Peregrine Announces Discovery of CH-18 Kimberlite and Commencement of CH-6 Kimberlite Mini-Bulk Sample at Chidliak

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 4, 2010) - Peregrine Diamonds Ltd. ("Peregrine" or "the Company") (TSX:PGD) is pleased to report the discovery of the CH-18 kimberlite at the Chidliak project ("Chidliak") on Baffin Island, Nunavut, Canada. CH-18 is located 16 kilometres northwest and 15 kilometres northeast, respectively, of the nearest known kimberlites, CH-13 and CH-12. In addition, the collection of a 12 tonne mini-bulk sample from the CH-6 kimberlite is scheduled to commence this weekend.

The CH-18 drill intersections were interpreted in the field as being both magmatic and pyroclastic kimberlite. The following table summarizes the one angled hole that was drilled from shore across the kimberlite which lies under a lake. Kimberlite material collected from CH-18 will be analyzed for diamonds by caustic dissolution with results expected in the third quarter of this year.

Geophysical anomaly 291, located one kilometre west of CH-18, was also drilled. No kimberlite was intersected and the anomaly was explained by the presence of highly magnetic mafic rock.

The core drill is now being moved to the CH-6 kimberlite where a representative mini-bulk sample of approximately 12 tonnes will be extracted by drilling HQ (6.4 cm diameter) core. In early July, this drill, along with a second drill that is onsite, is scheduled to begin drill-testing new kimberlite targets at Chidliak. As announced on November 12, 2009, a 569 kilogram sample of drill core collected from CH-6 in 2009 yielded 4,737 diamonds larger than the .075 mm sieve size including 109 commercial-size diamonds larger than the 0.850 mm sieve size and 10 diamonds larger than 0.1 carat. These results were processed by the Saskatchewan Research Council by caustic fusion.

A map showing CH-18 and anomaly 291 and a map and diamond results from CH-6 are available at: http://www.pdiam.com/i/pdf/chidliak471.pdf.

As announced on November 24, 2008, BHP Billiton has exercised its earn-in rights for Chidliak. Under the terms of the earn-in agreement, BHP Billiton must incur a total of $22.3 million in exploration expenditures in order to earn a 51 percent interest in Chidliak. BHP Billiton sole-funded a $9.2 million exploration programme in 2009. A $13.9 million programme has been approved for 2010.

Mr. Peter Holmes, P. Geo., Peregrine's Vice President, Exploration, 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. Holmes has reviewed this release and approves of its contents.