Peregrine Diamonds Ltd.

Peregrine Diamonds Ltd.

February 24, 2006 13:46 ET

Peregrine Diamonds Ltd.: Diamond Exploration Program Commences at Pellatt Lake, Second Large Diameter RC and Third Core Rig Arrive at DO-27

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Feb. 24, 2006) - Peregrine Diamonds Ltd. ("Peregrine") (TSX VENTURE:PGD) today announced the commencement of the 2006 diamond exploration program at the Pellatt Lake Project, NWT, Canada. In addition, Peregrine announced that the second large diameter (24") reverse circulation ("RC") rig and the third core rig have arrived at the DO-27 kimberlite, WO Diamond Project, NWT, Canada.

Pellatt Lake Project

The Pellatt Lake Project comprises twenty-eight mineral claims covering 72,310 acres, located 42 km to the northeast of BHP Billiton's Ekati™ Diamond Mine.

Work by previous operators on the property included airborne electromagnetic and magnetic surveys and heavy mineral sampling. Kimberlite indicator minerals have been recovered over much of the property, many with no known source. Previous diamond drilling intersected one kimberlite, PL01. In 2004, Peregrine flew a Falcon(tm) gravity gradiometer survey over the property and in 2005 collected additional heavy mineral samples resulting in the identification of a number of anomalies.

For the 2006 program, at least 12 anomalies will be covered with ground geophysical surveys (magnetics and HLEM). A drill will be mobilized to site during mid-March, and drilling will be completed on a number of targets.

Seven of the Pellatt claims are in joint venture with Dentonia Resources Ltd., 6 others are in joint venture with DHK Diamonds Inc. (in both instances Peregrine can earn up to 75% under certain conditions) and the remaining 16 claims are held 100% by Peregrine.

DO-27 Project

Careful advanced planning and logistics work by Peregrine at DO-27 in 2005 has resulted in all five scheduled drill rigs and auxiliary equipment arriving on-site at the DO-27 kimberlite in a timely manner in spite of unseasonably warm weather in Canada's North which has had a detrimental effect
on the main Contwoyto to Tibbitt Ice Road, delaying equipment and supplies transportation for numerous mining, exploration and services companies. Bulk sample and geological drilling is continuing at DO-27, and updates will be provided as the program progresses.

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

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