Peregrine Diamonds closes private placement

Peregrine Diamonds Ltd. has completed a portion of its non-brokered private placement of common shares and units for gross proceeds of $3.3 million. A total of 7,106,000 common shares at a price of $0.44 per share were sold under the private placement on a “flow-through” basis pursuant to the Income Tax Act (Canada). In addition, a total of 470,000 “non-flow-through” units consisting of one common share and one-half of a share purchase warrant were sold at a price of $0.40 per unit. Each whole share purchase warrant will entitle the holder thereof to purchase one common share at a price of $0.50 until March 20, 2009.

An additional closing of “non-flow-through” units is anticipated to be completed next week.

The common shares and warrants issued under the private placement and the common shares issuable pursuant to the exercise of the warrants are subject to a hold period expiring on July 21, 2008.

A finder’s fee of 5% in cash will be paid on a portion of the private placement. Proceeds from the private placement will be used for Peregrine’s mineral exploration projects in Canada.

The securities issued by Peregrine have not and will not be registered under the United States Securities Act of 1933, as amended (the “1933 Act”), or the securities laws of any state of the United States, and may not be offered or sold in the United States absent registration or an applicable exemption therefrom under the 1933 Act and the securities laws of all applicable states.

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