First Drill Core Diamond Results From CH-1 Confirm Coarse Diamond Size Distribution Observed In 2008 Surface Samples

October 21, 2009
Peregrine Diamonds Ltd. (“Peregrine” or “the Company”) is pleased to report the first caustic fusion diamond results from drill core collected from the CH-1 kimberlite on the 9,800 square kilometre Chidliak project (“Chidliak”), Baffin Island, Nunavut, Canada. A 178.8 kilogram sample of drill core collected from a drill hole intersecting the northern portion of CH-1 (CH-1D) yielded 322 diamonds larger than the 0.075 mm sieve size, including five diamonds larger than the 0.600 mm sieve size.

The following table summarizes caustic fusion microdiamond results for the drill core sample acquired from CH-1D during the 2009 programme and samples collected from surface material at CH-1 in 2008. The analyses were performed at the Saskatchewan Research Council Geoanalytical Laboratories (“the SRC”).

SUMMARY OF CAUSTIC FUSION MICRODIAMOND RESULTS FOR SAMPLES FROM THE CH-1 KIMBERLITE

Kimberlite
Phase

Sample
Weight
(kg)

Numbers of Diamonds According to Sieve Size Fraction (mm)

Total
Diamonds

Carats
(+0.85mm)

Carats
Per Tonne
(+0.85 mm) *

+0.075-
0.106

+0.106-
0.150

+0.150-
0.212

+0.212-
0.300

+0.300-
0.425

+0.425-
0.600

+0.600-
0.850

+0.850-
1.180

+1.180-
1.700

+1.700-
2.360

CH-1D

178.8 91 90 51 47 25 13 4 0 1 0 322 .03 0.17

CH-1A**

100.0

9 11 9 9 2 2 2 0 0 0 44 - -

CH-1B**

94.9 34 37 28 19 13 5 4 2 2 2 146 0.157 1.67

CH-1C**

94.0 51 32 33 27 11 15 8 5 2 0 184 0.101 1.07
*The diamond content of the samples as determined by caustic dissolution may not be representative o