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Peregrine Diamonds Yields 96 Larger Diamonds from Chidliak Project in Canada

Peregrine Diamonds Ltd. (TSX:PGD) has reported a coarse diamond size distribution in a 74.4 kilogram sample collected by core drilling from the CH-20 kimberlite located on the 8,580 square kilometre Chidliak project, Baffin Island, Nunavut, Canada.

The sample yielded 96 diamonds larger than the 0.106 mm sieve size, including two diamonds larger than the 0.850 mm sieve size which weigh a total of 0.036 carats. CH-20 is located approximately 100 metres north of the CH-6 kimberlite and 250 metres south of the CH-10 kimberlite. As announced on December 6, 2010, a 14.11 tonne mini-bulk sample collected from CH-6 returned an average grade of 2.84 carats per tonne. As announced on November 12, 2009, a 111.4 kilogram sample collected from CH-10 yielded 152 diamonds larger than the 0.075 mm sieve size including two stones larger than the 0.600 mm sieve size.

The CH-20 and CH-10 kimberlites are represented by two of four magnetic anomalies referred to as the String of Pearls that are aligned along a 600 metre trend in a north-northwest direction from CH-6. Two of these magnetic anomalies and the associated structural trend have yet to be drill tested. The String of Pearls as well as other associated magnetic low anomalies located several hundred metres to the east, present an opportunity to discover significant additional kimberlite tonnage in the vicinity of CH-6. CH-6 and the String of Pearls, along with five additional diamondiferous kimberlites with economic potential in Arctic settings, are located within an area that has an eight kilometre radius, the Southern Focus Area.

The two diamonds larger than the 0.850 mm sieve size were classified by the SRC as being a 0.022 carat off-white, transparent, distorted crystal and a 0.014 carat white/colourless, transparent tetrahexahedron.

As reported on July 19, 2010, CH-20 was discovered by drilling an inclined hole across a magnetic low anomaly, kimberlite was intersected from a depth of 23 to 44 metres. The kimberlite is described as being olivine-rich, black macrocrystic kimberlite.

The SRC is an independent laboratory that is accredited by the Standards Council of Canada to the ISO/IEC Guide 25 standard for diamond recovery by caustic fusion. The kimberlite samples were collected, sealed in secure containers and shipped to the SRC under strict chain of custody protocols supervised by senior Peregrine personnel.

Chidliak is a joint venture between Peregrine (49%) and BHP Billiton (51%).

Mr. Peter Holmes, P. Geo., Peregrine's Vice President, Exploration, is a Qualified Person under NI 43-101 and is responsible for the design and conduct of the programmes carried out by the Company on the Chidliak project. Mr. Holmes has reviewed this release and approves of its contents.

Source:

Peregrine Diamonds Ltd.

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