August 23, 2010

Peregrine Discovers 6 More Kimberlites at Chidliak Bringing Total Discovered to Date to 38

Peregrine Diamonds Ltd. ("Peregrine" or "the Company") (TSX:PGD) is pleased to report the recent discovery of six new kimberlites at the Chidliak project ("Chidliak" or "the Project") on Baffin Island, Nunavut, Canada. The new discoveries bring the total number of kimberlites discovered to date on the Project to 38. Three of the new kimberlites, CH-33, CH-35 and CH-36, were discovered at surface by prospecting, and the other three, CH-34, CH-37 and CH-38, were discovered by core drilling. The 2010 summer exploration programme continues with the drilling of geophysical anomalies by two core rigs and an RC rig. Drilling is expected to continue until early September.

SIX NEW KIMBERLITE DISCOVERIES
The discovery of the six new kimberlites at Chidliak currently brings the total discovered in 2010 to 22. Of the 38 kimberlites discovered so far at Chidliak, 21 have been discovered by prospecting and 17 by drilling. Samples from new kimberlite discoveries are being sent to the Saskatchewan Research Council ("the SRC") for diamond analysis by caustic fusion and results will be reported as they become available.

An exploration summary showing the new kimberlite discoveries is available at http://www.pdiam.com/i/pdf/chidliak838.pdf.

Kimberlites Discovered by Prospecting (CH-33, CH-35 and CH-36)
The CH-33 kimberlite was discovered when abundant kimberlite boulders and cobbles were discovered associated with a magnetic low anomaly with an estimated surface expression of at least two hectares as determined by airborne geophysics. The anomaly representing the kimberlite is partially covered by a lake. Both magmatic and volcaniclastic kimberlite with limestone xenoliths are present on surface at CH-33.

The CH-35 and CH-36 kimberlites were discovered when abundant kimberlite cobbles and boulders were discovered associated with magnetic high anomalies. CH-35 and CH-36 are located, respectively, 500 and 1,000 metres south of a magnetic high anomaly which has an estimated surface expression of one hectare. This anomaly, number 320, is scheduled for drilling this month. CH-35 has an estimated surface expression of half a hectare as determined by airborne geophysics, and it is represented by an area of magmatic kimberlite outcrop measuring two metres by three metres. The geophysical anomaly representing CH-36 is approximately one hectare in size and the majority of it lies under a lake.

Kimberlites Discovered by Drilling (CH-34, CH-37 and CH-38)
The CH-34, CH-37, and CH-38 kimberlites were discovered by drilling magnetic high geophysical anomalies with estimated surface expressions of 0.5 to one hectare as determined by ground geophysics. At CH-34 and CH-37, two inclined holes were drilled across the kimberlite from the same setup. At CH-34, both magmatic kimberlite and kimberlite breccia were encountered. The CH-37 kimberlite consists of macrocrystic magmatic kimberlite. At CH-38, two inclined holes were drilled towards each other from opposite sides of the kimberlite and kimberlite breccia with limestone xenoliths was discovered.

Drill hole data from the CH-34, CH-37 and CH-38 kimberlites are presented in the table below.

Kimberlite, Drill Hole #*	Azimuth	Inclination from Horizontal	Overburden (m)	Kimberlite Intercepts (m)	End of Hole (m)
From	To	Intercept
CH-34, #1	131°	-50°	6	27	117	90	144
CH-34, #2	131°	-60°	4.5	36	51	15	168
60	82	22
92.5	149	57
CH-37, #1	073°	-45°	18.5	43	108.2	65.2	165
CH-37, #2	073°	-60°	18.4	61	68	7	202
84	171.5	87.5
CH-38, #1	290°	-45°	9	9	106.6	97.6	147
CH-38, #2	110°	-45°	15	15	118	103	138

*Two holes drilled from same setup at CH-34 and CH-37. At CH-38, holes drilled in opposite directions 102 m apart. Note: All intercepts below overburden that are not kimberlite are gneiss.

As announced on November 24, 2008, BHP Billiton has exercised its earn-in rights for Chidliak. Under the terms of the earn-in agreement, BHP Billiton must incur a total of $22.3 million in exploration expenditures in order to earn a 51 percent interest in Chidliak. BHP Billiton sole-funded a $9.2 million exploration programme in 2009. The approved budget for the 2010 Chidliak exploration programme is $15.3 million.