Peregrine Diamonds Ltd. Vancouver, B.C. TSX : PGD; is primarily focused on diamond development and exploration in Canada, with recent discoveries of three diamond bearing kimberlites on its Chidliak property in Baffin Island and an indicated mineral resource of 18.2 million carats in the DO-27 kimberlite in the Northwest Territories.

In its search for diamonds, Peregrine has a secondary focus on exploration for metals deposits.

Industry experts predict that without significant new discoveries in the coming years, the global demand for diamonds will outstrip supply within a decade.

In July, August and September of 2008, Peregrine established a new Canadian diamond district with the discovery of the estimated six-hectare CH-1 kimberlite, the estimated three-hectare CH-2 kimberlite outcroppings and the estimated two hectare CH-3 kimberlite on the Chidliak property, Baffin Island, Nunavut, Canada.

♦ Chidliak property, Baffin Island, Nunavut

2009 Update

PEREGRINE ANNOUNCES $9.2 MILLION, 2009 DIAMOND EXPLORATION PROGRAMME AT CHIDLIAK, BAFFIN ISLAND, CANADA

Peregrine Diamonds Ltd. has approved a 2009 diamond exploration program with a budget of $9.2-million for the 9,800-square-kilometre Chidliak property, Baffin Island, Nunavut, Canada.

Peregrine will be the operator of the exploration program, which will be fully financed by BHP Billiton. Read More >>

In 2007, Peregrine discovered three diamondiferous kimberlites at the Nanuq property, in the eastern Arctic region of Nunavut, establishing another new Canadian diamond district.

♦ Qilaq project, Baffin Island, Nunavut

Feb. 17, 2009,The Qilaq project, Baffin Island, Nunavut comprises of 86 prospecting permits bordering Peregrine's 980,000 hectare Chidliak project ("Chidliak") on Baffin Island, Nunavut, Canada. The recently approved permits total approximately 1.3 million hectares (13,000 square km).

The Company has named the new permits the Qilaq project ("Qilaq") which means "sky" in the south Baffin Island dialect of Inuktitut, the language spoken by the indigenous people of Nunavut.

Qilaq adjoins Chidliak to the north, east and south. A map showing Qilaq and Peregrine's other prospecting permits on southern Baffin Island is available at.

Qilaq is 100 percent-owned by Peregrine. Other than a one kilometre area around the outer perimeter of Chidliak, Qilaq is not encumbered by any option or earn-in rights.

The geologic features of Qilaq and its proximity to Chidliak make this new project an ideal diamond exploration target.

Of particular interest is the geologic interpretation that Qilaq and Chidliak are underlain by the same ancient Archean bedrock. Most of the world's major diamond deposits are hosted in similar geologic environments.

During the summer of 2009, Peregrine plans to evaluate Qilaq's diamond potential by collecting approximately 600 till samples and analyzing them for kimberlite indicator minerals.

♦ Nanuq property, Nunavut

Nanuq will be a major focus of the Corporation's exploration activity in 2008 and 2009 with the main focus being the investigation of high priority targets in search of new kimberlites.

Also in Nunavut, reconnaissance-scale exploration programs conducted on Baffin Island have led to the acquisition of prospecting permits covering close to three million hectares in five property areas. Both kimberlite and metals anomalies have been identified on the permits.

Metals deposit targets include platinum/palladium, uranium, copper-lead-zinc and gold.

♦ Nanuq North

The Nanuq North Project is located at the head of a well defined kimberlite indicator mineral train. Diamond bearing kimberlites have been discovered on the adjacent Nanuq project and it is believed that this field extends on to the property.

A late season drill program discovered kimberlite on the property.

Peregrine and partner Indicator Minerals (TSX VENTURE:IME) drilled the first kimberlite, NQN-001, on Nanuq North late in the 2008 field season. NQN-001 is interpreted as having a minimum surface area of 4.5 hectares based upon ground magnetic data and drilling information.

Exploration expenditures on the 33,100 hectare Nanuq North property are currently funded on a 50/50 basis by Peregrine and Indicator Minerals Inc.

Under the terms of a letter agreement, the Hunter Exploration Group ("Hunter") retains a 20 percent interest and Peregrine and Indicator each retain 40 percent interests in 16 claims covering 13,900 hectares, including the claim that hosts NQN-001.

Hunter's 20 percent interest is carried through completion of a scoping study. Peregrine and Indicator each have an undivided 50 percent interest in the remaining 19,200 hectares of claims at Nanuq North. Indicator is the operator of the project. http://agoracom.com/ir/indicatormine...

Northwest Territories

♦ WO property

The Corporation has a 71.74% interest in the WO property, located in the Northwest Territories, which hosts the nine hectare DO-27 kimberlite pipe, among others.

DO-27 hosts an indicated mineral resource of 18.2 million carats in 19.5 million tonnes of kimberlite with a grade of approximately 94 carats per hundred tonnes.

These valuation results, along with updated grade and geological information are continually being used to investigate the economic potential of DO-27.

In addition to the WO property Peregrine holds various interests in six exploration properties in the Northwest Territories totalling over 159,000 hectares, Pellat Lake, Lac de Gras East, Lac de Gras West, and Mackay Lake West.

Manitoba

♦ Crosswell River Property, Manitoba

Work to date on the Crosswell River property includes a 10,600 line kilometer fixed-wing airborne magnetic survey in 2006 and follow-up ground magnetic surveys over six anomalies in 2007. In March and April, 2008, two high priority magnetic anomalies were drilled without intersecting kimberlite. At one of the anomalies, a mafic rock containing sulphide was intersected. The rock is currently being investigated for its metals potential.

♦ Weir River Property, Manitoba

The Weir River property is located of the northern edge of the Superior Craton, just north of its exposed margin. It is underlain by Ordovician cover, below which is believed to be Proterozoic rocks of the Trans-Hudson Orogen.

A 2,700 line kilometer fixed-wing airborne magnetic survey was completed over the Weir River property in March, 2007 and follow-up ground magnetic surveys were completed over 10 anomalies later in the year. In April 2008, one high priority magnetic anomaly was drilled without intersecting kimberlite.

Falcon(tm) airborne gravity gradiometer

Peregrine also has the use of one of BHP Billiton's revolutionary Falcon(tm) airborne gravity gradiometer systems for all of North, Central, and South America. The Falcon(tm) system is capable of direct mineral occurrence detection under certain conditions."