VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 17, 2016) - Peregrine Diamonds Ltd. ("Peregrine" or "the Company") (TSX:PGD) is pleased to announce that core drilling has commenced on the 100% owned Sikwane Project in Botswana. Sikwane is located approximately 50 kilometres east of Gaborone, the capital of the Republic of Botswana.

SIKWANE KIMBERLITE DRILL PROGRAM

The Sikwane prospecting licence covers 453 km2 and contains nine kimberlites discovered through drilling by De Beers in 1997. A thorough assessment of relinquishment reports held at the Botswana Geological Survey shows that De Beers drilled percussion holes targeted on detailed Kimberlite Indicator Mineral ("KIM") anomalies with limited ground geophysics support. Interpretation of available KIM garnet and ilmenite chemistry shows that the Sikwane kimberlites contain diamond-compatible KIMs and the kimberlites have moderate to high diamond potential. Diamonds have been recovered from surface samples and from down-hole samples at the Sikwane kimberlites, although diamond abundance and size distribution data are not available. De Beers recovered limited core from the drilling program and due to the limitations of percussion drilling, the geological relationships between kimberlite and country rock granite are unresolved.

Core drilling of five of the Sikwane kimberlites is planned. The program is designed to resolve the kimberlite-granite relationships and collect carefully controlled kimberlite samples for microdiamond and KIM analysis. Five vertical core holes of 100 metres each are planned.

The total budget for the program is CDN$140,000.