Peregrine Diamonds Ltd. TSX: PGD

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 26, 2008) - Peregrine Diamonds Ltd. ("Peregrine") and Peregrine Metals Ltd. ("Metals") (TSX:PGD) announce that their respective Boards of Directors have mutually agreed to terminate discussions to effect a business combination between the two companies.

On June 3, 2008, Peregrine and Metals announced that they had entered into a letter of intent for the purpose of effecting a business combination whereby the two companies would merge to form a multi-commodity resource company. Both companies formed Special Committees of independent directors to study various structures for a merged company and negotiate a merger ratio. The Peregrine Special Committee cited recent developments at Peregrine's Chidliak property on Baffin Island, including the earn-in arrangement with BHP Billiton announced on November 24, 2008, as the primary reason to terminate the merger discussions.

Metals will continue to advance its promising South American exploration projects as a private entity.