Peregrine Provides Update on Chidliak Diamond Project

Peregrine Diamonds Ltd. (TSX: PGD.TO - News) ("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.

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 programme, 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 programmes, 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.
Contact:

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)
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www.pdiam.com