Peregrine Diamonds Ltd. ("Peregrine" or "the Company") (TSX:PGD) is pleased to announce that Peregrine and Indicator Minerals Inc. ("Indicator") have agreed to immediately conduct a $2.0 million exploration programme this year at the Nanuq North project ("Nanuq North"), Nunavut, located approximately 275 km north of the community of Rankin Inlet. Peregrine and Indicator have also reached an agreement to adjourn arbitration hearings that had been scheduled to commence on May 7, 2010 so that a formal joint venture agreement can be completed. Nanuq North is located immediately to the north of, and is distinct from, Peregrine's 100% owned Nanuq project ("Nanuq"), where the Company announced on April 28, 2010 that it is conducting a $3.5 million 2010 diamond exploration program (see release at http://www.pdiam.com/i/pdf/PR28Apr10.pdf). To view a map of the properties, click on the following link http://www.pdiam.com/i/pdf/nanuq716.pdf.

2010 Nanuq North Program
Indicator and Peregrine have agreed to equally fund the exploration programme at Nanuq North. The primary goal will be the evaluation of the NQN-001 kimberlite, which was discovered in 2008. Five holes totalling approximately 1,000 metres will be drilled into this kimberlite to provide an estimate of its size, the number of phases (types) of kimberlite present, and to obtain an initial understanding of the distribution of diamonds in the different kimberlite phases.

Drilling is scheduled to commence in the first half of May. Indicator is the Operator at Nanuq North and will use equipment, infrastructure and personnel from Peregrine's Nanuq project.

Nanuq North Background Information
The NQN-001 body is currently interpreted as having a surface area of 4.5 hectares with two phases of kimberlite having distinctly different diamond contents. In 2009, a total of 206 diamonds larger than 0.075 mm was recovered from a 152.75 kg sample of the kimberlite. The largest stone measured 0.98 mm x 0.72 mm x 0.70 mm. The majority of the diamonds described are characterized as white/colorless with no inclusions. The diamond results for the NQN-001 kimberlite, released on February 10, 2009, are presented in the table below.

* The microdiamond analyses were performed at the Saskatchewan Research Council Geoanalytical Laboratories (SRC), which is accredited to the ISO/IEC 17025 standard for microdiamond recovery via caustic fusion.

A kimberlite indicator mineral sampling programme will also be conducted on Nanuq North later in the 2010 season. Sampling results will be used to locate and prioritize geophysical targets for future drill testing.

Exploration expenditures on the 33,100 hectare Nanuq North property are currently funded on a 50/50 basis by Peregrine and Indicator. Under the terms of a letter agreement, Peregrine and Indicator each retain 40 percent interests in 16 claims covering 13,900 hectares, including the claim that hosts the NQN-001 kimberlite. Hunter Exploration Group ("Hunter") retains a 20 percent interest which is carried through completion of a scoping study, and Hunter has a gross overriding royalty of 2% on any revenues generated on the 16 claims. Peregrine and Indicator each have an undivided 50 percent interest in the remaining 35 claims covering 19,200 hectares at Nanuq North.

Mr. Bruce Counts, P.Geoph., President & CEO of Indicator, is a Qualified Person under NI 43-101 and is responsible for the design and execution of the programmes carried out by Indicator at Nanuq North. Mr. Counts is independent of Peregrine.