Peregrine Reports New Microdiamond Results For CH-7 Kimberlite at Chidliak

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 02/27/12 -- Peregrine Diamonds Ltd. ('Peregrine' or 'the Company') (TSX: PGD) is pleased to report new microdiamond results from samples of drill core from the CH-7 kimberlite that continue to demonstrate coarse diamond size distributions. CH-7 is located on the 8,580 square kilometre Chidliak project ('Chidliak' or 'the Project') on Baffin Island, Nunavut, Canada. These sample results are from previously untested zones in the south lobe and northwest portion of CH-7.

The following table summarizes caustic fusion diamond results from the CH-7 kimberlite. The analyses were performed at the Saskatchewan Research Council Geoanalytical Laboratories ('the SRC').

SUMMARY OF CAUSTIC FUSION DIAMOND RESULTS FOR SAMPLES FROM THE CH-7 KIMBERLITE

                 Numbers of Diamonds According to Sieve Size
                               Fraction (mm)
             ---------------------------------------------------      Carats
Drill         +0.  +0.  +0.  +0.  +0.  +0.  +0.  +1. +1. +2. +3. Total  (+0.
Hole   Sample 106  150  212  300  425  600  850  180 700 360 350  Dia-   850
#      Weight -0.  -0.  -0.  -0.  -0.  -0.  -1.  -1. -2. -3. -4.  mon-    mm
(Unit)   (kg) 150  212  300  425  600  850  180  700 360 350 750    ds size)
----------------------------------------------------------------------------
South Lobe
----------------------------------------------------------------------------
#8,13
 (KIM
 -E)    203.8  86   67   51   25   16    8    3    1   1   0   0   258 0.174
----------------------------------------------------------------------------
#14
(KIM-
 F)     202.1  66   45   50   23   19    6    3    0   1   1   0   214 0.332
----------------------------------------------------------------------------
Northwest portion of kimberlite
----------------------------------------------------------------------------
#7(Mar
-ginal
 Units
 )      175.4 242  132   74   51   25   10    8    3   0   0   1   546 0.668
----------------------------------------------------------------------------

Of special note is a 175.4 kg sample from the bottom of drill hole #7 in the northwest portion of CH-7 that returned 546 diamonds larger than the 0.106 mm sieve size including 12 diamonds larger than the 0.85 mm sieve size weighing a total of 0.668 carats. The largest diamond in the sample was described by SRC as a 0.51 carat, off-white octahedron.

Mr. Brooke Clements, President of Peregrine, said, 'Today's results from almost 600 kilograms of drill core reflect the consistently strong diamond content and coarse diamond size distribution we are seeing in samples from all across CH-7. All of the diamond results to date show that this kimberlite could have a grade of at least one carat per tonne, which reinforces our belief that Chidliak will be Baffin Island's first diamond mine.'

Discovered in 2009 by prospecting, CH-7 is one of the six kimberlites considered to have economic potential within the Southern Focus Area of Chidliak, an area with a radius of only eight kilometres. To date, two vertical and 12 inclined core holes for a total of 2,009 metres and two reverse circulation ('RC') holes for a total of 77 metres, have been drilled at CH-7. The drill data and interpretation of geophysical data indicate that CH-7 has a surface area of approximately one hectare and is open at depth.

The current geological interpretation of CH-7, based on detailed core logging, suggests that there are distinct northern and southern lobes. The northern lobe consists of coarse olivine and indicator mineral-rich, coherent kimberlite (KIM-A), from which a 47 tonne surface sample collected in 2010 returned a grade of 1.04 carats per tonne. The southern lobe is comprised mainly of at least three units of indicator mineral-rich, pyroclastic kimberlite with sharp internal contacts (KIM-B, C and F). There is also at least one indicator mineral-rich coherent kimberlite unit (KIM-D) and a spatially related weathered kimberlite (KIM-E) in the southern lobe. A series of mixed coherent and pyroclastic kimberlite units, marginal to the northern and southern lobes, make up the northwestern portion of the pipe.

Previous diamond results from CH-7 were reported in news releases issued on February 22, 2011, November 22, 2010 and October 5, 2009.

Future Work

The collection of a bulk sample from CH-7 by RC drilling, designed to collect at least 200 carats of diamonds for diamond valuation, is scheduled for early 2013. Peregrine plans to drill up to seven core holes into CH-7 this year as pilot holes for the 2013 bulk sample, to acquire preliminary geotechnical information and to better define the pipe's size and internal geology.

Images and additional information about the CH-7 pipe, including complete diamond results to date, are available on Peregrine's website at www.pdiam.com/i/pdf/chidliak691.pdf.

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. O'Connor 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 programme, 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 programmes, 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.

Contacts:

Peregrine Diamonds Ltd.

Mr. Eric Friedland

CEO

604-408-8880


Peregrine Diamonds Ltd.

Mr. Brooke Clements

President

604-408-8880


Peregrine Diamonds Ltd.

Mr. Mike Westerlund

VP, Investor Relations and Corporate Communications

604-408-8880


Peregrine Diamonds Ltd.

Investor Relations

604-408-8880
investorrelations@pdiam.com
www.pdiam.com