PROPOSED MERGER Dunsmuir, Peregrine to Join Forces

VANCOUVER PEREGRINE DIAMONDS and DUNSMUIR VENTURES have signed a binding letter agreement to merge the two companies under the Peregrine Diamonds name. Together they will control a portfolio of diamond exploration projects in northern Canada and copper/gold projects in Latin America.

The new corporate entity will issue one common share for each one outstanding common share of the old Peregrine and one common share for every five outstanding common shares of Dunsmuir. Outstanding options, warrants and convertible securities will also be exchanged. Terms of the merger require Peregrine to raise $3 million by way of private placement prior to closing, and it is proceeding with a flow-through share issue.

Management of the new Peregrine Diamonds will consist of president Eric Friedland; COO Alan Carter; executive VP of corporate development Art Ettlinger; VP exploration, metals Jeff Toohey; and VP exploration, diamonds Jennifer Pell. For further information about either company visit www.PeregrineDiamonds.com and www.DunsmuirVentures.com.