VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 2, 2012) - Peregrine Diamonds Ltd. ("Peregrine" or "the Company") (News - Market indicators) is pleased to report an independently verified tonnage estimate for the CH-6 kimberlite of up to 5.7 million tonnes of kimberlite to a depth of 375 metres below surface. The kimberlite pipe remains open at depth. A detailed technical report, prepared in accordance with National Instrument ("NI") 43-101, will incorporate this new tonnage estimate. CH-6 is located within the Southern Focus Area on the 100 percent-owned, 8,580 square kilometre Chidliak project ("Chidliak" or "the Project"), Baffin Island, Nunavut, Canada. 

New microdiamond results from the CH-6 kimberlite continue to confirm a coarse diamond size distribution. A cumulative 1,512.3 kilogram sample of drill core collected from CH-6 in 2011 yielded 4,867 diamonds larger than the 0.106 mm sieve size, including 166 commercial-size diamonds larger than the 0.850 mm sieve size which weigh a total of 6.77 carats. The Saskatchewan Research Council Geoanalytical Laboratories ("the SRC") classified the colours of the 166 commercial-size diamonds as follows: 42 percent white/colourless, 40 percent off-white, 14 percent yellow, 3 percent grey and 1 percent brown. The largest four diamonds were described by the SRC as a 0.60 carat off-white aggregate, a 0.43 carat yellow octahedron, a 0.34 carat off-white octahedron and a 0.32 carat white/colourless octahedron.

Mr. Brooke Clements, Peregrine's President, said, "Completion of an independently verified tonnage estimate for CH-6 of 5.7 million tonnes of kimberlite is an important step in advancing the Chidliak project. We are especially encouraged by the microdiamond results from CH-6 which continue to be some of the best ever seen in Canadian diamond exploration. The diamonds recovered to date from CH-6 show a predominance of white/colourless, off-white and yellow colours and a coarse diamond size distribution. Continued evaluation of CH-6, beginning with more core drilling in 2012 and the collection of a bulk sample by reverse circulation drilling in 2013, will confirm the grade of the pipe and is designed to recover a minimum 200 carat parcel of diamonds in order to begin formal diamond valuations."

CH-6 Tonnage Estimate

Geostrat Consulting Services Inc., a consulting firm specializing in kimberlite geological modeling and resource evaluation, verified the CH-6 tonnage estimate. Based on the current geological model, it is estimated that CH-6 hosts 5.7 million tonnes of kimberlite to a depth of 375 metres below surface. Of the 5.7 million tonnes, 3.6 million tonnes is considered reasonably defined with good drilling support. The remaining 2.1 million tonnes has been identified with limited drilling support and the confidence level of this tonnage will be increased with more drilling. Real potential exists to add significant tonnage at depths below 375 meters.

This tonnage estimate does not constitute a mineral resource and there is no assurance that a resource will be identified through further exploration work of CH-6.

The current geological model of CH-6 was defined from core drilling completed between 2009 and 2011. To date, 12 vertical and 12 inclined drill holes have been completed for a total of 4,701 metres. The geological model was prepared to the base of current drilling at a depth of 325 metres, with an additional projection to 50 metres below the base of drilling, at 375 metres depth. The tonnage estimate was determined using kimberlite volumes from the geologic model and specific gravity data for each geologic unit. The average specific gravity for 323 separate measurements was 2.58 g/cm³.

A detailed technical report prepared in accordance with NI 43-101 incorporating this new tonnage estimate will be filed on SEDAR within 45 days.

New Microdiamond Results

The following table summarizes caustic fusion diamond results from the CH-6 kimberlite. The analyses were performed at the SRC.

The CH-6 kimberlite is a steep-sided, near-vertical, southwest plunging kimberlite pipe with a kidney-shaped surface expression of approximately one hectare. The current geological interpretation of CH-6, based on detailed core logging and three dimensional modeling, suggests that there are four main kimberlite units. Differences between the units are subtle with few clear geologic contacts and all units contain a variety of mantle xenoliths. The four main units are as follows: 

• KIM-A: a dominantly pyroclastic textured kimberlite found in the upper 120 metres of the pipe. It has carbonate xenoliths with fewer gneissic xenoliths.

• KIM-B: a dominantly coherent textured kimberlite that is the most volumetrically significant unit at CH-6. It has gneissic xenoliths with fewer carbonate xenoliths.

• KIM-C: a coherent kimberlite that is found in the lower two-thirds of the pipe, marginal to KIM-B. This unit lacks carbonate xenoliths.

• KIM-D: a complex textured kimberlite that is found in the lower two-thirds of the pipe, marginal to KIM-C with many features similar to KIM-A, including the presence of carbonate xenoliths.

In addition to these four main units, the upper 40 metres of the pipe is capped by a weathered kimberlite horizon. There are volumetrically insignificant, minor kimberlite units that need further analysis in order to be grouped with the four main units. Diamond results reported today are from three of four main units, KIM-A (holes 15 and 16), KIM-B (holes 16, 17, 21, and 23) and KIM-D (hole 23) as well as some minor units (holes 15 and 16). The KIM-C unit was not sampled during the 2011 drilling.

As announced on December 6, 2010, a 14.11 tonne mini-bulk sample from CH-6 returned 40.04 carats of commercial-sized diamonds larger than the 0.85 mm sieve size for an average grade of 2.84 carats per tonne ("cpt"). The sub-samples, which were processed separately and ranged in size from 1.03 to 7.56 tonnes, returned diamond grades of 6.81, 3.49, 2.82 and 2.03 cpt. The sub-sample with the highest grade was collected from the upper portion of the southern half of the pipe, an area not tested in the 2011 drilling. Details of the 2011 core drilling were reported on September 12, 2011.

Images and additional information about the CH-6 pipe, including complete diamond results to date, are available on Peregrine's web-site at www.pdiam.com/i/pdf/Chidliak917.pdf.

Future Work on CH-6

The collection of a bulk sample from CH-6 by reverse circulation drilling, designed to collect at least 200 carats of diamonds for diamond valuation, is scheduled for early 2013. Peregrine plans to drill up to 8 core holes into CH-6 this year to acquire more diamonds and to establish pilot holes for the 2013 bulk sample, to acquire preliminary geotechnical information and to better define the pipe's overall size and internal geology.

Mr. Alan O'Connor, Professional Geologist, Peregrine's Chidliak Project Manager, 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 Chidliak. 

Mr. David Farrow, B.Sc. (Hons), Pr.Sci.Nat., P. Geo., of Geostrat Consulting Services Inc., an independent Qualified Person and a consultant to Peregrine, reviewed and verified the geological model and tonnage estimate. Mr. Farrow is a Geologist and Geostatistician who has over 30 years worldwide experience in the minerals industry, with most of that experience in diamond deposit evaluation and resource estimation. From 1986 to 2006 Mr. Farrow worked for De Beers and related companies with his last position at De Beers Group Services being Group Evaluation Manager. 

Mr. O'Connor and Mr. Farrow have reviewed this release and approve of its content.

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.