Peregrine Diamonds Ltd.

Peregrine Diamonds Ltd.

May 11, 2006 14:10 ET

Peregrine Diamonds Ltd.: Update on DO-27, WO Diamond Project, NWT, Canada

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 11, 2006) - Peregrine Diamonds Ltd. ("Peregrine") (TSX VENTURE:PGD) today announced that large diameter RC ("LDRC") drilling on the lake-ice at DO-27 has been completed for this year. LDRC drilling on the land-based portion of DO-27 (Northeast Lobe) is scheduled to begin in August, 2006. LDRC drilling of the DO-18 kimberlite is scheduled to begin October, 2006.

A total of eighteen LDRC holes totaling 3202 meters have been completed to date at DO-27 by Peregrine including twelve holes totaling 2424 meters completed this winter.

Approximately 566 tonnes of kimberlite were extracted during the winter 2006 bulk sampling program for a total of over 717 tonnes of kimberlite extracted from DO-27 to date by Peregrine through LDRC drilling. The 2006 program recovered material from vertical depths of up to 403 meters as compared to 209 meters in the 2005 program.

This year's bulk sample consisting of 444 samples have been delivered to the Ekati™ Diamond Mine for diamond recovery processing which is scheduled for June/July, 2006.

A total of twenty-four NQ and HQ core holes totaling 5233 meters have been completed to date at DO-27 by Peregrine including twelve holes totaling 2929 meters this winter. Core drilling is currently continuing with the following objectives:

- Delineation drilling of DO-27, particularly the Northeast Lobe which is land based.

- Geotechnical drilling at DO-27.

- Exploration drilling in the area between DO-27 and DO-18 where previous core drilling intersected kimberlite and where geophysical gravity data suggests that DO-27 and DO-18 may be connected at depth.

The WO Diamond Project is a joint venture with Peregrine holding a 54.475% interest plus Operatorship. The other partners' project interests are as follows: Archon Minerals Ltd 13.275%, Aber Diamond Corp. 7.35%, DHK Diamonds Inc. 20% (1/3 controlled by each of Dentonia Resources Ltd., Horseshoe Gold Mining Inc., and Kettle River Resources Ltd.), and SouthernEra Diamonds Inc. 4.9%.

Peregrine's diamond exploration programs are conducted under the direction of Dr. Jennifer Pell, Vice President Exploration, P. Geo., (BC), P. Geo. (NT/NU), a qualified person under NI 43-101.

Peregrine is a well funded Canadian diamond exploration/development company that is managed by experienced geoscientists. The company is taking the plus 9 hectare DO-27 diamondiferous kimberlite into pre-feasibility, and is exploring for other diamondiferous kimberlites on its extensive land holdings in Canada. The company trades on the TSX-V Exchange under the symbol "PGD".

Peregrine Diamonds Ltd.

Eric Friedland, President and CEO

Alan Carter, COO

Forward-Looking Statements: This document includes forward-looking statements. Forward-looking statements include, but are not limited to statements concerning Peregrine's projects, pre-feasibility studies, and other statements that are not historical facts. When used in this document, the words such as "could," "confident", "plan", "estimate", "expect", "anticipated", "intend", "may", "potential", "should", "scheduled", "significant", and similar expressions are forward-looking statements. Although Peregrine Diamonds Ltd. believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risk and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements are disclosed under the heading "Risk Factors" and elsewhere in the corporation's periodic filings with Canadian regulators.

Contact Information

  • Peregrine Diamonds Ltd.
    Eric Friedland
    President and CEO
    (604) 408-8880
    Peregrine Diamonds Ltd.
    Alan Carter
    (604) 408-8880
    (604) 408-8881 (FAX)