March 2, 2005    NEWS RELEASE

BULK SAMPLE ON KIMBERLITE PIPE COMMENCED FEB. 25, 2005

George Stewart, President of Kettle River Resources Ltd. has received notice from Mr. Eric Friedland, President of Peregrine Diamonds Ltd. (“Peregrine”) that the extraction of a 200 tonne bulk sample began on February 25, 2005 at the DO-27 (Tli Kwi Cho) kimberlite pipe located near Lac de Gras, Northwest Territories, Canada.

 The 200 tonne kimberlite sample will be extracted from five holes using a 14-inch diameter Reverse Circulation (RC) drill rig.  The average hole depth will be 250 meters and test the centre of the Southern Lobe of the pipe. The kimberlite material will be processed at BHP Billiton’s Ekati™ Diamond Mine during mid to the end of March, in order to determine macro grade and diamond quality.  The cost of the bulk sample will be borne entirely by Peregrine. Once the complete results of the bulk sample are provided, Peregrine will increase its ownership in the joint venture from 38.475% to 54.475% and become the operator.

 In addition, immediately following the extraction of the 200 tonne sample, an NQ sized core drilling program is planned.  Three holes will be drilled to a depth of 250 meters and 2 holes to 600 meters at an estimated cost of $500,000. The intent is to have these holes twin the 5 RC holes and will be used for technical purposes. The core will be logged and stored pending the analysis of the 200 tonne sample before being subjected to caustic fusion and micro diamond grade analysis.

None of the diamond core holes in 1993 extended beyond a depth of 215 meters. The 1994 underground bulk sample drift leveled out at 100 meters below the surface, or only 50 meters below overburden, and does not appear to have tested the drill indicated higher grade portion of the Southern Lobe. A model of the pipe, built by Kettle River, depicted the presence of grade zoning throughout the kimberlite.  In preparation for the current testing, Peregrine produced a computer generated model of the DO27 showing drilling and drift.

 DHK Diamonds Inc., equally owned by Dentonia Resources Ltd., Horseshoe Gold Mining Inc., and Kettle River Resources Ltd. currently holds a 28.8% interest in the project.