October 25, 2012

Peregrine Announces $10-Million Financing

Peregrine Diamonds Ltd. ("Peregrine" or "the Company") is pleased to announce a $10-million financing with both Newstar Securities SRL ("Newstar"), a company wholly owned by Robert Friedland, and with Dundee Corporation ("Dundee").

Under the terms of the financing, Newstar will purchase 16.4 million shares and Dundee will purchase 3.6 million shares of Peregrine from treasury, for a total of 20 million shares, priced at $0.50 per share, for total net proceeds of $10-million. The shares have a four month hold period. Taking into account this financing, Newstar will own 13.20 percent and Dundee will own or control 18.14 percent of Peregrine on an undiluted basis, including shares held in managed accounts.

Eric Friedland, Peregrine's CEO, said "We are delighted to have Robert Friedland join Ned Goodman as a significant strategic shareholder of Peregrine. Robert and Ned are two of the best mining financiers in the world and they will provide invaluable support as we continue to move forward with De Beers to confirm a diamond mine at Chidliak. This financing should provide Peregrine with the necessary working capital to fund its administrative costs and currently planned exploration initiatives through mid 2014, including the $2.5-million payment due to BHP Billiton in that year."

The financing is expected to close this week and is subject to TSX approval.