DO-27 Drill results released: Diamonds with weights of 0.42, 0.22, 0.12 & 0.11 carats found in N.Q. diameter (47MM) core holes

 Kettle River Resources Ltd. has received recent core drilling results from operator Peregrine Diamonds Ltd. (“Peregrine”) (TSX-V: PGD) at the DO-27 kimberlite, WO Diamond Project, NWT, Canada who states that “New micro-diamond results indicate main vent of DO-27 may grade greater than 1 carat per tonne.” 

Peregrine reports “Results have returned consistent micro-diamond values indicating that the main vent of the plus 9 hectare pipe may grade greater than 1 carat per tonne.  All grade predictive curves based on micro-diamond sampling of the main vent have reached or exceeded 1 carat per tonne and have not approached asymptote (see grade predictive plot attached).”

“In the Spring and Summer of 2005, subsequent to the completion of a 151 tonne, mini-bulk sample of the main vent of DO-27, which graded 0.98 carats/tonne from the central portion of the pipe (see press release June 14, 2005 and August 29, 2005, Peregrine drilled a total of 2245 meters in 11 N.Q. core holes into DO-27.  Four holes were drilled into the main vent of the pipe and the remaining holes were drilled into the north-eastern subsidiary lobe of DO-27.” “The purpose of the core drilling was:

Ø       To better understand the internal geology and diamond distribution of DO-27 in relation to the two apparently different kimberlite phases encountered during the reverse circulation (“RC”), mini-bulk sample, drilling program.

Ø       To gain information on the extent and geology of the DO-27 pipe below 200 meters, and

Ø       To better understand the geology and diamond distribution of the north-eastern lobe of DO-27, and how it relates to the main pipe.”

“The complete micro-diamond results have now been received from the Saskatchewan Research and Geo-Analytical Council (“SRC”) for three holes (DO-27-05-02, DO-27-05-03, and DO-27-05-08) drilled into the main vent of DO-27, and all returned values consistent with a strongly diamondiferous kimberlite, as also evidenced by the 2005 mini-bulk sample.  The presence of large diamonds, up to 0.42 carats, in micro-diamond samples is extremely encouraging. The fact that relatively small diameter core holes (47 mm) are consistently encountering diamonds of this size bodes well for the ultimate grade of the pipe.”

“The micro-diamond results were also quite consistent throughout the pipe, with grade predictive plots indicating grades greater than 1 carat/tonne from the main vent which represents the majority of the DO-27 pipe.  Furthermore, the grade plots indicate that diamond grade is expected to be consistent at depths greater than 200 meters.  The grade predictive plots and a location map for the three holes is attached to this release and can also be viewed on Peregrine’s web site under “Press Releases.”  The micro-diamond results per sieve classes (in mm for square mesh), are summarized as follows:

* Lower sieve size given in mm, for square mesh.”

“Hole DO-27-05-02 was drilled to a depth of 459.5 meters (1509 feet), and ended in kimberlite, confirming that the DO-27 pipe extends to at least this depth.  All four holes drilled into the main vent of DO-27 intersected pyroclastic kimberlite (PK), which can be broadly subdivided into 3 textural varieties.  In the central part of the pipe, hole DO27-05-02 encountered a sequence of layered pyroclastics (LPK) to a depth of 341 meters.  This hole was drilled approximately 10 meters to the north of mini-bulk sample hole RC05-02 (which returned a grade of 0.96 carats/tonne) and is considered, at this time, to be representative of the central portion of the main vent.  Between 341 and 459.5 meters, at depths beyond what was tested in the 2005 RC, mini-bulk sample program, this hole intersected olivine macrocrystal pyroclastic kimberlite (OMPK) with grade predictive plots indicating grades consistent with the upper horizons.  Hole DO27-05-03, which was drilled approximately 10 meters to the south of mini-bulk sample hole RC05-03 (which returned a grade of 0.70 carats/tonne), intersected massive green pyroclastics (PK) to a depth of 230 meters.  The grade predictive plot from DO27-05-03 indicates grades may be higher than those in DO27-05-02, as the grade predictive curve for this hole has not yet reached asymptote at 3 carats per tonne. These encouraging micro-diamond results suggest that RC05-03 possibly under-stated the true grade of this part of the pipe possibly due to the smaller size of the sample for this zone. Hole DO27-05-08 was drilled from the north-eastern lobe into the main vent of DO-27.  This hole also encountered mainly massive green pyroclastics, texturally similar to those in Hole DO27-05-03.  Micro-diamond results from Hole DO27-05-08 are consistent with those from the central part of the pipe.  The fourth hole drilled into the main vent has not been sampled at this time as the 2006 bulk sample will be extracting kimberlite from this zone.  These micro-diamond results suggest that all the pyroclastic kimberlite units (PK, LPK & OMPK) encountered thus far in the main vent of DO-27 are likely to grade 1 carat per tonne or better.”

“The geology of the north-eastern lobe of DO-27 is more complex than the main vent, consisting of an upper volcaniclastic unit, a pyroclastic unit similar to, and apparently contiguous with, the main vent (PK unit) and a lower, highly variable volcaniclastic unit underlain by a variety of volcaniclastic microbreccias and hypabyssal rocks.  Complete micro-diamond results for the 7 N.Q. core holes drilled into this zone will be released when all the results are received from SRC. A large bulk sample of DO-27 is scheduled to begin shortly (see press release dated January 17, 2006).  More information concerning this bulk sample will be released as the program progresses.”

“Peregrine's diamond exploration programs are conducted under the direction of Dr. Jennifer Pell, Vice President Exploration, P. Geo., (BC), P.Geol. (NT/NU), a qualified person under NI 43-101.”

Kettle River owns one third of DHK Diamonds Inc. a private company that has a 20% interest in the WO Project operated by Peregrine.

 Kettle River Resources Ltd.

 Ellen Clements

Director, President