Peregrine Reports 2.08 Carats of +0.85 mm Diamonds from New 170 kg CH-6 Sample and Promising Coarse Diamond Size Distributions from CH-10 and CH-12 Kimberlites

November 12, 2009
Peregrine Diamonds Ltd. (“Peregrine” or “the Company”) is pleased to report outstanding new diamond results from the CH-6 kimberlite that support previous results from that kimberlite. In addition, promising coarse diamond size distributions were received from samples of the CH-10 and CH-12 kimberlites. The CH-6, CH-10 and CH-12 kimberlites are situated on the 9,800 square kilometre Chidliak project (“Chidliak”), Baffin Island, Nunavut, Canada. The southwestern corner of Chidliak is located only 60 kilometres from Iqaluit, Nunavut’s capital.

On September 21, 2009, the Company reported the discovery of 2.50 carats of +0.85 mm diamonds from a 398.8 kilogram sample of drill core collected from the CH-6 kimberlite. An additional 170.3 kg sample of drill core collected from a magmatic phase of CH-6 (“CH-6C”) has returned 2.08 carats of +0.85 mm diamonds. A total of 2,007 diamonds larger than the 0.075 mm sieve size, including 91 diamonds larger than the 0.600 mm sieve size, was recovered from the sample with the two largest diamonds being a 0.420 carat white, translucent aggregate and a 0.361 carat yellow, transparent distorted crystal.

A 111.4 kilogram sample of drill core collected from CH-10 yielded 152 diamonds larger than the 0.075 mm sieve size, including two diamonds larger than the 0.600 mm sieve size. A 251.7 kilogram sample of surface kimberlite collected from CH-12 yielded 270 diamonds larger than the 0.075 mm sieve size, including three diamonds larger than the 0.600 mm sieve size. The CH-9 and CH-11 kimberlites were also determined to be diamondiferous. A 216.8 kilogram surface sample of CH-9 yielded two diamonds, one larger than the 0.075 mm sieve and one larger than the +0.106 sieve size and a 210.0 kilogram surface sample from CH-11 yielded one +0.075 mm stone.

The following table summarizes all caustic fusion diamond results to date from the CH-6 kimberlite together with results from the CH-10 and CH-12 kimberlites. The analyses were performed at the Saskatchewan Research Council Geoanalytical Laboratories (“the SRC”).

SUMMARY OF DIAMOND RESULTS FOR SAMPLES FROM THE CH-6 AND CH-10 and CH-12 KIMBERLITES

Kimberlite
Sample

Sample
Weight
(kg)

Numbers of Diamonds According to Sieve Size Fraction (mm)

Total
Diamonds

Carats
+0.85
mm

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

+2.360
-3.350

+3.350
-4.750

CH-6A**

199.8

629

489

279

186

140

71

44

27