January 26, 2015 Peregrine Diamonds Ltd. ("Peregrine" or "the Company") (TSX:PGD) is pleased to report a 15 percent increase in the Inferred Mineral Resource estimate for the upper 250 metres of the CH-6 kimberlite pipe, and a 23 to 26 percent increase in the estimate of additional kimberlite tonnage at CH-6. The tonnage estimates for the CH-7 and CH-44 kimberlite pipes have also significantly increased by 35 to 51 percent and 10 to 56 percent respectively. The Canadian National Instrument ("NI") 43-101-compliant Inferred Mineral Resource and tonnage estimate expansions are a result of drill programs completed by the Company in 2014. The CH-6, CH-7 and CH-44 kimberlite pipes are located on Peregrine's 100 percent-owned Chidliak project ("Chidliak") on Baffin Island, 120 kilometres from Iqaluit, the capital of Nunavut, Canada. The updated CH-6 Inferred Mineral Resource and tonnage estimate ranges for CH-6, CH-7 and CH-44 are presented in the following tables. On May 7, 2014, Peregrine reported the initial, or "maiden" Inferred Mineral Resource and an additional kimberlite tonnage estimate for CH-6, and maiden kimberlite tonnage estimates for CH-7 and CH-44. The objective of Peregrine's ongoing resource development program is to further expand the Inferred Mineral Resource at CH-6 and convert the tonnage estimates at CH-7 and CH-44 to Inferred Mineral Resources. CH-6 KIMBERLITE INFERRED MINERAL RESOURCE ESTIMATE Kimberlite Tonnes (millions) Updated Tonnes (millions) Maiden Carats (millions) Updated Carats (millions) Maiden Grade (carats per tonne) Tonnage Increase (%) CH-6 3.32 2.89 8.57 7.47 2.58 15 CH-6, CH-7 AND CH-44 KIMBERLITE TONNAGE ESTIMATE RANGES Kimberlite Tonnes (millions) Updated Tonnes (millions) Maiden Maximum Depth (m) Tonnage Increase (%) CH-6* 3.20 to 4.38 2.60 to 3.47 380 23 to 26 CH-7 3.72 to 6.01 2.75 to 3.97 290 35 to 51 CH-44 1.27 to 3.19 1.16 to 2.05 250 10 to 56 Total 8.19 to 13.58 6.51 to 9.49 - 26 to 43 *The CH-6 tonnage estimate is in addition to the 3.32 million tonne Inferred Mineral Resource. Mr. Brooke Clements, Peregrine's President said "The Peregrine team, including its contractors and local employees, delivered once again in 2014, efficiently and safely. It is very satisfying to see that our drill programs resulted in significant increases of the diamond resource at CH-6 and tonnage estimates at CH-6, CH-7 and CH-44. It is important to note that all of the resource expansion at CH-6 was near surface, above 120 metres depth. We are confident that more core drilling and the collection of bulk samples in 2015 will allow us to continue to grow the Chidliak diamond resource and complete a Preliminary Economic Assessment in 2016." The kimberlite tonnage estimates that have been identified at CH-6, CH-7 and CH-44 are currently classified as targets for further exploration and are conceptual in nature. There has currently been insufficient exploration to define a mineral resource on those targets and it is uncertain if further exploration will result in the tonnage estimates being delineated as a mineral resource. Geostrat Consulting Services Inc. ("Geostrat"), a consulting firm specializing in geological modelling and resource evaluation for diamonds and other commodities prepared the CH-6 Inferred Mineral Resource estimate and verified the kimberlite tonnage estimates for CH-6, CH-7 and CH-44. A detailed technical report, prepared in accordance with NI 43-101, will provide more details on this work and will be available within 45 days on SEDAR and the Company's website. UPDATED CH-6 INFERRED RESOURCE AND ADDITIONAL TONNAGE ESTIMATES The CH-6 resource and tonnage estimate was revised upwards based on data from 1,183 metres of core drilling in five holes and 352 metres of small diameter reverse circulation ("RC") drilling in 24 holes completed in 2014. The additional tonnage estimate for CH-6 of between 3.20 and 4.38 million tonnes is between 80 and 380 metres depth below surface. It is estimated that between 1.83 and 2.01 million tonnes of the estimate is between 80 and 250 metres depth. On February 26, 2014, Peregrine reported an average diamond price of US$213 per carat and a modelled price range between US$163 and US$236 per carat for a 1,013.5 carat parcel of commercial-size diamonds from the CH-6 kimberlite. The diamond valuation was conducted by WWW International Diamond Consultants Ltd. The CH-6 kimberlite has a surface expression of approximately one hectare and is open at depth. The revised Inferred Mineral Resource estimate was determined by integrating kimberlite volumes with density, petrology and diamond content data utilizing a geological model prepared by Peregrine personnel and reviewed by Geostrat. Size frequency analyses of diamond results from the 404.2 tonne bulk sample collected at surface in 2013, the 13.76 tonne mini-bulk sample of drill core collected in 2010 and caustic fusion diamond results from representative samples of drill core were undertaken to confirm the continuity of mineralization with depth and the consistency of the diamond population throughout the kimberlite. NI 43-101 standards and Canadian Institute of Mining and Metallurgy guidelines stipulate that a Mineral Resource needs to have a "reasonable prospect of economic extraction". In assessing whether the CH-6 Inferred Mineral Resource met this standard, Geostrat considered publicly available costs from northern Canadian diamond projects relative to the total estimated in-situ value of the CH-6 Mineral Resource and concluded that there is a reasonable prospect of economic extraction. UPDATED CH-7 AND CH-44 REVISED TONNAGE ESTIMATES The updated tonnage estimates for CH-7 and CH-44 were determined from geological models of the kimberlites prepared by Peregrine personnel and verified by Geostrat. The models were updated utilizing data from the 2014 drill program. At CH-7, 1,128 metres of core drilling in seven holes and 585 metres of RC drilling in 36 holes was completed. At CH-44, 994 metres of core drilling in six holes and 314 metres of RC drilling in 30 holes was completed in 2014. The CH-7 kimberlite, located approximately 15 kilometres southeast of CH-6, has a surface expression of approximately one hectare. The 3.72 million tonnes estimated to 160 metres below surface (the low estimate), is considered reasonably defined with good drilling support. The remaining 2.29 million tonnes estimated from 160 to 290 metres below surface has been identified with limited drilling support and the confidence level will increase with more drilling. As reported on November 22, 2010, a 47 tonne mini-bulk sample collected from the surface of CH-7 returned a grade of 1.04 carats per tonne. The CH-44 kimberlite, located approximately 17 kilometres southeast of CH-6, has a surface expression of approximately 0.5 hectare. The 1.27 million tonnes estimated from surface to 120 metres depth (the low estimate), is considered reasonably defined with good drilling support. The remaining 1.92 million tonnes estimated from 120 to 250 metres below surface has been identified with limited drilling support and the confidence level will increase with more drilling. Very encouraging caustic fusion diamond results from 535 kilograms of CH-44 kimberlite reported on November 21, 2011 have a similar diamond size distribution to that obtained from the 47 tonne mini-bulk sample collected from the CH-7 kimberlite in 2010 where the grade was 1.04 carats per tonne. CHIDLIAK ACTIVITY UPDATE New caustic fusion diamond results from samples collected from over one tonne of drill core acquired from the CH-6, CH-7 and CH-44 kimberlites in 2014 have been sent to a specialist external Qualified Person to interpret and verify their significance. The results will be reported when the interpretation is complete. The new diamond results and information from updated geologic models will be used to finalize the details of the 2015 bulk sampling program. Work continues at the Chidliak site in preparation for the bulk sampling of key kimberlites by large diameter RC drilling in 2015. The Company provided an update on the bulk sampling program on December 8, 2014. Current plans call for the collection of approximately 1,000 cumulative tonnes of kimberlite from the CH-6, CH-7 and CH-44 kimberlites in 2015. The 2015 work is designed to confirm continuity of diamond grade throughout these kimberlites and obtain representative parcels of diamonds for valuation. A crew at the Sunrise Lake camp continues to build an ice airstrip in preparation for a Hercules aircraft that will be used to transport drill and support equipment to site. The first overland trip from Iqaluit to site in 2015 by Snowcat was completed this month. The large diameter RC drilling is expected to commence in early March. Photos of current Chidliak activities can be found on the Company's website: www.pdiam.com/2015BulkSample