Peregrine Diamonds Ltd.: Discovers Six New Kimberlites at Chidliak

Vancouver, British Columbia -- (Marketwire - Aug. 4, 2010) - Peregrine Diamonds Ltd. ("Peregrine" or "the Company") (TSX: PGD) is pleased to report the discovery of six new kimberlites at the Chidliak project ("Chidliak" or "the Project") on Baffin Island, Nunavut, Canada. Three of the kimberlites, CH-29, CH-30 and CH-32, were discovered by drilling, and the other three, CH-27, CH-28 and CH-31 were discovered at surface by prospecting. The summer exploration programme continues with geophysical anomalies being prioritized for drilling by prospecting and ground geophysics.


SIX NEW KIMBERLITE DISCOVERIES

The discovery of six new kimberlites at Chidliak brings the total discovered to date to 32, with 16 of those being discovered thus far in 2010. Of the 32 kimberlites, 18 have been discovered by prospecting, and 14 by drilling. Samples from new kimberlite discoveries are being sent to the Saskatchewan Research Council ("the SRC") for diamond analysis by caustic fusion and results will be reported as they become available.


Kimberlites Discovered by Drilling (CH-29, CH-30 and CH-32)

The CH-29, CH-30 and CH-32 kimberlites were discovered by drilling magnetic geophysical anomalies with estimated surface expressions of 0.5 to 1.0 hectare. At each of the discoveries, two inclined holes were drilled across the kimberlite from the same setup. CH-29 is represented by a magnetic low anomaly, and CH-30 and CH-32 are associated with magnetic high anomalies. At CH-32, the first hole was drilled at an inclination of 45° and intersected magmatic kimberlite only. In the second hole at CH-32, drilled at an inclination of 65°, both magmatic and volcaniclastic kimberlite were intersected.

An exploration summary showing the new kimberlite discoveries is available at
http://www.pdiam.com/i/pdf/chidliak261.pdf.

Drill hole data from the CH-29, CH-30 and CH-32 kimberlites are presented in the table below.


DRILL HOLE DATA FROM THE CH-29, CH-30 and CH-32 KIMBERLITES

Kimberlite, Drill Hole #* Azimuth Inclination from Horizontal Overburden (m) Kimberlite Intercepts (m) End of Hole (m)
From To Intercept
CH-29, #1 300° -50° 11 57 121 64** 139
CH-29, #2 300° -65° 12 100 157 57** 210

CH-30, #1 305° -45° 15 15 44 29** 80
CH-30, #2 305° -80° 21 51 120 69** 150
129 142 13**

CH-32, #1 288° -45° 4 18 79 61** 113
CH-32, #2 288° -65° 2 37 111 74** 333
122 311 189***
*All multiple holes at a kimberlite drilled from same setup
** Magmatic kimberlite
*** Dominantly volcaniclastic kimberlite
Note: All intercepts below the overburden that are not kimberlite are gneiss.


Kimberlites Discovered by Prospecting (CH-27, CH-28 and CH-31)

The CH-27 kimberlite was discovered when magmatic kimberlite boulders and cobbles were found on top of a linear magnetic low anomaly measuring approximately 350 m by 30 m as determined by ground geophysics.

At CH-28, kimberlite boulders and cobbles were discovered within a depression having a diameter of more than 100 metres that corresponds with a magnetic high anomaly. Kimberlite boulders over one metre in diameter are present. The observed kimberlite is dominantly volcaniclastic with abundant limestone and shale xenoliths.

The CH-31 kimberlite is located approximately four kilometres southeast of the CH-7 kimberlite. It was discovered when kimberlite boulders and cobbles were discovered within a subtle magnetic low anomaly with an estimated surface expression of approximately two hectares. At least two phases of kimberlite are present at CH-31.


EXPLORATION UPDATE

Over 100 geophysical anomalies have been prospected and over 500 line kilometres of ground geophysical surveys have been completed at Chidliak since early July, 2010. Nine new kimberlites have been discovered at surface during that period and the prospecting and ground geophysical data is being evaluated to prioritize targets for drilling. In addition to the two core drill rigs that are currently being used to test kimberlite anomalies at Chidliak, a helicopter-portable reverse circulation drill rig is scheduled to be operational this week. Peregrine anticipates that drilling at Chidliak will continue into early September.

As announced on November 24, 2008, BHP Billiton has exercised its earn-in rights for Chidliak. Under the terms of the earn-in agreement, BHP Billiton must incur a total of $22.3 million in exploration expenditures in order to earn a 51 percent interest in Chidliak. BHP Billiton sole-funded a $9.2 million exploration programme in 2009. The approved budget for the 2010 Chidliak exploration programme is $15.3 million.


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 Chidliak. 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, any changing budget priorities of BHP Billiton, 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.



For more information, please contact

Peregrine Diamonds Ltd.
Mr. Eric Friedland, CEO
604-408-8880
or
Peregrine Diamonds Ltd.
Mr. Brooke Clements, President
604-408-8880
or
Peregrine Diamonds Ltd.
Mr. Mike Westerlund, VP, Investor Relations and Corporate Communications
604-408-8880
or
Peregrine Diamonds Ltd.
Investor Relations
604-408-8880, 604-408-8881 (FAX)
investorrelations@pdiam.com
www.pdiam.com