Peregrine Diamonds Ltd.

Peregrine Diamonds Ltd.

January 31, 2007 09:00 ET

Peregrine Diamonds Announces Proposed Normal Course Issuer Bid

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 31, 2007) - Peregrine Diamonds Ltd. ("Peregrine" or "the Company") (TSX:PGD) today announces its intention to make a normal course issuer bid, subject to regulatory approval, under which it may purchase up to 4,170,000 common shares of the Company. The normal course issuer bid will commence two trading days after the Toronto Stock Exchange ("TSX") grants final approval and will end on January 31, 2008 or on such earlier date that Peregrine completes its purchases. All purchases will be effected through the facilities of the TSX and the price that Peregrine will pay for any shares acquired by it will be the market price of the shares at the time of acquisition.

The consideration to be offered will be cash, payable from the Company's current unallocated working capital, in accordance with the requirements of the TSX. There will be no restrictions on the price Peregrine is prepared to pay per share other than that purchases will not be made if Peregrine does not believe that the purchases would be advantageous to the Company and its shareholders. All shares purchased by Peregrine will be cancelled.

The Board of Directors of Peregrine is of the view that, from time to time, the Common Shares may trade at a discount to the underlying assets of the Company. The Board of Directors believes that the purchase by Peregrine of its own shares pursuant to a normal course issuer bid is a worthwhile investment which is beneficial to all non-selling shareholders of Peregrine and which will not preclude the Company from pursuing its current and future business opportunities.

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