Peregrine Diamonds Ltd.

Peregrine Diamonds Ltd.

January 23, 2007 12:04 ET

Peregrine Diamonds Ltd.: AMEC to Complete a Preliminary Technical Assessment on WO Diamond Project

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 23, 2007) - Peregrine Diamonds Ltd. ("Peregrine") (TSX:PGD) today announced that it has awarded the contract to complete an internal Preliminary Technical Assessment ("PTA") on its WO Diamond Project, NWT, Canada to AMEC.

AMEC is an international project management and services company that employs more than 20,000 people worldwide. From managing exploration and testwork through to providing comprehensive EPCM services, AMEC has played integral roles in most of the diamond projects under development in Canada, including BHP Billiton's Ekati™ Diamond Mine as well as De Beers' Snap Lake and Victor diamond projects.

The Preliminary Technical Assessment will include a conceptual model of a potential diamond mine and will examine several operating scenarios and development concepts, focusing on kimberlite processing, waste rock disposal, water management and overall project footprint. The PTA is scheduled to be completed during the summer of 2007 and will be used by Peregrine for internal planning purposes and for assistance with any future environmental studies.

WO Diamond Project Activity Update

The large diameter bulk sample drilling program currently underway on the DO-27 kimberlite has, to date, completed five large diameter holes, totaling approximately 601 meters, on the land-based portion of the North East Lobe. Using an average specific gravity of 2.0 g/cm3, this equates to a total of approximately 322 wet tonnes of kimberlite. A second large diameter drill rig has been set up on its first drill hole location and is expected to begin drilling on January 26th, 2007.

It is currently unknown whether this pace of production will be maintained during the upcoming ice-based drilling phase.

Ice building activities on the DO-27 lake have been successful in creating approximately 70 inches of ice, with a minimum of 80 inches required to safely support the weight of all the drilling equipment. With the continued cold weather, it is anticipated that this minimum will be reached in early February, 2007.

Peregrine has been advised that BHP Billiton will process this year's bulk sample at the Bulk Sample Test Facility at BHP Billiton's Ekati™ Diamond Mine. This is important as the proximity of Ekati™ should allow Peregrine to drill and ship samples later in the season than if the samples had to be transported via the main Tibbitt to Contwoyto ice road to Yellowknife, and onwards for processing.

The WO Diamond Project is Peregrine's most advanced exploration project to date and consists of the plus 9 hectare DO-27 and plus 3 hectare DO-18 diamondiferous kimberlite pipes, among others.

Peregrine is a well funded Canadian diamond exploration/development company that is managed by experienced geoscientists. In addition to moving forward with the above mentioned work, the company is actively exploring for other diamondiferous kimberlites on its extensive land holdings across Canada. The company trades on the Toronto Stock Exchange under the symbol "PGD".

Forward-Looking Statements: This document includes forward-looking statements. Forward-looking statements include, but are not limited to statements concerning Peregrine's projects, pre-feasibility studies, and other statements that are not historical facts. When used in this document, the words such as "could", "confident", "plan", "estimate", "expect", "anticipated", "intend", "likely", "may", "potential", "should", "scheduled", "significant", and similar expressions are forward-looking statements. Although Peregrine Diamonds Ltd. believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risk and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements are disclosed in the corporation's periodic filings with Canadian regulators.

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