Peregrine Reports First Kimberlite Drill Intersection At CH-1 And The Discovery Of Two Additional Kimberlites At Chidliak, Baffin Island, Nunavut

July 16, 2009
Peregrine Diamonds Ltd. (“Peregrine” or “the Company”) is pleased to report the first drill results from the 9,800 square kilometre Chidliak property (“Chidliak” or “the Property”), Baffin Island, Nunavut, Canada. The southwestern corner of Chidliak is situated only 60 kilometres northeast of Iqaluit, the capital of Nunavut. Kimberlite was confirmed by drilling at CH-1 and an additional kimberlite, designated CH-4, was discovered by drilling. A fifth kimberlite, designated CH-5, was discovered when kimberlite cobbles and boulders were identified at surface while prospecting a priority 2 geophysical anomaly.

Drilling commenced at Chidliak on July 3, 2009. The drill data generated to July 12, 2009 is presented in the following table.

SUMMARY OF 2009 CHIDLIAK DRILLING COMPLETED TO JULY 12, 2009

Kimberlite,
Drill Hole #

Azimuth

Inclination
from
Horizontal

Overburden (m)

Kimberlite
Intercepts (m)

End of Hole (m)

CH-1, #1

38°

45°

5

56-111,
129-137, 152-208

245

CH-4, #1

132°

45°

7

11-82, 92-112

182

CH-4, #2

132°

60°

7

46-106, 117-157

180

Note: All intercepts below the overburden that are not kimberlite are granitic gneiss.

CH-1 KIMBERLITE
The first drill hole into CH-1 was collared southwest of the geophysical anomaly that represents the kimberlite and was drilled at an azimuth of 38 degrees and inclination of 45 degrees from horizontal across the southern portion of the anomaly. The geophysical anomaly has an estimated surface expression of two to three hectares as determined by ground geophysics. Kimberlite intervals of 55, 12 and 56 metres respectively, were intersected. The kimberlitic material is described as being magmatic with abundant medium- to coarse- grained olivine, coarse-grained garnet with kelyphitic rims and abundant mantle xenoliths. The kimberlite appears similar to the surface magmatic kimberlite from which a 2.28 tonne sample was collected in 2008. As announced on November 18, 2008, the sample returned a diamond content of 1.56 carats per tonne for diamonds larger than 0.85 mm including a 2.01 carat clear, colourless gem diamond.

Approximately 40 percent of the interpreted surface area of the CH-1 kimberlite, including the kimberlite outcrop discovered and sampled in 2008, is currently covered with snow. When the snow recedes, two additional drill holes are planned for CH-1. In 2008, the outcrop was free of snow on July 20. The holes will be collared near the kimberlite outcrop and one of these will be drilled at an azimuth that will allow for the testing of the northern portion of the geophysical anomaly. As announced on May 27, 2009, Peregrine plans to collect a mini-bulk sample of approximately 50 tonnes of kimberlite from the surface exposure at CH-1 in late July or August of this year.

CH-4 KIMBERLITE
The CH-4 kimberlite is situated 1.5 kilometres west of the CH-1 kimberlite. Two holes, drilled a