Peregrine Commences 2007 Diamond Exploration Program and Provides Update on DO-27 Bulk Sampling

March 5, 2007 PDF version
Vancouver, British Columbia - Monday, March 5, 2007 - Peregrine Diamonds Ltd. (“Peregrine”) (TSX:PGD) today announced the commencement of its 2007 Canadian diamond exploration program. This program, budgeted at $4.2 million, is in addition to Peregrine’s bulk sampling activities at the plus nine hectare DO-27 kimberlite pipe, WO Diamond Project, NT, Canada (see December 14, 2006 press release) and will focus on three key areas: Northwest Territories (NT), Nunavut (NU), and Manitoba (MB).

UPDATE ON 2007 DO-27 BULK SAMPLE

Approximately 1,000 tonnes of kimberlite has been extracted as part of the 2007 bulk sample program currently underway at DO-27. This compares to 151 tonnes that was extracted from the 2005 bulk sample and 549 tonnes extracted from the 2006 bulk sample. Previous bulk samples have shown that the most productive months are March and April.

To date, a total of 13 large diameter drill (LDD) holes, ranging from 20 to 28 inches in diameter, have been completed to depths of up to 275 metres. Three LDD rigs are currently drilling on ice in addition to two core rigs that are drilling delineation, pilot and metallurgical holes.

Further updates on the progress of the 2007 DO-27 bulk sample will be provided on a regular basis.

2007 DIAMOND EXPLORATION PROGRAM

NORTHWEST TERRITORIES

Lac de Gras West Project, NT
  • Ground-based geophysical surveying began March 2, 2007 and include the collection of Horizontal Loop EM (HLEM), gravity and magnetic data over at least 15 grids.
  • A drilling program of at least seven drill holes, totalling approximately 1,000 metres and targeting anomalies identified through previous work, is scheduled to begin during the 2nd quarter, 2007.
  • Additional drill holes may be added to the program, depending on the results of the ground-based geophysical surveys.
WO/Lac de Gras East Project, NT
  • Ground-based geophysical surveying, consisting of magnetics, gravity and HLEM, will begin on these properties once the surveying at Lac de Gras West is complete.
  • 14 high priority targets have been identified for ground-based geophysical follow-up and at least 10 drill holes, totalling approximately 1,500 metres, are planned for the 2nd quarter, 2007.
Pellatt Lake Project, NT
  • Heavy mineral sampling results have just recently been received and interpretation is in progress.
  • Initial results suggest sources other than the one known kimberlite may exist on the Pellatt Lake property.
  • Plans are being finalized, in discussion with joint venture partners, for an aggressive exploration program, the details of which will be released in the next few weeks.
Mackay Lake West Project, NT
  • Results from the 220 heavy mineral samples collected in 2006 are pending.
  • Once these results are received, an exploration program will be planned to follow-up on any positive data. The follow-up program will most likely involve additional heavy mineral sampling and ground-based magnetometer surveys to identify geophysical anomalies for possible drill testing.
NUNAVUT

Nanuq Project, NU

  • Ground-based magnetic surveys (25m line spacing) have outlined a large (~ 5 hectare) magnetic anomaly at the head of a well-defined mineral train on wholly owned Peregrine ground.
  • Additional ground-based geophysical surveying, including HLEM and gravity, will be conducted over the magnetic anomaly to better define it prior to drilling.
  • Three drill holes, totalling approximately 500 metres, are initially planned to test this large anomaly during the 3rd quarter, 2007.
  • Additional drill holes may be added to the program, pending the results of the ground-based geophysical surveys.
Mirage Bay Project, NU
  • Approximately 300 heavy mineral samples will be collected to better define the indicator mineral train and constrain up-ice indicator cutoff.
Chidliak Project, NU
  • Approximately 200 heavy mineral samples will be collected to better define the indica