Peregrine Diamonds Ltd.

Peregrine Diamonds Ltd.

March 21, 2007 08:30 ET

Peregrine Begins Diamond Exploration at Pellatt Lake, NT, Canada

Peregrine Completes $3 Million Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 21, 2007) - Peregrine Diamonds Ltd. (TSX:PGD) ("Peregrine" or the "Corporation") today announced that it has begun its 2007 diamond exploration program at the Pellatt Lake Project ("Pellatt"), NT, Canada.

Pellatt consists of 25 mineral claims and three mineral leases, covering approximately 30,000 hectares, contiguous to the Northeastern boundary of BHP Billiton's Ekati™ Diamond Mine property (Click on this link: There is one diamondiferous kimberlite (PL-01) currently known on the property, with a second kimberlite (PL06-05) discovered by Peregrine during last season's exploration program (see press release April 24, 2006).

Twenty-nine geophysical anomalies have been identified from the 3,851 line-kilometre Falcon™ airborne gravity gradiometer survey flown by Peregrine over the entire property in 2004. In addition, a total of 210 heavy mineral samples have been collected and processed from Pellatt in 2005 and 2006.

A core-drilling program is scheduled to begin during the second quarter of 2007, initially focusing on 10 high priority targets selected from the Falcon™ and heavy mineral sampling data. At least 1,250 metres of drilling is planned, with additional drilling being undertaken as results warrant.

Detailed ground magnetic surveys will commence shortly, focusing on seven areas identified from the interpretation of the 2005/2006 heavy mineral sampling and the airborne geophysical data. Most of these seven anomalous areas are located along an approximately five kilometre long, WNW-trending structure, with which the PL-01 and PL06-05 kimberlites are associated. Horizontal loop EM (HLEM) surveys will be conducted on any high interest targets identified during these ground magnetic surveys.

An additional 200 heavy mineral samples will also be collected in order to better define the seven anomalous areas identified during the 2006 program.

The three Pellatt mineral leases and three of the claims are in joint venture with DHK Diamonds Inc., while seven of the claims are in joint venture with Dentonia Resources Ltd. Peregrine can earn up to a 75% interest in these two joint ventures, under certain conditions. The remaining 15 claims are held 100% by Peregrine.

Peregrine also announced that it has completed a private placement of common shares for gross proceeds of $3.0 million. A total of 1,200,000 common shares at a price of $2.50 per share were sold under the private placement to a Limited Partnership on a "flow-through" basis pursuant to the Income Tax Act (Canada). The shares issued under the private placement are subject to a hold period in Canada until July 21, 2007. A finder's fee of $100,000, representing 3.34% of the gross proceeds of the private placement, is due in connection with the private placement.

Proceeds from the private placement will be used for the Corporation's mineral exploration projects in Canada.

Dr. Jennifer Pell, P.Geo., Chief Geoscientist for Peregrine Diamonds Ltd., is the Qualified Person under NI 43-101 who is responsible for Peregrine's Canadian diamond exploration projects.

Peregrine is a well-funded Canadian diamond exploration/development company that is managed by experienced geoscientists. The Corporation is completing a third bulk sampling program on its WO Diamond Project, NT, and is exploring for other diamondiferous kimberlites on its extensive land holdings in Canada. The Corporation trades on the Toronto Stock Exchange under the symbol "PGD".

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