VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 30, 2011) - Peregrine Diamonds Ltd. (TSX:PGD) ("Peregrine" or "the Company") is pleased to provide an update on the Chidliak diamond project ("Chidliak" or "the Project") located 120 kilometres from Iqaluit on Baffin Island, Nunavut, Canada. On November 29, 2011, Peregrine announced that it had been informed by BHP Billiton that BHP Billiton is reviewing its diamonds business, comprising their interests in the EKATI Diamond Mine and the Chidliak diamond exploration project in Canada.

Today, Peregrine met with a senior executive of BHP Billiton who provided the following commentary to Peregrine:

• BHP Billiton continues to view Chidliak as a highly promising diamond exploration project and has committed to their share of up to $1.9 million for the mobilization of materials and equipment that will be utilized for the 2012 Bulk Sample program. This commitment is not affected by BHP Billiton's strategic review of its diamonds business.

• BHP Billiton intends to participate in the Chidliak 2012 exploration program. This commitment is also not affected by the strategic review.

As operator of the Childliak Joint Venture, Peregrine has presented BHP Billiton with a preliminary 2012 Chidliak Joint Venture program and budget. The major objectives of the proposed program are the collection of bulk samples from kimberlites with economic potential and continued exploration to discover more kimberlites with economic potential. Peregrine and BHP Billiton expect to approve a 2012 Chidliak program and budget before year-end.

Peregrine holds a right of first refusal on any disposition by BHP Billiton of its 51 percent interest in Chidliak.

Rights Offering

On November 8, 2011, Peregrine announced a rights offering that is schedule to close on December 6, 2011. Peregrine senior officers Eric Friedland, CEO, Brooke Clements, President, and Greg Shenton, CFO, and the Peregrine Board of Directors will participate in the rights offering.

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

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