VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct 22, 2015) - Peregrine Diamonds Ltd. ("Peregrine" or "the Company") (PGD.TO) is pleased to announce that mobilization of a rotary air-blast (RAB) drill rig has commenced and drilling is expected to begin on October 23 on the first of four kimberlite targets at its 100% owned Moralane license in east-central Botswana, and to provide an update on exploration activities for three other project areas in Botswana.

Target Drill Testing at Moralane

The Moralane license covers 664 km² and hosts a compelling kimberlite indicator mineral ("KIM") anomaly that is underlain by recently identified isolated magnetic anomalies. Historic drilling in the area has failed to identify the source of the KIM anomaly. Magnetic data from eleven ground geophysical surveys completed by Peregrine during September 2015 have been interpreted and modelled. The recent magnetic survey has identified four new, high priority targets which will be tested with a 16.5 centimetre RAB drill:

• Target 15-10S measures 540 x 200 metres with a modelled target depth of 60-80 metres.
• Target 15-10N measures 535 x 360 metres with a modelled target depth of 120-130 metres.
• Target 15-07 is 38 hectares with a modelled target depth of 100 metres.
• Target 15-11 is 500 metres in diameter with a modelled target depth of 120-130 metres.

The Kalahari overburden in the vicinity of the Moralane drill targets is known from prior drilling to vary from 10 to 25 metres depth, and is underlain by up to 240 metres of Late Triassic to Early Jurassic Upper Karoo sediments. The Moralane kimberlite drill targets are modelled to intrude these Karoo sediments and this setting could accommodate causative magnetic sources with ages consistent with the Late Triassic Jwaneng kimberlites.

A total of 570 metres in four vertical holes will be drilled in this first phase. Drilling is expected to be completed in early November.

Dr. Herman Grutter, Vice President, Technical Services said, "The Moralane area hosts some of the most compelling and unexplained indicator mineral chemistry in Botswana. These indicator minerals are compositionally unique within the Botswana context and cannot be explained by any of the known kimberlite clusters in the region. The diamond potential as shown by this chemistry is similar to KIM chemistry from such well known diamond mines as Finsch (over 130 million carats produced to date), and Jwaneng (currently produces 11 million carats per year). We are looking forward to resolving the source of these KIMs through this focussed drill program."

Target Generation at Malolwane, Gope and Nata