VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 11, 2012) - Peregrine Diamonds Ltd. ("Peregrine" or "the Company") (News - Market indicators) is pleased to announce that field operations have commenced at its 100 percent-owned, 8,580 square kilometre Chidliak project ("Chidliak" or "the Project"), located 120 kilometres from Iqaluit, Baffin Island, Nunavut, Canada. The 2012 exploration program, with an estimated budget of $10 million, will consist primarily of advanced preparations for the 2013 bulk sampling program and significant exploration this summer to discover more diamondiferous kimberlites. Preliminary details of the 2012 program were first announced on January 23, 2012.

REVERSE CIRCULATION ("RC") BULK SAMPLING 

The Sunrise camp is now open at Chidliak and the crew is preparing for the overland mobilization of support equipment, including the Morooka MST3000VD, Caterpillar Challenger 875C Tractor and Snow-Cat BR350, from Iqaluit. Once on site, this equipment will be used to test transportation routes between kimberlites and aircraft landing areas in preparation for the planned bulk sample collection by RC drilling next winter.

The amendments to Peregrine's existing land use permit and water license required for bulk sampling were received in March. The RC drill rig is undergoing final modifications by Cooper Drilling Ltd. and will be mobilized to Iqaluit by Sealift this summer. Bulk sample collection from key kimberlites is scheduled to commence in February, 2013, and, subject to results and renewal of required permits and licences, will continue in 2014. Bulk samples will be transported to and processed at the Saskatchewan Research Council Geoanalytical Laboratories in Saskatoon with initial results anticipated in Q3, 2013.

PRE-BULK SAMPLE CORE DRILLING OF KEY KIMBERLITES

Peregrine plans to drill up to eight core holes into each of the CH-6 and CH-7 kimberlites this year to acquire more diamonds and to establish pilot holes for 2013 bulk sample RC holes, to acquire preliminary geotechnical information and to better define the overall size and internal geology of the pipes. It is anticipated that core drilling at CH-7 will allow disclosure of a tonnage estimate later this year. A tonnage estimate of 5.7 million tonnes to a depth of 375 metres for CH-6 was announced on April 2, 2012. This tonnage estimate is currently not a resource and there is no assurance that a resource will be identified through further exploration work of CH-6.

In addition, core drilling is planned for the CH-1 and CH-44 kimberlites to acquire more Diamond content information and to better define the pipes' overall size and internal geology in preparation for RC bulk sampling beginning in 2013.

CONTINUED KIMBERLITE EXPLORATION

This year the Company will also conduct focussed exploration to discover additional diamondiferous kimberlites that have economic potential. 

Planned 2012 work includes the following:

• Efficient, helicopter-portable RC drill testing of high-priority geophysical targets identified from airborne and ground geophysics will commence in the summer, principally in the Southern Focus Area.
• Approximately 1,500 line-kilometres of ground geophysical surveys over 40 anomalies selected from previous airborne surveys are planned, and the Chidliak winter ground survey program has commenced. Additional ground geophysical surveys are planned for the summer.
• Indicator mineral sampling, mapping and ground prospecting will commence in the summer. Prospecting has resulted in the discovery of 25 of the 59 kimberlites discovered at Chidliak to date, as many kimberlites on the Project are exposed at surface.
• Under consideration is a 9,000 line-kilometre RESOLVE helicopter-borne magnetic-electromagnetic geophysical survey, to be completed in the summer, which will focus over priority areas of the Project, including the Southern Focus Area, that have been surveyed using only the DIGHEM system. Peregrine believes the additional electromagnetic ("EM") resolution provided by the RESOLVE system will assist in the discovery of non-magnetic kimberlites such as the four hectare CH-31 and five hectare CH-33 pipes.

Mr. Alan O'Connor, Professional Geologist, Peregrine's Chidliak Project Manager, is a Qualified Person under National Instrument 43-101 and is responsible for the design and conduct of the programs carried out by the Company at Chidliak. Mr. O'Connor has reviewed this release and approves of its contents.

Forward-Looking Statements: This news release contains forward-looking statements. All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements relating to the proposed exploration program, funding availability, anticipated exploration results, resource estimates, and future exploration and operating plans are forward-looking statements. These forward-looking statements reflect the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements and, even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things, uncertainties relating to the availability and cost of funds, timing and content of work programs, results of exploration activities, interpretation of drilling results and other geological data, world Diamond markets, future Diamond prices, reliability of mineral property titles, changes to regulations affecting the Company's activities, delays in obtaining or failure to obtain required project approvals, operational and infrastructure risks and other risks involved in the Diamond exploration business. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to their inherent uncertainty.