Peregrine Diamonds Ltd. has acquired eight highly prospective diamond Prospecting Licences, covering 5,746 km2 in Botswana as a result of its agreement to acquire Diamexstrat Botswana (Proprietary) Ltd., a privately held Botswana registered diamond exploration and development company.

Under the agreement signed by Peregrine with Diamond Exploration Strategies Limited, a UK registered private company, the former will acquire all of the shares of DES Botswana in consideration for the grant of a 1% gross overriding royalty on all precious stone mineral interests. Certain milestones were also defined under which Peregrine can buy out the royalty. In addition, Peregrine will assume a $450,000 loan that is currently owed by DES Botswana to DES UK and which was originally advanced by Peregrine.

The eight Prospecting Licences include 4,825 km2 of licences situated in two areas along the 'Cretaceous kimberlite corridor', where modern diamond exploration techniques could result in kimberlite discoveries that were overlooked by previous techniques. In addition, three other areas have unresolved geophysical and kimberlitic indicator mineral anomalies with very good mineral chemistry. Many of the targets require only limited ground geophysical surveys in order to be 'drill ready'.

Over the last eight months the DES team has compiled approximately 25 years' worth of diamond exploration, drilling and source-kimberlite data for Botswana from publicly-available sources.

Tom Peregoodoff, President and CEO commented "With this single transaction, we have become a significant diamond exploration player in Botswana. The principals of DES Botswana have over 60 years of combined diamond exploration experience in the country, most of that time with the De Beers Group. Using their extensive experience, they have compiled a county-wide data set that is unparalled in its scope and depth. They have assembled what we believe is the most prospective land package for new diamond discoveries in Botswana. This is one of the most compelling diamond exploration opportunities that I have seen in many years. Exploration work is ongoing and we expect to be drilling kimberlite targets in 2015."

Eric Friedland, Executive Chairman said, "This transaction immediately gives Peregrine access to some of the world's most prospective diamond hunting ground. Botswana is the largest producer of diamonds in the world by value. It is true Tier 1 diamond mine country as shown by such world class diamond mines as Orapa and Jwaneng. We believe there is tremendous diamond discovery potential in Botswana and the unique combination of the DES team with the Peregrine team gives us a real competitive advantage."