Peregrine Announces Modelled Values of US$43 to US$70 Per Carat for DO-27 Bulk Sample Diamonds

VANCOUVER, BRITISH COLUMBIA, Dec 17 (MARKET WIRE) --
Brooke Clements, President of Peregrine Diamonds Ltd. ("Peregrine")
(TSX: PGD) is pleased to report modelled diamond values for 2,075 carats
of diamonds recovered from the nine hectare DO-27 kimberlite pipe, WO
Diamond Project, NT, Canada. The average modelled value ranged from US$43
to US$70 per carat, with a "Base Case" average of US$51 per carat. The
valuation was completed in Antwerp, Belgium under the supervision of WWW
International Diamond Consultants Ltd. ("WWW"), an internationally
recognized diamond valuation and consultancy company. These valuation
results, along with updated grade and geological information, will be
used by Peregrine and AMEC Americas Ltd. ("AMEC") to complete the
Preliminary Technical Assessment ("PTA") report, which will investigate
the current economic potential of DO-27.

DIAMOND VALUATION RESULTS

The cumulative 2,075 carat diamond parcel was acquired by large diameter,
reverse circulation bulk sample drilling campaigns completed by Peregrine
in 2005, 2006 and 2007. All of the diamonds valued are from the Main Lobe
and Northeast Lobe pyroclastic kimberlite ("PK") units. An additional 188
carats that were recovered from other minor, volumetrically
insignificant, Northeast Lobe lithologies in 2006 and 2007 were not
included in the valuation model as these lithologies may not be included
in the final resource model. Detailed information on the three bulk
sampling campaigns can be found in Peregrine press releases dated June
14, 2005, September 5, 2006 and September 18, 2007.

The valuation results are summarized in the table below.

DO-27 DIAMOND VALUATION RESULTS
--------------------------------------------------------------------------
Weight "Base Case" "High" "Low"
Of Diamond Diamond Diamond
Valuation Price Price Price
Bulk Sample Largest Model Model Model
Sampling (Carats) Diamonds (US$/Carat) (US$/Carat) (US$/Carat)
Program (1) (Carats) (2) (2) (2)
--------------------------------------------------------------------------
2007 1,566 9.45, 7.03, $ 52 $ 72 $ 39
6.03, 5.17,
4.84, 4.35,
4.19
--------------------------------------------------------------------------
2006/2005 509(3) 7.11, 3.91, $ 46 $ 62 $ 41
2.34
--------------------------------------------------------------------------
Combined 2,075(4) $ 51 $ 70 $ 43
--------------------------------------------------------------------------
(1) Sample weights represent the total carat weight of diamonds presented
for valuation following the combination of individual sub-samples and
after acid cleaning.
(2) As determined by WWW International Diamond Consultants Ltd.
(3) Values from the WWW October, 2006 price book, as reported by Peregrine
on November 6, 2006.
(4) The combined sample was re-priced and modelled based on the WWW
October 31, 2007 price book.

The modelled price estimates for DO-27 represent an average diamond
price in the rough diamond market in November, 2007 that might reasonably
be expected, based on standard production-scale recoveries of commercial
sized diamonds greater than 1.00 mm in size.

The most valuable diamonds in the 2007 parcel were a 4.35 carat fancy
yellow octahedron and a 4.19 carat white stepped octahedron, both valued
at US$1,900 per carat (see photograph at:
http://www.pdiam.com/i/photos/2x4caraters.jpg).

In addition to determining a modelled average price, WWW showed a 1,123
carat parcel from the Main Lobe PK lithology from the 2007 bulk sample to
four other internationally recognized, Antwerp-based rough diamond
valuators in order to obtain additional market-based, unmodelled
valuations. This parcel was selected for spot price valuation as it was
the single largest representative parcel of Main Lobe PK diamonds.
Average October, 2007 spot prices for the 1,123 carat parcel of US$46,
US$48, US$52 and US$56 per carat respectively were determined by the four
groups whereas the average spot price determined by WWW was US$46 per
carat.

WWW believes it is highly unlikely that the modelled average price will
be lower than the minimum values and that the high values should not be
considered maximum values. The modelled average price is extremely
sensitive to the value of large diamonds so there is a high degree of
uncertainty in the modelled value of the larger stones that would be
expected in a production scenario. This is an important fact given that
the 2,075 carat parcel submitted for modelling contained only 22 stones
greater than two carats and five stones greater than five carats.

Diamond price models principally attempt to correct for an absence of
large diamonds which are typically under-represented at this scale of
bulk sampling. WWW commented that the bulk samples are still considered
small for fully modelling the average dollar value per carat. Usually,
the average diamond price from a bulk sample is lower than the average
diamond price for the resource in a mining scenario. WWW has indicated
that for typical kimberlite diamond mines, 7,000 carats would usually
give an unmodelled average price within 10 percent of the true value of a
production scenario and a 3,000 carat parcel an unmodelled true value
within 15 percent. After modelling of the price for a 3,000 carat parcel,
confidence limits would be expected to tighten to within 10 percent.

FUTURE WORK

Information from the 2005, 2006 and 2007 bulk sampling, core drilling and
diamond valuation programs is being used by AMEC to construct geological
and resource models for DO-27. The results of that work will allow the
completion of the PTA by AMEC. The PTA will investigate possible mining
and processing scenarios for DO-27 based on the geological and resource
models. As reported on July 24, 2007, the PTA will include a study of
alternative front-end processing techniques to take advantage of the
soft, low work index, characteristics of DO-27 kimberlite. The final
completion of the PTA, and associated resource models, is expected in the
second quarter of 2008. As part of the resource model portion of the PTA,
average grade and average per carat diamond values for DO-27 may be
adjusted to optimize recovery cut-off sizes to better reflect potential
mining and processing scenarios.

Though Peregrine and WWW recognize that a larger diamond parcel from
DO-27 would result in higher confidence levels in the average diamond
value, Peregrine believes that all the data currently in hand are
sufficient to allow a reasonable assessment of the economic potential of
DO-27 in the PTA. Therefore, no additional bulk sampling campaigns are
currently planned at DO-27 for the winter 2008 field season.

Jennifer Pell, Ph.D., P.Geo., Chief Geoscientist for Peregrine Diamonds
Ltd., is the Qualified Person under NI 43-101, for work on the DO-27
kimberlite. Ms. Pell monitored the valuation process in Antwerp for
Peregrine. Howard Coopersmith, an internationally recognized consultant
to the diamond industry, was Peregrine's external Qualified Person for
the 2005, 2006 and 2007 bulk sampling programs. Quality control and
assurance protocols and procedures for the processing, transport,
recovery, valuation and security of the diamonds conform to industry
standard Chain of Custody provisions and were reviewed and verified by
both Peregrine's internal and external Qualified Person.

Peregrine is a Canadian diamond exploration/development company that is
managed by experienced geoscientists. In addition to work on the DO-27
kimberlite, Peregrine is also exploring for other diamondiferous
kimberlites on its extensive land holdings in Canada. As reported on
November 22, 2007, Peregrine has discovered a new diamondiferous
kimberlite field on the Nanuq property in the eastern Arctic region of
Nunavut. Peregrine trades on the Toronto Stock Exchange under the symbol
"PGD".

Forward-Looking Statements: This document includes forward-looking
statements. Forward-looking statements include, but are not limited to
statements concerning Peregrine's projects and other statements that are
not historical facts. When used in this document, the words such as
"could", "confident", "plan", "estimate", "expect", "anticipated",
"intend", "likely", "may", "potential", "should", "scheduled",
"significant", and similar expressions are forward-looking statements.
Although Peregrine Diamonds Ltd. believes that its expectations reflected
in these forward-looking statements are reasonable, such statements
involve risk and uncertainties and no assurance can be given that actual
results will be consistent with these forward-looking statements.
Important factors that could cause actual results to differ from these
forward-looking statements are disclosed in the corporation's periodic
filings with Canadian regulators.

Contacts:
Peregrine Diamonds Ltd.
Jim Crawford
Manager - Investor Relations
(604) 408-8880
(604) 408-8881 (FAX)
Email: jim@pdiam.com
Website: www.pdiam.com

Copyright 2007, Market Wire, All rights reserved.

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