Peregrine Diamonds Ltd. recently announced that it will be offering rights to holders of its common shares of record at the close of business on November 30, 2015 (the "Record Date"), expiring January 26, 2016 ("Expiry Date"). The offering will be made in all of the provinces of Canada and in such other jurisdictions where the Company is eligible to make such offering. All of Peregrine's executive officers and directors intend to fully participate in the rights offering.

Shareholders of record on November 30, 2015 will receive one right for each common share held. Four (4) rights will entitle the holder to purchase one common share at a price of $0.10 per common share. Exercise of the rights and purchase of the common shares must be completed by 2:00 p.m. (Vancouver time) on the Expiry Date. Shareholders who fully exercise their rights are entitled to subscribe pro rata for additional common shares, if available, that were not subscribed for initially on or before the Expiry Date. A fully subscribed rights offering will raise gross proceeds of $7 million, which will be used to further the remainder of its 2015/2016 Chidliak Diamond Resource Development Program, which includes delivery of a Preliminary Economic Assessment, fund the Company's 2016 Chidliak work program, advance Botswana Exploration and for general corporate purposes and expenses. The proceeds may also be used for working capital.

The common shares of the Company are expected to commence trading on the TSX on an ex-rights basis at the opening of business on November 26, 2015, meaning that common shares purchased on, or following that date will not be entitled to receive the rights under this offering. At that time, the rights are expected to be posted for trading on the TSX on a "when issued" basis and will thereafter trade under the symbol "PGD.RT". Trading of the rights is expected to continue until 9:00 a.m. (Vancouver time) on the Expiry Date.

A rights offering circular together with rights certificates will be mailed to eligible shareholders on or about December 2, 2015. Registered shareholders wishing to exercise their rights must forward the completed rights certificates, along with the applicable funds to Computershare Investor Services Inc. by the Expiry Date. Shareholders who own their shares through an intermediary, such as a bank, trust company, securities dealer or broker, will receive materials and instructions from their intermediary.

No U.S. Registration

This news release does not constitute an offer to sell, or the solicitation of an offer to buy securities in any jurisdiction, including the United States. The securities offered under the Rights Offering will not be or have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or the securities laws of any state of the United States, and may not be offered or sold in the United States or to, or for the account or benefit of, any U.S. Person (as defined in Regulation S of the Securities Act) or person in the United States, unless an exemption from such registration requirements is available. Certain institutional accredited investors in the United States will be permitted to participate in the Rights Offering on a private placement basis upon satisfying the Company that they qualify for an exemption from the registration requirements of the Securities Act and any applicable securities laws of any state of the United States.

Chidliak Update

The 558.5 wet tonne bulk sample collected from CH-7 in 2015 consists of units KIM-2, KIM-3, KIM-4 and KIM-5. Dense Media Separation ("DMS") processing to a concentrate at the Saskatchewan Research Council is now complete for the KIM-3, KIM-4 and KIM-5 samples and final diamond recovery and sorting is in progress for concentrates from these three units. DMS processing of the KIM-2 bulk sample material has commenced. The bulk sample results will provide diamond grades for kimberlite units KIM-2, KIM-3, KIM-4 and KIM-5, and representative diamond parcels for independent valuation.

Partial results for individual geological units may be released as they are received. The complete bulk sample result for CH-7 is expected in early January, 2016 with diamond valuation results expected in the first quarter of 2016 as previously reported.

On November 17, 2015 Peregrine announced new microdiamond results from the CH-6 and CH-7 kimberlites. The program was designed to prove up resource expansion opportunities at the CH-6 and CH-7 kimberlites. Interpretation of the CH-7 results supports an improved diamond content for the entire kimberlite pipe and confirms the exceptional diamond counts for the near-surface KIM-5 unit. The CH-6 results support continuity of the 2.58 carat per tonne ("cpt") grade in the dominant KIM-L unit and the potential to add an additional 1 million to 1.2 million tonnes, or an additional 2.5 million to 3.1 million carats to the existing 8.57 million carat Inferred Resource at CH-6 that occurs shallower than 250 metres of depth. This tonnage is currently considered as a Target for Further Exploration ("TFFE"). The TFFE is conceptual in nature and it is uncertain whether the 2015 Diamond Resource Development Program will result in this being delineated as a Mineral Resource.

The integration of these microdiamond results with the forthcoming CH-7 bulk sample results will enable the Company to maximize the Inferred Resource statements for the CH-6 and CH-7 kimberlites. The updated Inferred Resource will be included in a planned Preliminary Economic Assessment ("PEA"), scheduled for the second quarter of 2016.

Dr. Jennifer Pell, Peregrine's Chief Geoscientist, is a Qualified Person and is responsible for logging Chidliak kimberlite core, with attendant responsibility to select and secure representative samples for caustic fusion diamond analysis. Dr. Herman Grütter, Peregrine's Vice President, Technical Services, is a Qualified Person and is responsible for the design of the Diamond Resource Development Program at Chidliak. Mr. Alan O'Connor, Peregrine's Program Manager, Chidliak Resource Evaluation, is a Qualified Person and is responsible for the design and conduct of bulk sampling programs at Chidliak. Ms. Catherine Fitzgerald, Project Resource Geologist is a Qualified Person and is responsible for geological modeling of CH-6 and CH-7.