Federal and Nunavut Governments to Fund Construction of Iqaluit Marine Port

VANCOUVER, BRITISH COLUMBIA--(Marketwired - July 31, 2015) - Peregrine Diamonds Ltd. ("Peregrine" or the "Company") (TSX:PGD) is pleased to report that funding for the construction of a Marine Port and Sea Lift Facility in Iqaluit, the capital of Nunavut, has been approved by the Government of Canada and the Government of Nunavut. The announcement was made on July 30, 2015 in Iqaluit by the Honourable Leona Aglukkaq, Minister of the Canadian Northern Development Agency and Member of Parliament for Nunavut. The estimated budget for the project is $84.9 million with the federal government funding up to $63.7 million and the Government of Nunavut the remainder. The new facility will significantly reduce the time required to offload cargo, improve safety for workers and recreational boaters, and be a potential base for military ships, commercial fisherman and search and rescue operations.

Iqaluit is located approximately 120 kilometres from Peregrine's Chidliak project ("Chidliak" or "the Project") where the Company has declared an Inferred Mineral Resource of 8.57 million carats of diamonds and is currently conducting a resource development program designed to increase the resource base. In 2016, Peregrine expects to initiate a Preliminary Economic Assessment of the Project. If Peregrine is successful in advancing to the development of a diamond mine at Chidliak, Iqaluit will be an important supply point for mine construction and ongoing operations. A modern deep water port would dramatically improve the efficiency of and lower the cost of shipping and supply.

Mr. Tom Peregoodoff, President and CEO, stated, "We are very pleased to see a commitment by the Governments of Canada and Nunavut to the building of a modern port in Iqaluit. In addition to being a key component of the infrastructure required to construct and operate a diamond mine at Chidliak, the efficiencies that the port will bring will improve the quality of life and lower the cost of living for the people of Iqaluit and the communities on Baffin Island."

ABOUT PEREGRINE DIAMONDS

At its 100 percent-owned, 582,476 hectare Chidliak project, located 120 kilometres from Iqaluit, the capital of Nunavut, 71 kimberlites have been discovered to date with eight being potentially economic. An Inferred Mineral Resource of 8.57 million carats in 3.32 million tonnes of kimberlite at a grade of 2.58 carats per tonne has been defined for a portion of the CH-6 kimberlite. In addition, a Target for Further Exploration of 3.20 to 4.38 million tonnes of kimberlite to a depth of 380 metres below surface has been identified at CH-6. An independent diamond valuation of a 1,013 carat parcel of diamonds from CH-6 returned an average market price of US$213 per carat and modelled prices that ranged from a minimum of US$162 per carat to a high of US$236 per carat, with a base model price of US$188 per carat. A Target for Further Exploration of 3.72 to 6.01 million tonnes to a depth of 290 metres has been defined at the CH-7 kimberlite. In 2010, a 47 tonne mini-bulk sample collected from the surface of CH-7 returned a grade of 1.04 carats per tonne. A Target for Further Exploration of 1.27 to 3.19 million tonnes to 250 metres depth has been defined at the CH-44 kimberlite pipe. The objective of the 2015 Chidliak Diamond Resource Development program is to define a resource base that would be the subject of a Preliminary Economic Assessment in 2016.

Through its recent purchase of the shares of Diamexstrat Botswana (Proprietary) Ltd., Peregrine now controls eight prospective diamond prospecting licenses in Botswana that cover 5,746 km². Further target generation and the drill testing of four priority targets are planned for the Botswana project in 2015.

Peregrine Exploration, a wholly owned subsidiary of Peregrine Diamonds, holds the 8,493 hectare Lac de Gras project in the Northwest Territories, located approximately 27 kilometres from the Diavik Diamond Mine. The nine hectare 72.1%-owned DO-27 kimberlite, located at Lac de Gras, hosts an Indicated Mineral Resource of 18.2 million carats of diamonds in 19.5 million tonnes of kimberlite at a grade of 0.94 carats per tonne and it is open at depth. Through comprehensive evaluation of its extensive diamond exploration databases, Peregrine Exploration, is working towards acquiring and developing new diamond properties in North America. A key asset being utilized in the search for a new Canadian diamond district is a proprietary database acquired from BHP Billiton that contains data from approximately 38,000 kimberlite indicator mineral samples covering approximately three million square kilometres of Canada.

For information on data verification, exploration information and resource estimation procedures see the technical reports entitled, "2015 Technical Report for the Chidliak Project, 66° 21' 43" W, 64° 28' 26" N Baffin Region, Nunavut" dated February 23, 2015, and "Peregrine Diamonds Ltd. Lac de Gras Project Northwest Territories, Canada NI 43-101 Technical Report" dated July 15, 2014, both of which are available on SEDAR and the Company's website.

FORWARD-LOOKING STATEMENTS

This news release contains forward-looking statements within the meaning of Canadian securities legislation. All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future including, without limitation, statements relating to proposed exploration and development programs, funding availability, anticipated exploration results, grade of diamonds and tonnage of material, resource estimates, anticipated diamond valuations and future exploration and operating plans are forward-looking statements. These forward-looking statements reflect the current expectations or beliefs of the Company based on information currently available to the Company.

Forward-looking statements are made based upon certain assumptions by the Company and other important factors that, if untrue, could cause the actual results, performances or achievements of the Company to be materially different from future results, performances or achievements expressed or implied by such statements. Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which the Company will operate in the future, including the price of diamonds, anticipated costs and ability to achieve goals. Certain important factors that could cause actual results, performances or achievements to differ materially from those in the forward-looking statements include, but are not limited to: receipt of regulatory approvals; anticipated timelines for community consultations and the impact of those consultations on the regulatory approval process; market prices for rough diamonds and the potential impact on the Chidliak Project; and future exploration plans and objectives.

Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements and, even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things, uncertainties relating to availability and cost of funds, timing and content of work programs, results of exploration activities, interpretation of drilling results and other geological data, risks relating to variations in the diamond grade and kimberlite lithologies; variations in rates of recovery and breakage; variations in diamond valuations and future diamond prices; the state of world diamond markets, reliability of mineral property titles, changes to regulations affecting the Company's activities, delays in obtaining or failure to obtain required project approvals, operational and infrastructure risk and other risks involved in the diamond exploration and development business. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to their inherent uncertainty.