VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 11/21/11 -- Peregrine Diamonds Ltd. (TSX:PGD) ("Peregrine" or "the Company") is pleased to report microdiamond results that confirm coarse diamond size distributions in the CH-44 and CH-45 kimberlites on the 8,580 square kilometre Chidliak project ("Chidliak" or "the Project"), Baffin Island, Nunavut, Canada.

A 535.1 kilogram sample collected by core drilling from CH-44 in 2011 yielded 766 diamonds larger than the 0.106 mm sieve size, including 13 commercial-size diamonds larger than the 0.850 mm sieve size which weigh a total of 0.197 carats. A 374.8 kilogram sample of drill core collected from CH-45 in 2011 yielded 170 diamonds larger than the 0.106 mm sieve size, including two commercial-size diamonds weighing 0.268 carats. The diamonds in the CH-44 and CH-45 samples display a favourable colour profile, with 94 and 83 percent, respectively, of diamonds larger than the 0.600 mm sieve size being classified as white/colourless, off-white or yellow. Diamond results for three more kimberlites, CH-6, CH-7 and CH-31 and additional results from CH-59 are expected during the fourth quarter of 2011 and the first quarter of 2012.

Mr. Eric Friedland, CEO, commented on today's news, "These new results confirm the economic potential of CH-44 and CH-45, located just two kilometres apart in the Southern Focus Area.

We are especially encouraged by the colour profile of the diamonds, with 40 percent of the larger CH-44 diamonds and 50 percent of the larger CH-45 diamonds being classified as white/colourless. CH-44 and CH-45 now join CH-6 and CH-7 as part of the upcoming Chidliak bulk sampling program scheduled to commence in February, 2012.

The objectives of the bulk sampling program will be to establish diamond grades and initial diamond valuations for key kimberlites, an important step in confirming economic viability of what could become Baffin Island's first diamond mine."

The three largest diamonds in the CH-44 sample were described by the SRC as a 0.05 carat off-white octahedron, a 0.03 carat white/colourless octahedron, and a 0.04 carat off-white fragment. The two largest diamonds in the CH-45 volcaniclastic kimberlite sample were a 0.06 carat white/colourless octahedron and a 0.21 carat gray cubic crystal.

The CH-44 and CH-45 kimberlites were discovered in 2010 and are located in "the Southern Focus Area", an area with an eight kilometre radius that hosts six of the seven kimberlites with economic potential identified to date at Chidliak: CH-1, CH-6, CH-7, CH-31, CH-44 and CH-45.

The discovery of the CH-44 kimberlite by reverse circulation ("RC") drilling was announced on September 16, 2010. CH-44 is estimated to be 0.4 hectares in size and is described as an olivine macrocrystic kimberlite with abundant fresh kimberlite indicator minerals including garnet, chrome-diopside and ilmenite.

The discovery of the CH-45 kimberlite by RC drilling was announced on September 16, 2010. CH-45 is estimated to be 0.3 hectares in size and is interpreted to consist of at least two phases of kimberlite. One phase is a massive coherent kimberlite with coarse olivine macrocrysts and fresh garnets with a magnetic high geophysical signature. The other phase of kimberlite is interpreted as being volcaniclastic in origin and has a neutral magnetic geophysical signature.

Chidliak is a joint venture between Peregrine (49%) and BHP Billiton (51%). Peregrine is the operator of the exploration programs at Chidliak.

regards,

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