WO CLAIM BLOCK (DO-27)

Announced that management has decided that development of the DO-27 project is currently not economically justifiable. However, AMEC believes that there is a reasonable chance that DO-27 could support a mining operation in the future.

AMEC investigated whether the DO-27 indicated mineral resource had the potential to pay back capital on an undiscounted cash flow basis. A preliminary financial analysis for a "scrub-only" mining operation (ie ore processed elsewhere) was performed which achieved this objective, supporting the resource classification. economics of a potential "scrub-only" project were determined by the PTA to be currently more favourable than a "stand-alone" operation. Although Peregrine management has concluded that the development of the DO-27 project is currently not economically justifiable, both the Company and AMEC believe that there is a reasonable chance that DO-27 could support a mining operation in the future.

Provided an updated indicated mineral resource of 18.2 million carats in 19.5 million tonnes of kimberlite for the nine-hectare DO-27 kimberlite. The estimated grade of the indicated resource is 94 carats per 100 tonnes. An additional 6.5 to 8.5 million tonnes of kimberlite below the indicated resource was classified as a potential mineral deposit and DO-27 remains open at depth. In addition to the resource calculation, AMEC completed an internal preliminary technical assessment ("PTA") study of DO-27 where a number of mining engineering parameters were examined in conjunction with the resource estimate, currency exchange rates, fuel and other consumable prices, diamond valuations and capital cost trends in the mining industry, to determine the current economic potential of DO-27.