VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 2, 2012) - Peregrine Diamonds Ltd. ("Peregrine" or "the Company") (TSX:PGD) is pleased to report that it has completed the purchase of BHP Billiton's 51 percent participating interest in the 8,580 square kilometre Chidliak diamond project ("Chidliak" or "the Project"), Baffin Island, Nunavut, Canada that was announced on December 20, 2011. The purchase gives Peregrine 100 percent ownership of Chidliak, providing its shareholders with all the benefits of the potentially economic diamond discoveries made to date and continued exposure to the Project's exceptional exploration upside. As part of the transaction, Peregrine also acquired BHP Billiton's Canadian diamond exploration database that was compiled over a ten year period at considerable expense and effort. The database contains data from 38,000 kimberlite indicator mineral samples covering an area of approximately three million square kilometres and will give Peregrine a valuable advantage in achieving one of its goals, the discovery of Canada's next diamond district.

Under the terms of the agreement, BHP Billiton will retain a two percent royalty on mineral production from Chidliak with Peregrine having the right to match any offer by a third party to purchase any of the royalty, should BHP Billiton decide to sell.

In addition, Peregrine will pay BHP Billiton a total of CAD$9 million over three years starting with $1.5 million which was paid at closing and $2.5 million which will be paid on January 31st of 2013, 2014 and 2015.

Peregrine is also pleased to announce that Mr. Tom Peregoodoff has joined the Company as Executive Vice President, Business Development.

Mr. Peregoodoff has over 25 years of mining and petroleum industry experience, including 18 years with BHP Billiton. Since 2008 he was Vice President, Early Stage Exploration and was accountable for global early-stage exploration activities across all commodities. He was a member of the Minerals Exploration Executive Committee that set long term strategy and direction for BHP Billiton's Mineral Exploration division.

Prior to this he held several senior roles in BHP Billiton's exploration division in commercial, operational and technical capacities, including Commercial Manager, Diamonds. He was a Director of a number of BHP Billiton owned entities and has extensive global exploration, operations and business development experience. Mr. Peregoodoff holds a BSc. in Geophysics from the University of Calgary.

Commenting on Mr. Peregoodoff's appointment and the closing, Peregrine's CEO, Mr. Eric Friedland, said, "I have known Tom professionally for almost ten years. In fact, it was he and I that created the exploration concept in 2004 between BHP Billiton and Peregrine that led to the Chidliak diamond discovery. Tom is a highly experienced and consummate professional and we are fortunate to have an exploration executive of his calibre become part of one of the world's strongest diamond development teams.

This is the beginning of a new era for Peregrine as 100 percent owner of Chidliak, and Tom's decision to join our Company, along with BHP Billiton's acceptance of a royalty on future mineral production from the Project, is attestation to the real potential of Chidliak becoming Baffin Island's first diamond mine."