Peregrine Diamonds Ltd (C:PGD)
Shares Issued 93,002,163
Last Close 2/22/2011 $2.32
Wednesday February 23 2011 - News Release

Mr. Eric Friedland reports

REPORT OF ACQUISITION OF SHARES OF PEREGRINE DIAMONDS LTD.

Since his last early warning report dated April 3, 2009, Eric Friedland has exercised all 805,079 of his previously reported warrants to acquire 805,079 common shares of Peregrine Diamonds Ltd. at $1 per share (in respect of 420,000 warrants) and $1.50 per share (in respect of 385,079 warrants) for the total purchase price of $997,618.

Since April 3, 2009, Mr. Friedland has also acquired deemed beneficial ownership of a total of 4,577,700 common shares of Peregrine. A total of 152,700 common shares were acquired directly or indirectly by Mr. Friedland through the Toronto Stock Exchange at prices ranging from $1.70 to $2.27 per share. The balance of 4,425,000 common shares are issuable upon exercise of stock options granted by Peregrine to Mr. Friedland (as to 2,825,000 optioned shares granted in April, 2009, at an exercise price of 60 cents per share and as to 1.6 million optioned shares granted in September, 2009, at an exercise price of $1.84 per share). The option grants were subject to vesting schedules and are now vested or will vest within 60 days.

Mr. Friedland now has deemed beneficial ownership of 22,807,839 common shares of Peregrine, representing 22.0 per cent of the deemed outstanding common shares of Peregrine. After other treasury issuances of common shares by Peregrine, Mr. Friedland's deemed beneficial ownership of common shares of Peregrine has increased by 1.1 per cent from the previously reported percentage of 20.9 per cent.

Common shares of Peregrine acquired by Mr. Friedland have been acquired for investment purposes. Depending on economic and financial conditions, he may acquire further common shares of Peregrine (through market or private transactions or exercises of outstanding stock options and warrants) from time to time.

In respect of the 152,700 common shares of Peregrine acquired directly or indirectly through the Toronto Stock Exchange, Mr. Friedland acquired the shares in reliance on the normal course purchase exemption from formal takeover bid requirements as the acquisition of the shares, when aggregated with other common shares of Peregrine acquired directly or indirectly by him during the prior 12-month period, did not exceed 5 per cent of the common shares of Peregrine at the beginning of the 12-month period and the value of the consideration paid for the shares was not in excess of the market price of the common shares of Peregrine at the date of acquisition, as determined in accordance with applicable securities legislation.

A copy of the related early warning report may be obtained from the SEDAR website or from Mr. Friedland himself at 604-408-8880.

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