Peregrine Diamonds Ltd.

Peregrine Diamonds Ltd.

March 24, 2010 08:30 ET

Peregrine Commences Spring Diamond Exploration Programme at Chidliak

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 24, 2010) - Peregrine Diamonds Ltd. ("Peregrine" or "the Company") (TSX:PGD) is pleased to report the commencement of the Spring phase of the $13.5 million, 2010 diamond exploration programme on the 9,800 square kilometre Chidliak project ("Chidliak" or "the Project") on Baffin Island, Nunavut, Canada. Peregrine is the operator of the 2010 programme.

Brooke Clements, Peregrine's President, said, "Our team is looking forward to an exciting and rewarding 2010 exploration season at Chidliak. By utilizing two drill rigs instead of one, devoting significantly more resources to prospecting and geophysics, and having an exploration season that will be more than twice as long with a budget close to 50 percent higher than last year's, we are confident that we will build on the great success we enjoyed in 2009."

The Spring phase of the 2010 Chidliak exploration program commenced in the second week of March with site preparation. Airborne and ground geophysical surveying programmes are underway and core drilling is scheduled to commence in the third week of April. A heli-borne magnetic/electromagnetic geophysical survey of approximately 13,300 line kilometres at 100 metre line spacing is being flown by Fugro Airborne Surveys Corp. to complement the 11,700 line kilometre airborne geophysical survey that was completed in 2008. This year's survey is designed to investigate at least ten kimberlite indicator mineral anomalies that were not covered by the 2008 survey. A six-person ground magnetic geophysical survey crew will evaluate up to 50 anomalies selected from the 2008 and 2010 airborne surveys and the highest priority targets will be drilled this year.

At least five lake-based, high priority kimberlite-type geophysical anomalies will be drilled from lake ice using a second drill rig that will be mobilized to Chidliak in mid-April. The first two anomalies scheduled for drilling are located 35 kilometres north of the nearest known diamondiferous kimberlites, CH-6 and CH-10. These two anomalies are approximately 200 metres apart and each has an estimated surface expression of at least one hectare. To view an image of these anomalies please visit the following link:

A detailed summary of the Spring and Summer phases of the 2010 Chidliak exploration programme were released by the Company on December 21, 2009. To view this press release, please visit the following link:

Under the terms of the earn-in agreement with BHP Billiton announced on November 24, 2008, BHP Billiton must incur a total of $22.3 million in exploration expenditures to earn a 51 percent interest in Chidliak. After sole-funding approximately $11.5 million of the approved $13.5 million 2010 exploration programme, BHP Billiton will have vested a 51 percent interest in the Project.

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 on the Chidliak property. Mr. Holmes 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 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 otiain required project approvals, any changing budget priorities of BHP Billiton, 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.

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