Robert M. Friedland: Press Release

ROAD TOWN, BRITISH VIRGIN ISLANDS--(Marketwired - July 25, 2017) - This press release is issued by Newstar Securities Investments Ltd. ("Newstar"), a company indirectly owned and controlled by Robert M. Friedland, pursuant to the early warning requirements of applicable securities legislation and National Instrument 62-103 with respect to securities of Peregrine Diamonds Ltd. (the "Peregrine"), and specifically, Peregrine's rights offering to its shareholders to purchase Peregrine common shares. See Peregrine's July 10, 2017 press release for additional detail on the rights offering.

On July 14, 2017, Newstar was issued 85,908,993 Peregrine rights ("Rights"), with each 3.3 Rights exercisable into one Peregrine common share at C$0.10, expiring August 15, 2017.

Newstar has also entered into a standby purchase agreement with Peregrine and others (the "Standby Purchase Agreement") pursuant to which Newstar agrees to fully subscribe for 26,033,028 common shares of the Company by exercising all of its Rights, and, if necessary, subscribe for a an additional amount of Peregrine common shares at C$0.10 per share, as a portion of any unsubscribed common shares in Peregrine's rights offering, up to a maximum of an additional 3,966,972 common shares.

Prior to the acquisition of Rights and the entering into of the Standby Purchase Agreement, Newstar beneficially owned 85,908,993 common shares representing 25.32% of Peregrine's issued and outstanding common shares. Following the acquisition of Rights and the entering into of the Standby Purchase Agreement, Newstar is deemed to have beneficial ownership of 111,942,021 common shares on exercise of the base Rights subscription, and 115,908,993 common shares if the standby commitment of Newstar is utilized in full. This represents a deemed beneficial ownership percentage of 25.32% of the Company's issued and outstanding common shares and common shares issued from Peregrine's rights offering, and 26.20% if the standby commitment of Newstar is utilized in full. As the Peregrine rights offering is fully backstopped, all percentage calculations are made on the basis that all 102,826,032 common shares issuable on exercise of Rights will be issued. All of these securities are beneficially owned and controlled by Robert M. Friedland.

Newstar acquired the Rights and entered the Standby Purchase Agreement for investment purposes. Depending on economic or market conditions or matters relating to the Company, Newstar may choose to either acquire additional common shares or dispose of common shares of the Company.

A copy of the early warning report filed under applicable Canadian provincial securities legislation in connection with this acquisition is available under Peregrine's profile on the SEDAR website at www.sedar.com.