Press Releases

August 08, 2006

Peregrine Announces Stock Option Plan Amendment and Stock Option Grants and Repricing

Vancouver, British Columbia - Tuesday, August 8, 2006 - Peregrine Diamonds Ltd. ("Peregrine") announces that it has amended its Stock Option Plan (the "Plan") to increase the number of common shares issuable under the Plan by 540,000 common shares to a maximum of 9,820,868 common shares.

Peregrine has granted stock options under the amended Plan to new employees and consultants to purchase an aggregate of 540,000 common shares of the Company at an exercise price of $3.00 per share for a term of five years. One-third of these options vest on the date of grant and a further one-third will vest on each of the first and second anniversaries of the original grant date. These options are subject to regulatory approval, as well as regulatory and shareholder approvals of the Plan amendment.

Peregrine has also repriced an option to purchase 300,000 common shares held by Greg Shenton, Chief Financial Officer of Peregrine, from an exercise price of $5.00 per share to $3.00 per share, subject to regulatory approval and disinterested shareholder approval.

Peregrine is a well funded Canadian diamond exploration/development company that is managed by experienced geoscientists. The company is taking the plus 9 hectare DO-27 diamondiferous kimberlite into pre-feasibility, and is exploring for other diamondiferous kimberlites on its extensive land holdings in Canada. The company trades on the TSX-V Exchange under the symbol "PGD".

Peregrine Diamonds Ltd.

Eric Friedland, President and CEO
Alan Carter, COO

For further information, please contact Roberta Voyer, Corporate Administrator, at 604-408-8880.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of this release.