Peregrine Announces $10-Million Financing

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 10/25/12 -- Peregrine Diamonds Ltd. ("Peregrine" or "the Company") (TSX: PGD) is pleased to announce a $10-million financing with both Newstar Securities SRL ("Newstar"), a company wholly owned by Robert Friedland, and with Dundee Corporation ("Dundee").

Under the terms of the financing, Newstar will purchase 16.4 million shares and Dundee will purchase 3.6 million shares of Peregrine from treasury, for a total of 20 million shares, priced at $0.50 per share, for total net proceeds of $10-million. The shares have a four month hold period. Taking into account this financing, Newstar will own 13.20 percent and Dundee will own or control 18.14 percent of Peregrine on an undiluted basis, including shares held in managed accounts.

Eric Friedland, Peregrine's CEO, said "We are delighted to have Robert Friedland join Ned Goodman as a significant strategic shareholder of Peregrine. Robert and Ned are two of the best mining financiers in the world and they will provide invaluable support as we continue to move forward with De Beers to confirm a diamond mine at Chidliak. This financing should provide Peregrine with the necessary working capital to fund its administrative costs and currently planned exploration initiatives through mid 2014, including the $2.5-million payment due to BHP Billiton in that year."

The financing is expected to close this week and is subject to TSX approval.

About Peregrine Diamonds

Peregrine Diamonds is a diamond exploration and development company focussed on Canada's North. Peregrine has discovered two new diamond districts in Nunavut, Nanuq in 2007 and Chidliak in 2008. At its 72 percent owned, nine hectare DO-27 kimberlite in the Northwest Territories, located only 27 kilometres from the Diavik Diamond Mine, a NI 43-101 compliant 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, which is open at depth, was confirmed in 2008. At its 100 percent-owned Chidliak project, located 120 kilometres from Iqaluit, the capital of Nunavut, the Company has discovered 61 kimberlites to date, and is preparing to collect the first bulk samples from up to 6 kimberlites that exhibit economic diamond mining potential. Peregrine also continues to evaluate earlier stage diamond exploration projects it controls in Nunavut and the Northwest Territories.

Forward-Looking Statements: This news release contains forward-looking statements. 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 exercise of the option to joint venture by De Beers, the proposed exploration programme, funding availability, anticipated exploration results, resource estimates 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 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 the exercise of the option to joint venture by De Beers, availability and cost of funds, timing and content of work programmes, results of exploration activities, interpretation of drilling results and other geological data, world diamond markets, future diamond prices, 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 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.

Contacts:

Peregrine Diamonds Ltd.

Mr. Eric Friedland

CEO

604-408-8880


Peregrine Diamonds Ltd.

Mr. Brooke Clements

President

604-408-8880


Peregrine Diamonds Ltd.

Mr. Tom Peregoodoff

Executive VP, Business Development

604-408-8880


Peregrine Diamonds Ltd.

Investor Relations

604-408-8880
investorrelations@pdiam.com
www.pdiam.com