Diamond Rights:

Property Location Click here to view enlarged... Kimberlite Indicator Mineral Train Click here to view enlarged...

40% Indicator Minerals Inc. / 40% Peregrine Diamonds Ltd. / 20% Hunter Exploration Group (Core)

Property Size:
51 Mineral Claims - 81,000 acres

Location:
Located approximately 300km northeast of the community of Baker Lake in the Nunavut Territory.

Value:
Kimberlite discovered on property. In addition, large, diamondiferous kimberlites discovered on adjacent Nanuq property, strategic land package containing excellent mineral chemistry.

Overview:
Exploration expenditures on the 33,100 hectare Nanuq North property are currently funded on a 50/50 basis by Peregrine Diamonds Ltd. ("Peregrine") (TSX: PGD) and Indicator. Under the terms of a letter agreement, the Hunter Exploration Group ("Hunter") retains a 20 percent interest and Peregrine and Indicator each retain 40 percent interests in 16 claims covering 13,900 hectares, including the claim that hosts NQN-001. Hunter also retains a two percent gross overriding royalty on these claims and their 20 percent interest is carried through completion of a scoping study. Peregrine and Indicator each have an undivided 50 percent interest in the remaining 19,200 hectares of claims at Nanuq North. Indicator is the operator of the project.

The Nanuq North mineral claims were acquired to capture the potential source(s) of a kimberlite indicator mineral train with diamond inclusion chemistry, identified by Peregrine Diamonds during the last few field seasons on the Nanuq property.

Till sampling suggested that the source of the kimberlite indicator mineral train could be located on the Nanuq North Diamond Project. The kimberlite indicator minerals recovered from the 36km long train include eclogitic garnets and chromites with diamond inclusion chemistry. Several samples yielded pyrope garnets with kelyphite rims and one sample yielded a pyrope garnet with a kimberlite mantle, indicating a close proximity to source. Peregrine Diamonds recently announced three diamond bearing kimberlites have been discovered on the Nanuq property.

Kimberlite NQN-001 was discovered during a short, late season drill campaign. Based on ground geophysical data, NQN-001 is interpreted as having a minimum surface area of 4.5 hectares. The discovery hole, inclined at -58°, terminated in kimberlite after a continuous intersection between seven and 87m. A 150 kg sample of the kimberlite has been sent to the Saskatchewan Research Council laboratory for diamond analysis. The partners are currently planning the 2009 program.