Robert M. Friedland: Press Release

ROAD TOWN, BRITISH VIRGIN ISLANDS--(Marketwired - Aug. 17, 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. ("Peregrine"), and specifically, Peregrine's rights offering to its shareholders to purchase new Peregrine common shares. See Peregrine's August 16, 2017 press release for additional detail on the rights closing.

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

Newstar also entered into a standby purchase agreement with Peregrine and others (the "Standby Purchase Agreement") pursuant to which Newstar agreed 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 3,966,972 common shares. Newstar exercised its Rights in full on August 15, 2017 and received 26,033,028 common shares. No participation under the Standby Agreement was required by Newstar as the rights offering was oversubscribed.

Prior to this acquisition of Rights, Newstar owned 85,908,993 common shares representing 25.32% of Peregrine's issued and outstanding common shares. Following the exercise of Rights, Newstar has actual ownership of 111,942,021 common shares. This represents an actual ownership percentage of 25.32% of the Company's issued and outstanding common shares and common shares issued from Peregrine's rights offering. All of these securities are beneficially owned and controlled by Robert M. Friedland.

Newstar acquired the common shares 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 the Company's profile on the SEDAR website at www.sedar.com.

Signed, Robert M. Friedland