VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 8, 2011) - Peregrine Diamonds Ltd. ("Peregrine" or "the Company") (TSX:PGD) is pleased to report the discovery of a third kimberlite, named Q3, by reverse circulation ("RC") drilling on the Company's 100 percent-owned, 437,000 hectare Qilaq project ("Qilaq" or "the Project") on Baffin Island, Nunavut, Canada. Qilaq is located on Hall Peninsula, northeast of Iqaluit, the capital of Nunavut. Additionally, one RC hole was drilled into the Q1 kimberlite which was discovered by prospecting in 2010. Kimberlite chip samples collected from Q1 and Q3 are being sent to the Saskatchewan Research Council for diamond analysis by caustic fusion.

Q3 KIMBERLITE

The Q3 kimberlite was discovered when a magnetic low anomaly with an estimated surface expression of 2.5 hectares, as determined by ground geophysics, was tested by the drilling of three angled RC holes, two of which ended in kimberlite. An exploration summary showing the Q3 discovery is available at www.pdiam.com/i/pdf/Qilaq765.pdf.

2011 EXPLORATION UPDATE

During June and July of this year, ground magnetic geophysical surveys were completed over 10 anomalies that were selected from the 3,700 line-kilometre airborne electromagnetic/magnetic survey which was completed in June. Additionally, 122 till samples have been collected to date and several metals prospects have been evaluated. Anomalies selected from the ground geophysical survey will be prioritized for evaluation in 2012 upon receipt of the till sampling results. The drilling at Qilaq has now been completed for the season, and the RC rig has been moved back to the adjacent Chidliak project to continue target drilling.

As reported on August 5, 2010, the diamondiferous Q1 and Q2 kimberlites were both discovered by prospecting. Q1 is located four kilometres north of Q2 and was described as a magnetic high anomaly with an estimated diameter of 150 metres. The initial diamond results from Q1 and Q2 were reported on October 6, 2010. A 62.7 kilogram sample from Q1 yielded 38 diamonds larger than the 0.106 mm sieve size including one diamond larger than the 0.600 mm sieve size. The RC hole drilled this year in the interpreted centre of Q1 resulted in the collection of a sample weighing approximately 200 kilograms. A 242 kilogram sample of surface material collected from Q2 in 2010 yielded 253 diamonds larger than the 0.106 mm sieve size, including three diamonds larger than the 0.600 mm sieve size.