Peregrine Diamonds, Peregrine Metals merger

Peregrine Diamonds Ltd. and Peregrine Metals Ltd. are pleased to announce that they have entered into a letter of intent for the purpose of effecting a business combination whereby the two companies will merge to form a new multi-commodity resource company to be called Peregrine Resources Ltd. (Peregrine Resources).

Both companies are currently working to establish independently calculated, NI 43-101 compliant resources; a copper resource at the Altar porphyry deposit in San Juan Province, Argentina for Metals and a diamond resource at the nine hectare DO-27 kimberlite pipe in the Northwest Territories, Canada for Diamonds. In addition to these two advanced projects, Peregrine Resources will have a portfolio of quality base and precious metal, iron ore, diamond and uranium projects in Chile, Argentina, Peru and Canada.

There are compelling reasons for this business combination including the following:

Diamonds shareholders will acquire exposure to the Altar copper resource in a time of strong copper prices.

Metals shareholders will acquire exposure to the DO-27 diamond resource, located only 27 kilometres from the Diavik Diamond Mine.

Peregrine Resources will have exposure to numerous excellent exploration projects in diamonds, copper, iron and other precious and base metals, thus spreading commodity risk and assuring news flow throughout the year.

The merger will capitalize on managerial and technical team synergies between Diamonds and Metals and increase administration efficiencies.

Peregrine Resources will have a significantly larger market capitalization than Diamonds and still maintain a solid and diverse shareholder base.

Metals will gain a Toronto Stock Exchange public listing through the merger, creating more liquidity opportunities for shareholders.

Senior Management of Peregrine Resources will consist of: Eric Friedland, Chairman and CEO; Brooke Clements, President; Rod Davey, Chief Operating Officer; Greg Shenton, Chief Financial Officer; Jeff Toohey, Vice President Exploration-Metals; Peter Holmes, Vice President Exploration-Diamonds; Wendy Mathison, Vice President Operations; and Jennifer Pell, Chief Geoscientist. Several directors from the current Diamonds and Metals Boards are expected to join the Board of Directors of Peregrine Resources.

Source : http://www.pdiam.com/s/

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