Peregrine Discovers Four New Kimberlites and Completes 11,000 Line-Kilometre Airborne Geophysical Survey at Chidliak

Peregrine Diamonds Ltd. (TSX: PGD) ("Peregrine" or "the Company") is pleased to report the discovery by drilling of four new kimberlites, CH-52 to CH-55, on the Chidliak project ("Chidliak"). Chidliak is located on southern Baffin Island approximately 100 kilometres northeast of Iqaluit, the capital of Nunavut, Canada. The company has discovered five kimberlites since April of this year, bringing to 55 the total number of kimberlites discovered at Chidliak since August, 2008. Seven of the 35 kimberlites tested for diamonds to date have characteristics consistent with economic diamond mining potential in Arctic settings. In addition to the new discoveries, core holes were drilled into the CH-17 and CH-28 kimberlites that were discovered in 2010 and an 11,000 line-kilometre heli-borne magnetic/electromagnetic geophysical survey was completed. Two core rigs and a reverse circulation ("RC") rig are currently drilling at Chidliak.

Drill core obtained this year from the CH-51, CH-53, CH-54, CH-55, CH-17 and CH-28 kimberlites and RC drill cuttings from the CH-52 kimberlite will be analyzed for diamonds by caustic fusion at the Saskatchewan Research Council Geoanalytical Laboratories. Results of the analyses are expected in the third quarter.

Mr. Brooke Clements, President of Peregrine, said, "We continue to discover kimberlites at a very fast pace at Chidliak, and we believe that many more will be found in this rapidly growing new Canadian diamond district. We are particularly pleased to have already identified seven kimberlites with economic diamond mining potential in Arctic settings and we are confident that we will add to this group with additional discoveries this season."

The CH-52 kimberlite is located approximately 200 metres east of Sunrise camp and has an estimated surface expression of one hectare based on the interpretation of ground geophysics. It was discovered by the drilling of one vertical RC hole that intersected 25 metres of overburden and 21 metres of gneiss before intersecting 19 metres of kimberlite. The hole was terminated in kimberlite at 65 metres. As is the plan with all kimberlites discovered by RC drilling, CH-52 will be evaluated by core drilling if the initial diamond results are favourable.

The CH-53 kimberlite was discovered by drilling one core hole at an inclination of -50 degrees into a magnetic high anomaly located approximately five kilometres northeast of CH-28. The hole intersected 8 metres of ice and water, followed by 40 metres of overburden and 32 metres of gneiss. Kimberlite was intersected from 80 to 170 metres, and the hole was terminated at 215 metres. Based on interpretation of the ground geophysical and drill data, CH-53 has an estimated surface expression of one hectare.

The CH-54 kimberlite is located approximately 11 kilometres northeast of Sunrise camp and is associated with a kimberlite indicator mineral train. One vertical core hole drilled into CH-54 intersected kimberlite breccia at a depth of 43 metres after passing through 25 metres of ice and water and 18 metres of overburden. Kimberlite with variable amounts of gneiss and country rock breccia was intersected from 43 to 114 metres, followed by country rock with minor kimberlite to 143 metres, and then kimberlite with approximately 15 percent country rock to a depth of 160 metres. The hole was terminated at 195 metres after passing through 35 metres of gneiss. CH-54 has an estimated surface expression of one hectare, based on the interpretation of ground geophysical data.

The CH-55 kimberlite is located approximately 16.5 kilometres south of the CH-17 and CH-51 kimberlites. One core hole inclined at -45 degrees intersected kimberlite breccia at 51 metres after passing through nine metres of overburden followed by 42 metres of gneiss. The hole was terminated at 183 metres after intersecting 108 metres of kimberlite, followed by 24 metres of gneiss. A second hole, inclined at -60 degrees is currently being drilled from the same setup. CH-55 has an estimated surface expression of one hectare, based on the interpretation of ground geophysical and drill data.

A heli-borne electromagnetic/magnetic geophysical survey totalling approximately 11,000 line-kilometres and flown at 100 metre line spacing has just been completed. The data is being analyzed and priority targets are being selected for prospecting, ground geophysics and drilling this year. As an example, the anomaly associated with the CH-55 kimberlite discovery was selected from this year's airborne geophysical survey data. The next new target to be drilled, anomaly 557, has a similar geophysical signature as CH-55 and is located 300 metres south of the kimberlite.

One core hole drilled at an inclination of -45 degrees into the CH-28 kimberlite intersected 180 metres of kimberlite from 11 to 191 metres and the hole was terminated in gneiss at a depth of 213 metres. This was the first hole drilled into CH-28, a kimberlite that was discovered by prospecting in 2010. CH-28 has an estimated surface expression of two hectares based on interpretation of drill and geophysical data. As announced on September 23, 2010, a 239 kilogram kimberlite sample collected at surface from CH-28 yielded 0.196 carats of commercial-size (+0.85 mm) diamonds.

CH-17 was discovered in 2010 by core drilling, but sufficient material for diamond testing was not recovered. During the 2011 winter program, one vertical core hole was drilled from lake ice into CH-17. Kimberlite was intersected over an interval of 118 metres from a depth of 47 to 165 metres underneath 41 metres of water and ice and six metres of overburden. The hole was terminated in gneiss at a depth of 195 metres. Based on interpretation of ground geophysical and drill data, CH-17 has an estimated surface expression of one hectare and is located approximately 200 metres north of CH-51.

In addition to the five new kimberlite discoveries this year, four targets have been tested without intersecting kimberlite, three by the RC rig and one by a core rig.

The core rigs are scheduled to drill two more new kimberlite targets prior to commencing drilling on the diamondiferous CH-31 and CH-33 kimberlites. The RC rig will continue testing new targets. As reported on October 29, 2010, the CH-31 kimberlite has an estimated surface expression of approximately five hectares and an 840 kilogram sample yielded 1.39 carats of commercial-size diamonds including a gem quality 1.15 carat stone. Up to seven core holes will be drilled at CH-31 in an effort to recover approximately five tonnes of kimberlite for an initial grade determination. Up to three core holes will be drilled into CH-33 in an effort to confirm its size and assess the diamond content of the different phases. Based on interpretation of ground geophysical data, CH-33 has an estimated surface expression of greater than seven hectares. Initial diamond results for CH-33 were reported on January 13, 2011.

A location map and photographs of the new kimberlite discoveries are available at: http://www.pdiam.com/i/pdf/Chidliak768.pdf

Chidliak is a joint venture between Peregrine (49%) and BHP Billiton (51%). Peregrine is the operator of the 2011 program.

Mr. Peter Holmes, P.Geo., Peregrine's Vice President, Exploration, is a Qualified Person under NI 43-101 and is responsible for the design and conduct of the programs carried out by the Company at Chidliak. Mr. Holmes has reviewed this release and approves of its contents.

Forward-Looking Statements: This news release contains forward-looking statements. All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements relating to the proposed exploration program, funding availability, anticipated exploration results, resource estimates, and future exploration and operating plans) are forward-looking statements. These forward-looking statements reflect the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements and, even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things, uncertainties relating to the availability and cost of funds, timing and content of work programs, results of exploration activities, interpretation of drilling results and other geological data, world diamond markets, future diamond prices, reliability of mineral property titles, changes to regulations affecting the Company's activities, delays in obtaining or failure to obtain required project approvals, any changing budget priorities of BHP Billiton, operational and infrastructure risks, and other risks involved in the diamond exploration business. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to their inherent uncertainty.

 Contacts: Peregrine Diamonds Ltd. Mr. Eric Friedland, CEO 604-408-8880  Peregrine Diamonds Ltd. Mr. Brooke Clements, President 604-408-8880  Peregrine Diamonds Ltd. Mr. Mike Westerlund, Vice President, Investor Relations and Corporate Communications 604-408-8880  Peregrine Diamonds Ltd. Investor Relations 604-408-8880 604-408-8881 (FAX) This email address is being protected from spambots. You need JavaScript enabled to view it. www.pdiam.com

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