Peregrine Discovers Eight New Kimberlites And Collects Mini-Bulk Samples From CH-6 And CH-7

July 19, 2010

Peregrine Diamonds Ltd. (“Peregrine” or “the Company”) (TSX:PGD) is pleased to report the discovery of eight new kimberlites at the Chidliak project (“Chidliak” or “the Project”) on Baffin Island, Nunavut, Canada. Six of the new kimberlites, CH-19, CH-21 and CH-23 through CH-26 were discovered at surface by prospecting, and the other two, CH-20 and CH-22, were discovered by drilling. In addition, mini-bulk samples of approximately 13 and 50 tonnes respectively have been collected from the CH-6 and CH-7 kimberlites.

The primary focus of the summer exploration programme at Chidliak is the discovery of new kimberlites. With the completion of the CH-6 mini-bulk sample, two core rigs are now focussed solely on the drilling of new kimberlite-type targets. A third drill rig, a helicopter-borne reverse circulation rig, is being mobilized to Chidliak this month to complement the core rigs in testing as many of the 442 kimberlite-type geophysical anomalies identified to date on the Project as possible. Prospecting and ground geophysical survey teams continue to evaluate and prioritize geophysical anomalies for this expanded drilling programme. Many of the anomalies being evaluated and six of the ten kimberlites that have been discovered thus far in 2010 were selected from a 20,500 line kilometre airborne geophysical survey completed last month, demonstrating that other areas of Chidliak with no previous geophysical coverage have the potential to host kimberlites.

Brooke Clements, President of Peregrine, stated “The 2010 Chidliak exploration programme is off to a great start with ten new kimberlite discoveries since May. These discoveries confirm the exploration potential that Chidliak offers and that we have a large field of kimberlites to evaluate. With the combination of technical and logistical knowledge we have gained on the property, and our increased exploration commitment this year, we are confident that our experienced and dedicated exploration team will make many more diamondiferous kimberlite discoveries in the near future. Our goal is to confirm that a number of the 2010 discoveries are candidates for economic potential in Arctic settings, to complement the three we have identified thus far, CH-1, CH-6 and CH-7.”

An exploration summary showing four of the eight new kimberlite discoveries and exploration progress at the CH-6 and CH-7 kimberlites is available here.

The discovery of eight new kimberlites at Chidliak, CH-19 through CH-26, brings the number of kimberlites discovered on the project to date to 26. With the discovery of CH-19, the southernmost kimberlite at Chidliak, this new diamond district now extends at least 60 kilometres in a north-south direction and 40 kilometres in an east-west direction. Samples from new kimberlite discoveries are being sent to the Saskatchewan Research Council (“the SRC”) for diamond analysis by caustic fusion and results will be reported as they become available.

Kimberlites Discovered by Prospecting (CH-19, CH-21, CH-23 through 26)
The CH-19 kimberlite is located approximately seven kilometres south of the nearest known kimberlites, CH-14 and CH-15. It was discovered when magmatic kimberlite boulders and cobbles were found at surface on top of a magnetic high geophysical anomaly with an estimated surface expression of 100 by 50 metres.

The CH-21 kimberlite was discovered when abundant magmatic kimberlite boulders and cobbles were found at surface along a linear magnetic high anomaly with associated circular anomalies. The linear trend along which the kimberlite was discovered is approximately 600 metres long. CH-21 is located approximately five kilometres north of CH-19.

The CH-23 through CH-26 kimberlites, discovered in the last few days, are situated near each other on the eastern side of the Project approximately 30 kilometres northeast of the CH-6 kimberlite. CH-25 is interpreted to be a kimberlite dyke, and the other three are interpreted to be pipes based on their geophysical signatures. Abundant magmatic kimberlite boulders and cobbles were found at these four occurrences.

Kimberlites Discovered by Drilling (CH-20, CH-22)
The CH-20 kimberlite was discovered by drilling an inclined hole across a magnetic anomaly with an approximate surface diameter of 50 metres. CH-20 is located approximately 100 metres north of the CH-6 kimberlite and 250 metres south of the CH-10 kimberlite, and, along with CH-10, is one of four magnetic anomalies referred to as the String of Pearls that are aligned along a 600 metre trend in a north-northwest direction from CH-6. The kimberlite at CH-20 is described as being olivine-rich black macrocrystic kimberlite similar to that present at CH-6 and CH-10. The String o