Peregrine Metals Drills 164 Metres of 1.15 Grams Per Tonne Gold at Quebrada de la Mina, A New Porphyry Gold-Copper Discovery at the Altar Project, Argentina

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 02/23/11 -- Peregrine Metals Ltd. (TSX: PGM) ('Peregrine Metals' or 'the Company') is pleased to report the results of the first two core holes, drilled 140 metres apart, into the Quebrada de la Mina ('QDM') porphyry gold-copper discovery located two kilometres northwest of the Company's large Altar porphyry copper-gold deposit ('Altar') in San Juan Province, Argentina. Intersections from these two holes include 164 metres averaging 1.150 g/t gold ('Au') and 141 metres averaging 0.699 g/t Au.

A summary of the assay results from these two drill holes, QDM-01 and QDM-02, is provided in the table below. The Company recently completed four core holes at QDM for a total of 1,005 metres. Assay results for holes QDM-03 and QDM-04 are pending and are expected to be received this quarter. A map showing the locations of the four holes drilled at QDM can be viewed at www.pmet.com/i/pdf/altar689.pdf.

SUMMARY OF QDM-01 and QDM-02 DRILL HOLES
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                              Intersection                  Grade
                              -------------       --------------------------
                                                                       Gold
                    In-                                                 Cut-
            Azim- clin-                                                 off
             uth ation  Total               Inter- Gold   Cop- Silver Grade
            (deg- (deg- Depth  From     To    val    Au   per      Ag    Au
Drill Hole  rees) rees)    (m)   (m)    (m)    (m) (g/t) Cu(%)   (g/t) (g/t)
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QDM-01       195   -50 309.00  9.00 212.00 203.00 0.545 0.036     1.0   0.1
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Including                      9.00 150.00 141.00 0.699 0.015     1.2   0.3
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QDM-02       210   -60 300.00 14.00 238.00 224.00 0.925 0.065     3.5   0.1
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including                     22.00 228.00 206.00 0.987 0.068     3.6   0.2
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& including                   38.00 202.00 164.00 1.150 0.074     3.8   0.3
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The QDM porphyry gold-copper target was the subject of a preliminary rock chip sampling programme in 2010. A total of 52 rock chip grab samples was collected from a 150 metre by 300 metre area of abundant porphyry outcrop. These samples averaged 0.7 g/t Au, with the highest value being 3.9 g/t Au. This outcrop area is coincident with the centre of an induced polarization ('IP') geophysical anomaly that measures 400 metres by 900 metres and remains open to the north and south. Drill holes QDM-01 and QDM-02 were situated to test the area of the anomalous rock chip sampling and the IP anomaly at depth.

The gold and copper mineralization intersected in holes QDM-01 and QDM-02 is hosted by dacite porphyry that is strongly fractured with intense sericitic, tourmaline and silica alteration. The host rocks are intensely oxidized within a leached capping at surface and to a vertical depth of 64 metres in the drill holes. Below the leached capping, mineralization occurs as intensely developed sulphides (estimated 3% to 8% by volume) in the form of disseminations and veinlets of pyrite, chalcocite, covellite and bornite. Significant gold values occur in both the oxidized zone and the underlying sulphide mineralization.

Mr. Jeff Toohey, Peregrine Metal's Vice President, Exploration, said, 'We are very pleased with the initial drilling results from Quebrada de la Mina. The distribution of gold grades in these holes is remarkably continuous and homogeneous, suggesting that QDM has potential to host a bulk-tonnage gold-copper deposit. Many areas of the three square kilometre alteration zone associated with the mineralized system have yet to be sampled at surface and the overall size potential of the QDM system currently remains undefined. The discovery of a gold-enriched porphyry system only two kilometres from our large Altar porphyry copper deposit, currently undergoing a preliminary economic assessment, could have very positive implications for the overall project economics.'

The excellent results to date at QDM have prompted the Company to extend the field season until at least the end of March to conduct further IP geophysical surveys and a comprehensive surface rock chip and talus fines sampling campaign of approximately 1,000 samples. In addition, the Company is currently excavating a five tonne sample of mineralized material from QDM for future metallurgical testwork.

All QDM drill core is sampled in continuous two metre intervals. One half of the core is submitted for assay and the other half is archived in the Company's secure storage facility in Mendoza, Argentina. Drill core samples are prepared and assayed by the project's primary laboratory, Acme Analytical Laboratories, at their facilities in Mendoza, Argentina and Santiago, Chile. Copper values are determined by multi-element ICP and atomic absorption methods. Gold values are determined by fire assay.

Peregrine Metals has a comprehensive and rigorous quality assurance/quality control ('QA/QC') programme in place that employs certified assay standards, blanks and core duplicates, as well as routine check assays at a separate secondary laboratory. This QA/QC programme was designed by Dr. Barry Smee of Smee and Associates Consulting Ltd.

Mr. Jeff Toohey, M.Sc., P.Eng., Vice President Exploration for the Company, is a Qualified Person as defined by NI 43-101 and is responsible for the design and implementation of the exploration work being carried out by the Company at the Altar Project. Mr. Toohey is responsible for, and has reviewed and approved of, the information contained in this news release.

Cautionary Note Regarding Forward-Looking Statements

This news release contains 'forward-looking statements' within the meaning of applicable Canadian securities legislation. Such forward-looking statements concern the Company's anticipated results and developments in the Company's operations in future periods, planned exploration and development of its properties, planned expenditures and plans related to its business, mineral resource estimates and other matters that may occur in the future. These statements relate to analyses and other information that are based on expectations of future performance and planned work programmes.

The Company has made a number of assumptions with respect to, among other things, the price of copper and other metals, economic and political conditions, and continuity of operations. Although the Company believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that forward-looking statements will prove to be accurate.

Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors which could cause actual events or results to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, risks related to the following: fluctuations in mineral prices; the Company's dependence on one mineral project; the nature of mineral exploration and mining and the uncertain commercial viability of certain mineral deposits; the reallocation of the proposed uses of the net proceeds of the offering and the private placement; the Company's lack of operating revenues; uncertainty in the Company's ability to obtain necessary financing to fund the development of its mineral properties or the completion of further exploration programmes; the Company's principal property being located in Argentina, including political, economic, and regulatory instability; governmental regulations and obtaining necessary licenses and permits; the Company's mineral properties being subject to prior unregistered agreements, transfers, or claims and other defects in title; fluctuations in the currency markets (particularly the Argentina peso, Canadian dollar and United States dollar); the business being subject to environmental laws and regulations which may increase costs of doing business and restrict the Company's operations; and the Company's dependence on key personnel.

Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the forward-looking statements. The Company's forward-looking statements are based on beliefs, expectations and opinions of management on the date the statements are made. For the reasons set forth above, investors should not place undue reliance on forward-looking statements.

Contacts:

Peregrine Metals Ltd.

Mr. Eric Friedland

President

(604) 669-8800


Peregrine Metals Ltd.

Mr. Michael Westerlund

Vice President Investor Relations & Corporate Communications

(604) 669-8800
info@pmet.com
www.pmet.com