Feb 19, 2008
Peregrine Discovers Three Separate Areas with High Concentrations of Kimberlitic Indicator Minerals on Chidliak, Baffin Island

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Mr. Brooke Clements, President and Mr. Eric Friedland, Chief Executive Officer of Peregrine Diamonds Ltd. ("Peregrine" or "the Company") are pleased to report that the Company has discovered three separate areas with high concentrations of kimberlitic indicator minerals ("KIMs") on the Chidliak Property ("Chidliak"), Baffin Island, Canada. Chidliak is situated approximately 150 kilometres northeast of Iqaluit, capital of Nunavut. The high concentrations of KIMs and their abrasion characteristics suggest the presence of kimberlites. Many of these indicator minerals have geochemical compositions that imply their kimberlite source contains diamonds.

On February 1st, 2008, the Nunavut Mining Recorder approved Peregrine's application for 25 new prospecting permits that were peripheral to the existing Chidliak property, increasing its size from approximately 635,000 to 980,000 hectares.

A map showing the Chidliak property and Peregrine's complete 2.7 million hectare land position on Baffin Island is available at http://www.pdiam.com/i/maps/NA/BaffinProperties.jpg

Anomaly Areas
Peregrine collected a total of 970 till samples in 2006 and 2007, of which 286 samples, or 29 percent, contained kimberlitic indicator minerals. The full suite of KIMs have been recovered from Chidliak, including p-type pyrope garnet, eclogitic garnet, chrome diopside, picroilmenite, chromite and forsteritic olivine. Ten percent of the 2,284 p-type pyrope garnets that were analyzed by electron microprobe are classified as high-chrome, low-calcium G10 garnets. G10 garnets are commonly associated with diamond mines throughout the world.

An image showing the encouraging garnet mineral chemistry from Chidliak is available at http://www.pdiam.com/i/pdf/Chidliak_pyrope.pdf.

The three distinct and well-defined KIM anomaly areas on Chidliak are situated 20 to 30 kilometres apart and are referred to as the Southern Anomaly, the Northern Anomaly and the Eastern Anomaly.

The largest and most significant anomalous area, the Southern Anomaly, is approximately 11 by 9 km in size and 37 of the 38 samples collected within this area were anomalous with KIMs, with most of the samples being highly anomalous. One sample contained 246 pyrope garnets, 24 eclogitic garnets, 13 chrome diopsides, 89 picroilmenites and 244 olivines. Of these mineral grains, two pyrope garnets, two eclogitic garnets, ten picroilmenites and six olivines were over 1.00 mm in size. The 0.25-2.00 mm size fraction from heavy mineral concentrates is typically recovered from till samples being analyzed for KIMs. Mineral grains larger than 1.00 mm are not common and are often a strong indication of a proximal kimberlite source.

The Northern Anomaly is roughly 13 by 2 km in size and all seven samples collected within this area are anomalous in KIMs. One sample contained 54 pyrope garnets, 11 eclogitic garnets, 35 picroilmenites, 15 chromites, 20 olivines and three chrome diopsides, of which one grain was over 1.00 mm in size.

The Eastern Anomaly measures approximately 9 by 4 km in size. All 19 samples collected within this area were anomalous in KIMs and the most significantly anomalous sample contained 96 pyrope garnets, seven eclogitic garnets, 11 picroilmenites, one chromite and 397 olivines. One of the pyrope garnets, three of the ilmenites and three of the olivines were larger than 1.00 mm in size.

All of the samples collected from Chidliak were sent to Overburden Drilling Management ("ODM") in Nepean, Ontario for KIM and metamorphic or magmatic massive sulfide indicator mineral analyses. ODM is an internationally recognized laboratory specializing in identifying kimberlite indicator minerals and indicator minerals associated with uranium and other metallic ore deposits.

2008 Work
Peregrine is highly encouraged by the identification of these indicator mineral anomalies and believe they are a strong indication of the presence of a new kimberlite district with excellent diamond potential on this part of Baffin Island. Planning is currently underway for the 2008 exploration field program with the primary goal being the discovery of diamondiferous kimberlite in one or more of the three anomalous areas this year.

Peregrine plans to establish an exploration camp on Chidliak this June and a helicopter-borne magnetic/electromagnetic survey with 75 m line spacing will commence shortly thereafter. The survey will be flown over the Southern, Northern and Eastern Anomaly areas first. Survey data will be interpreted in real time and high priority anomalies will be investigated immediately by detailed prospecting, till and geochemical sampling and limited drilling if results warrant and weather permits.

Alliance with BHP Billiton
The Chidliak property is owned 100% by Peregrine, subject to certain back-in rights held by BHP Billiton. After Peregrine has incurred a minimum of $3 million and up to $10 million of expenditures on the property, BHP Billiton has a one-time option to elect to acquire a 51% interest in the property by sole-funding five times the exploration expenditures that have been incurred ($15 million to $50 million). BHP Billiton has the right to earn an additional seven percent interest by sole-funding the complete costs of a bankable feasibility study. If this option is exercised, the resulting ownership interests in any potential mine would be BHP Billiton 58% and Peregrine 42%.

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 on Baffin Island.

For further information, please contact Brooke Clements, President, Eric Friedland, CEO, or Peregrine Diamonds Investor Relations, at 604-408-8880 or at investorrelations@pdiam.com.

Forward-Looking Statements: This document includes forward-looking statements. Forward-looking statements include, but are not limited to statements concerning Peregrine's projects and other statements that are not historical facts. When used in this document, the words such as "could," "commonly," "confident," "plan," "encouraging," "estimate," "expect," "anticipated," "intend," "imply," "likely," "may," "potential," "should," "scheduled," "significant," "suggest", and similar expressions are forward-looking statements. Although Peregrine Diamonds Ltd. believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risk and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements are disclosed in the corporation's periodic filings with Canadian regulators.