VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 8, 2011) - Peregrine Diamonds Ltd. ("Peregrine" or "the Company") (News - Market indicators) is pleased to report the discovery of a third kimberlite, named Q3, by reverse circulation ("RC") drilling on the Company's 100 percent-owned, 437,000 hectare Qilaq project ("Qilaq" or "the Project") on Baffin Island, Nunavut, Canada. Qilaq is located on Hall Peninsula, northeast of Iqaluit, the capital of Nunavut. Additionally, one RC hole was drilled into the Q1 kimberlite which was discovered by prospecting in 2010. Kimberlite chip samples collected from Q1 and Q3 are being sent to the Saskatchewan Research Council for Diamond analysis by caustic fusion.

Q3 KIMBERLITE

The Q3 kimberlite was discovered when a magnetic low anomaly with an estimated surface expression of 2.5 hectares, as determined by ground geophysics, was tested by the drilling of three angled RC holes, two of which ended in kimberlite. An exploration summary showing the Q3 discovery is available at www.pdiam.com/i/pdf/Qilaq765.pdf.

2011 EXPLORATION UPDATE

During June and July of this year, ground magnetic geophysical surveys were completed over 10 anomalies that were selected from the 3,700 line-kilometre airborne electromagnetic/magnetic survey which was completed in June. Additionally, 122 till samples have been collected to date and several metals prospects have been evaluated. Anomalies selected from the ground geophysical survey will be prioritized for evaluation in 2012 upon receipt of the till sampling results. The drilling at Qilaq has now been completed for the season, and the RC rig has been moved back to the adjacent Chidliak project to continue target drilling.

As reported on August 5, 2010, the diamondiferous Q1 and Q2 kimberlites were both discovered by prospecting. Q1 is located four kilometres north of Q2 and was described as a magnetic high anomaly with an estimated diameter of 150 metres. The initial Diamond results from Q1 and Q2 were reported on October 6, 2010. A 62.7 kilogram sample from Q1 yielded 38 diamonds larger than the 0.106 mm sieve size including one Diamond larger than the 0.600 mm sieve size. The RC hole drilled this year in the interpreted centre of Q1 resulted in the collection of a sample weighing approximately 200 kilograms. A 242 kilogram sample of surface material collected from Q2 in 2010 yielded 253 diamonds larger than the 0.106 mm sieve size, including three diamonds larger than the 0.600 mm sieve size.

Mr. Peter Holmes, P. Geo., Peregrine's Vice President, Exploration, is a Qualified Person under NI 43-101 and is responsible for the design and conduct of the programs carried out by the Company at Qilaq. Mr. Holmes 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.