Peregrine Diamonds Announces Closing of $10.28 Million Rights Offering

VANCOUVER, CANADA--(Marketwired - Aug. 17, 2017) -

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Peregrine Diamonds Ltd. (TSX:PGD) ("Peregrine" or the "Company") is pleased to announce that its rights offering of $10,282,603, which was announced on July 10, 2017, has been completed in full.

An aggregate of 102,826,031 common shares were issued pursuant to the offering. Peregrine plans to use the net proceeds from the rights offering towards its 2017 drill program at its Chidliak Project, to pay general and administrative costs and to repay an unsecured related party note payable to Eric Friedland, the Company's Chairman.

"We are very gratified with the strong reception the rights offering received from our shareholders and we greatly appreciate their support. The fact that the offering was oversubscribed by 37% (67% excluding insiders) demonstrates a substantial vote of confidence in the Company and our Chidliak Project," said Tom Peregoodoff, Peregrine's President and Chief Executive Officer. "The proceeds from the offering will be used to further the ongoing resource development activities at Chidliak and we look forward to delivering more positive results from the ongoing drilling program."

Approximately 86% of the shares, being 88,454,820 shares, were issued in the basic subscription of the rights offering, of which 45,833,568 shares were issued to insiders of the Company and 42,621,252 shares were issued to all others. A total of 52,975,589 shares were applied for under the additional subscription provision, of which 14,371,211 shares were issued representing 14% of the shares, of which 99.9% of these shares were issued to non-insiders of Peregrine and less than 0.1% were issued to insiders. A total of 102,826,031 shares were issued collectively under the basic and additional subscriptions which represents 100% of the offering. Accordingly, no shares were issued pursuant to the standby commitment agreement. As compensation for the standby commitment, the Company paid an aggregate commission in the amount of $23,607 and issued 2,000,000 common share purchase warrants, each warrant exercisable for a term of two (2) years at an exercise price of $0.20 per share.