Peregrine Diamonds Ltd.
TSX VENTURE : PGD

Peregrine Diamonds Ltd.

March 16, 2006 06:30 ET

Peregrine Diamonds Ltd.: Encouraging Micro-Diamond Results Received from North-Eastern Lobe of DO-27

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 16, 2006) -

0.59 and 0.18 carat diamonds found in NQ diameter (47mm) core holes

Peregrine Diamonds Ltd. ("Peregrine") (TSX VENTURE:PGD) is pleased to announce
the results of caustic fusion analysis of micro-diamond samples by the
Saskatchewan Research Council ("SRC") of the seven NQ diameter core holes
drilled into the north-eastern lobe of the DO-27 kimberlite, WO Diamond Project,
NWT, Canada, last Fall.

The north-eastern lobe of DO-27 was subject to an underground bulk sample
by Kennecott Canada Exploration Inc. ("KCEI") in 1994 and results from that
bulk sample, which was largely from a basal volcaniclastic unit, graded
0.36 carats/tonne. Peregrine's successful 2005 mini-bulk sample of the Cr-
diopside rich pyroclastic phase of the main vent of DO-27 ("PK"), which is
geologically distinct to the volcaniclastic kimberlites in the north-eastern
lobe and constitutes the majority of the kimberlite at DO-27, graded
0.98 carats/tonne.

The geology of the north-eastern lobe of DO-27 is more complex than the
main vent and consists of a thin, discontinuous, upper volcaniclastic unit
("Upper VK"), a pyroclastic unit ("PK") that is contiguous with the PK of the
main vent, and a highly variable, volcaniclastic unit ("Lower VK") that can be
correlated as a package, but contains many layers that cannot be easily
correlated from hole to hole. The Lower VK is underlain by volcaniclastic
microbreccia and hypabyssal rocks. Geological observations from core drilling
and these latest micro-diamond results further substantiate that the Upper and
Lower VK units of the north-eastern lobe of DO-27 are geologically distinct
from the pyroclastic unit of the main vent. The various sub-units within the
Lower VK (referred to as Lower VK-1 through Lower VK-5) reveal micro-diamond
counts that are both higher and lower than those from the PK unit, implying
that different horizons within this Lower VK unit have different diamond
contents. Sub-unit Lower VK-1 is a black, olivine, macrocrystal volcaniclastic
kimberlite which is similar to the kimberlite described by KCEI for their
underground adit, which further suggests that KCEI's 1994 bulk sample may have
sampled one of the lower grade horizons.

The fact that relatively large diamonds (0.59 and 0.18 carats) were
obtained from NQ core drill intercepts in the Lower VK unit of the north-
eastern lobe indicates good potential for the presence of large stones within
the north-eastern lobe. Also, the presence of horizons within the north-
eastern lobe with micro-diamond contents equal or better than those seen in
the main vent suggests that portions of the north-eastern lobe could grade
higher than the main vent.

The PK and Lower VK units are the two volumetrically most significant
units in the north-eastern lobe and comprise most of the samples submitted for
micro-diamond analysis. The volcaniclastic microbreccia and the hypabyssal
breccia were not sampled due to the volumetric insignificance and granitic
dilution with these particular units. Material from the seven core holes have
been combined by geological unit to give a better understanding of the
micro-diamond distribution within each geological unit.

Micro-diamond results for the seven core holes drilled into the
north-eastern lobe of DO-27 are as follows:



Upper VK and Main PK
-------------------------------------------------------------------
Unit Upper VK PK (upper horizon) PK (lower horizon)
----------------------------- ------------------ ------------------
Lower Total Total Total Total Total Total
Sieve Stones Carats Stones Carats Stones Carats
----------------------------- ------------------ ------------------
+4.75 mm 0 0 0 0 0 0
----------------------------- ------------------ ------------------
+3.35 mm 0 0 0 0 0 0
----------------------------- ------------------ ------------------
+2.36 mm 0 0 0 0 0 0
----------------------------- ------------------ ------------------
+1.70 mm 0 0 0 0 1 0.082195
----------------------------- ------------------ ------------------
+1.18 mm 0 0 1 0.038415 2 0.038035
----------------------------- ------------------ ------------------
+0.85 mm 0 0 4 0.033735 10 0.10699
----------------------------- ------------------ ------------------
+0.60 mm 0 0 14 0.04835 20 0.066265
----------------------------- ------------------ ------------------
+0.425 mm 3 0.003115 20 0.02619 26 0.03461
----------------------------- ------------------ ------------------
+0.300 mm 1 0.000465 41 0.022155 62 0.03344
----------------------------- ------------------ ------------------
+0.212 mm 10 0.00173 53 0.009665 95 0.01729
----------------------------- ------------------ ------------------
+0.150 mm 3 0.0002 62 0.00446 112 0.00784
----------------------------- ------------------ ------------------
+0.106 mm 15 0.000375 115 0.00337 165 0.004575
----------------------------- ------------------ ------------------
+0.075 mm 14 0.000175 139 0.001975 254 0.003195
----------------------------- ------------------ ------------------
Total 46 0.00606 449 0.188315 747 0.394435
----------------------------- ------------------ ------------------
Sample
Weight (kg) 22.1 172.3 222.6
----------------------------- ------------------ ------------------
Stones per kg 2.08 2.61 3.36
-------------------------------------------------------------------


Lower VK - (listed by sub-units Lower VK-1 through Lower VK-5)
-------------------------------------------------------------------
Unit Lower VK - 1 Lower VK - 2 Lower VK - 3
----------------------------- ------------------ ------------------
Lower Total Total Total Total Total Total
Sieve Stones Carats Stones Carats Stones Carats
----------------------------- ------------------ ------------------
+4.75 mm 0 0 0 0 0 0
----------------------------- ------------------ ------------------
+3.35 mm 0 0 1 0.592385 0 0
----------------------------- ------------------ ------------------
+2.36 mm 1 0.181255 0 0 0 0
----------------------------- ------------------ ------------------
+1.70 mm 0 0 0 0 0 0
----------------------------- ------------------ ------------------
+1.18 mm 0 0 0 0 0 0
----------------------------- ------------------ ------------------
+0.85 mm 3 0.032415 0 0 1 0.01464
----------------------------- ------------------ ------------------
+0.60 mm 2 0.00702 1 0.003785 5 0.021925
----------------------------- ------------------ ------------------
+0.425 mm 2 0.002035 1 0.00216 6 0.011645
----------------------------- ------------------ ------------------
+0.300 mm 14 0.00628 8 0.00418 12 0.00482
----------------------------- ------------------ ------------------
+0.212 mm 21 0.003075 13 0.00221 17 0.002695
----------------------------- ------------------ ------------------
+0.150 mm 27 0.00197 17 0.001465 14 0.000865
----------------------------- ------------------ ------------------
+0.106 mm 19 0.00062 32 0.00092 24 0.000705
----------------------------- ------------------ ------------------
+0.075 mm 44 0.00061 12 0.000235 69 0.000805
----------------------------- ------------------ ------------------
Total 133 0.23528 85 0.60734 148 0.0581
----------------------------- ------------------ ------------------
Sample
Weight (kg) 72.6 32.85 40.95
----------------------------- ------------------ ------------------
Stones per kg 1.83 2.59 3.61
-------------------------------------------------------------------


Lower VK - (listed by sub-units Lower VK-1 through Lower VK-5)
------------------------------------------------
Unit Lower VK - 4 Lower VK - 5
----------------------------- ------------------
Lower Total Total Total Total
Sieve Stones Carats Stones Carats
----------------------------- ------------------
+4.75 mm 0 0 0 0
----------------------------- ------------------
+3.35 mm 0 0 0 0
----------------------------- ------------------
+2.36 mm 0 0 0 0
----------------------------- ------------------
+1.70 mm 0 0 0 0
----------------------------- ------------------
+1.18 mm 0 0 1 0.044135
----------------------------- ------------------
+0.85 mm 1 0.016465 1 0.006355
----------------------------- ------------------
+0.60 mm 4 0.020085 0 0
----------------------------- ------------------
+0.425 mm 6 0.00878 4 0.00491
----------------------------- ------------------
+0.300 mm 8 0.00447 12 0.006415
----------------------------- ------------------
+0.212 mm 22 0.003695 17 0.002895
----------------------------- ------------------
+0.150 mm 45 0.00299 24 0.001325
----------------------------- ------------------
+0.106 mm 58 0.001445 31 0.000755
----------------------------- ------------------
+0.075 mm 57 0.00065 43 0.00051
----------------------------- ------------------
Total 201 0.05858 133 0.0673
----------------------------- ------------------
Sample
Weight (kg) 63.45 44.45
----------------------------- ------------------
Stones per kg 3.17 2.99
------------------------------------------------


DO-18

Micro-diamond results for DO-18, a kimberlite located approximately
700 meters North of DO-27, are pending from SRC and should be received by
mid-April, 2006.

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", "plan", "estimate", "expect", "intend", "may",
"potential", "should", 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.

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