Peregrine Diamonds Ltd.

Peregrine Diamonds Ltd.

February 01, 2007 11:28 ET

Peregrine Diamonds Normal Course Issuer Bid Accepted by TSX

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Feb. 1, 2007) - Peregrine Diamonds Ltd. ("Peregrine" or "the Company") (TSX:PGD) announces that its proposed normal course issuer bid has been accepted by the Toronto Stock Exchange ("TSX"). Under the normal course issuer bid, the Company may purchase up to 4,170,000 common shares of the Company which represents approximately 10% of the Company's public float. The Company currently has 49,616,730 issued and outstanding common shares and has not purchased any of its common shares within the past 12 months.

The normal course issuer bid will commence on February 5, 2007 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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