliminary Technical Assessment Report on the 9 hectare DO-27 and 3 hectare DO-18 diamondiferous kimberlite pipes, 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”. On Behalf of the Board of Directors:

Eric Friedland
President

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

Suite 301 -1250 Homer Street, Vancouver, British Columbia V6B 1C6 Tel: 604 408-8880 Fax: 604 408-8881
www.peregrinediamonds.com

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