Update On DO-27, WO Diamond Project, NWT, Canada

April 6, 2006
April 6, 2006, Vancouver, B.C. - Peregrine Diamonds Ltd. (“Peregrine”) (TSX-V: PGD) is pleased to provide a mid-winter/spring 2006 program update on exploration activity at the DO-27 kimberlite, WO Diamond Project, N.W.T., Canada.

RC DRILLING BULK SAMPLING

Peregrine contracted Encore Coring & Drilling Inc., Calgary, AB, in September, 2005 to provide two reverse circulation (RC) drill rigs, capable of drilling up to 24 inch diameter holes, for the winter/spring 2006 and 2007 bulk sampling programs at DO-27. The purpose of this two year, Advanced Exploration/Evaluation Program, is to extract sufficient carats from DO-27, estimated at 1000 to 3000 carats by Howard Coopersmith, P.Geo., Peregrine’s independent technical advisor and author of the 43-101 report on DO-27 dated December 6th, 2005, to justify initiating a comprehensive pre-feasibility study.

Despite various delays and drilling challenges more specifically described below, seven large diameter holes totaling 1352 metres have been completed to date at DO-27 this winter with the deepest hole (L-06-02) penetrating to a depth of 402 metres and ending in kimberlite. The deepest large diameter hole drilled prior to L-06-02 was RC-1 (2005) which reached a depth of 209 metres. The interval below this depth had not previously been sampled by large diameter drilling. Hole L-06-02 was drilled 15 meters SW of a previous NQ (47mm) core hole, (DDH-05-02), which reached a total depth of 460 meters last year, also ending in kimberlite. Micro-diamond results from DDH-05-02 suggest consistent diamond contents with depth at DO-27. (See press release dated January 25, 2006).

As of today, approximately 280 tonnes of kimberlite has been extracted during the 2006 program for a total of over 430 tonnes of kimberlite extracted from DO-27 to date by Peregrine through large diameter RC drilling. The majority of the samples collected to date have already been shipped to the Ekati(tm) Diamond Mine to await final macro-diamond processing. Peregrine remains confident that it will be able to extract the 1000 to 3000 carats as scheduled during the Advanced Exploration/Evaluation Program.

The current ice thickness of the lake at DO-27 is 8-9 feet, and Peregrine is hopeful that RC drilling will continue on ice until at least the end of April, which should result in a significant addition to the kimberlite tonnage recovered. Also, RC drilling is anticipated to continue on the NE Lobe of DO-27 this summer (see below).

The opening of the main Tibbitt to Contwoyto ice road was delayed this year and the road never reached full load capacity, having opened for a period of only 42 days compared with 70 days in 2005. As a result, most of the RC drilling equipment had to be broken down into much smaller and lighter loads than normally required for transportation, causing additional re-assembly times and other delays which postponed the commencement of this year’s bulk sampling program.

The two rigs began setting casing on February 9, 2006 and March 10, 2006, respectively, with the objective of collecting a significantly larger bulk sample to that collected during the winter of 2005. Both rigs initially commenced setting 28 inch diameter casing in advance of drilling 24 inch diameter holes. The inter-bedded muds and sands of the overlying lake bottom sediments and the plasticine-like qualities of the upper parts of the kimberlite, made setting the 28 inch diameter casing time consuming and stressful on the mechanical components of the rigs, leading to various mechanical failures and an unacceptable rate of advance.

In addition, the setting of 28 inch casing resulted in an unacceptable rate of ice degradation immediately surrounding the drill holes, resulting in unsafe drilling conditions. Both rigs, therefore, have switched to 16 inch diameter casing and 13.75 inch diameter drilling, resulting in significantly improved production. The difference in tonnes of kimberlite collected per metre of drilling in 24 inch diameter versus 13.75 inch diameter is 0.61 tonnes versus 0.20 tonnes (assuming an specific gravity of 2.1), a 67% reduction.

CORE DRILLING

As of today, a total of nine core holes totaling 2119 meters have been drilled into the DO-27 kimberlite this year. These holes range in depth from 106 metres, (DDH-06-13), to 309 metres, (DDH-06-20). All nine holes bottomed in kimberlite. Core drilling is continuing and is anticipated to continue on ice until June after which core drilling should continue on land based targets.

The diamond drilling suggests that the kimberlite contacts with the su