Peregrine Discovers Two Kimberlites at Lac de Gras, Canada

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 04/16/12 -- Peregrine Diamonds Ltd. ("Peregrine" or "the Company") (TSX: PGD) is pleased to report that it has discovered two kimberlites in the Lac de Gras region, Northwest Territories, Canada. The kimberlites, named LD-1 and LD-2, were discovered when the first two land-based geophysical targets scheduled for core drilling were drilled earlier this month. Lac de Gras, home to the EKATI and Diavik diamond mines, is one of the most prolific diamond districts in the world since kimberlite was first discovered there in 1991.

The core drill is now being moved to the third of five total targets between one and two hectares in size that are scheduled to be drilled before the program is completed in May, subject to weather and the onset of the spring snow melt.

LD-1 KIMBERLITE

The LD-1 kimberlite is located approximately 12 kilometres west of the Diavik Diamond Mine, and 40 kilometres northwest of Peregrine's 71.9%-owned, nine hectare DO-27 kimberlite, which currently has an 18.2 million carat resource that is open for expansion. LD-1 was discovered when a magnetic low anomaly with a surface expression of approximately one hectare was tested by core drilling. A core hole drilled at an inclination of 50 degrees from horizontal intersected kimberlite from 76 to 168.5 metres. LD-1 is a texturally variable crater-facies volcaniclastic kimberlite that contains chrome diopside, garnet and coarse olivine.

LD-2 KIMBERLITE

The LD-2 kimberlite is located 2.5 kilometres west of the DO-27 kimberlite. LD-2 was discovered when a magnetic high anomaly with a surface expression of approximately one hectare was tested by core drilling. Angle holes were drilled into the kimberlite at inclinations of 45 and 60 degrees from horizontal from the same setup, intersecting kimberlite from 14 to 74 metres and from 20 to 110 metres, respectively. LD-2 is a black, resedimented volcaniclastic kimberlite with about 5% country rock xenoliths and containing coarse olivine and garnet.

Mr. Eric Friedland, CEO of Peregrine, said, "Peregrine's new discovery of kimberlites in Lac de Gras, a diamond district that has seen some of the most intensive diamond exploration in the world over the last 20 years, is especially gratifying and demonstrates again that we have one of the best diamond exploration teams ever assembled. Peregrine's team has also discovered two new diamond districts in Canada since 2007, Chidliak and Nanuq, both in Nunavut, a remarkable achievement given the challenges of diamond exploration, especially in Canada's Arctic. I anticipate that our team will make additional kimberlite discoveries as we continue our program at Lac de Gras over the next month and undertake our 2012 exploration and pre-bulk sample drill programs at our advanced Chidliak diamond project on Baffin Island."

Samples from the LD-1 and LD-2 kimberlites will be sent to the Saskatchewan Research Council Analytical Laboratories for microdiamond testing by caustic fusion with results anticipated in the third quarter.

Peregrine's mineral interests in the Lac de Gras district consist of 51,000 hectares of claims 100%-owned by Peregrine, 32,200 hectares of claims in joint venture with Thelon Capital Ltd. (66.2% Peregrine, 33.8% Thelon) where the LD-1 discovery was made and the 14,000 hectare WO Joint Venture (Peregrine 71.9%, Archon Minerals Ltd. 17.5% and DHK Diamonds Inc. 10.6%) where the LD-2 discovery was made. Peregrine holds 97.92% of the diamond marketing rights for the WO Joint Venture. The DO-27 kimberlite is located within the WO Joint Venture.

Mr. Peter Holmes, P. Geo., Peregrine's Exploration Manager, is a Qualified Person under NI 43-101 and is responsible for the design and conduct of the exploration programs carried out by the Company on the Lac de Gras project. Mr. Holmes has reviewed this release and approves of its contents.

About Peregrine Diamonds Ltd.

Peregrine Diamonds Ltd. is a diamond exploration and development company focussed on Canada's North. Peregrine has discovered two new diamond districts in Nunavut, Nanuq in 2007 and Chidliak in 2008. At the DO-27 kimberlite in the Northwest Territories, located 27 kilometres from the Diavik Diamond Mine, a NI 43-101 compliant mineral resource of 18.2 million carats in 19.5 million tonnes of kimberlite at a grade of 0.94 carats per tonne, which is open at depth, was confirmed in 2008. At its 100%-owned Chidliak project, located 120 kilometres from Iqaluit, the capital of Nunavut, the Company has discovered 59 kimberlites to date, and is preparing to collect the first bulk samples from up to 6 kimberlites that show economic potential, beginning in 2013. Peregrine also continues to evaluate earlier stage diamond exploration projects it controls in Nunavut and Northwest Territories.

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.

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, Vice President

Investor Relations and Corporate Communications

604-408-8880


Peregrine Diamonds Ltd.

Investor Relations

604-408-8880

604-408-8881 (FAX)
investorrelations@pdiam.com
www.pdiam.com