VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 20, 2011) - Peregrine Diamonds Ltd. ("Peregrine" or "the Company") (TSX:PGD) is pleased to report the discovery of the CH-51 kimberlite by core drilling on the Chidliak project ("Chidliak") on Baffin Island, Nunavut, Canada.

CH-51 is the first target drilled in 2011 and the fifty-first kimberlite discovered at Chidliak since 2008.

CH-51 is located approximately 200 metres south of the CH-17 kimberlite, ten kilometres south of the CH-28 kimberlite and 40 kilometres north of the Southern Focus Area.

Currently, CH-28 and six kimberlites within the Southern Focus Area have characteristics consistent with economic potential in Arctic settings.

CH-51 was discovered by drilling one vertical core hole from lake ice into a high-priority magnetic high anomaly. Kimberlite was intersected over an interval of 101 metres from a depth of 33 to 134 metres underneath 25 metres of water and eight metres of overburden. Mantle xenoliths, abundant kimberlite indicator minerals and Paleozoic carbonate rock fragments were observed in the drill core. From 134 to 171 metres, gneiss with minor kimberlite stringers was intersected and from 171 to 175 metres a macrocrystic kimberlite dyke was encountered. The hole was terminated in gneiss at a depth of 188 metres. Based on interpretation of the ground geophysical data, CH-51 has an estimated surface expression of one hectare.

Next Steps

The drilling of a vertical core hole into the CH-17 kimberlite is about to commence. CH-17 was discovered in 2010 by core drilling, but sufficient material for diamond testing was not recovered. Upon completion of this hole, the rig is scheduled to drill the CH-28 kimberlite and anomaly 440.

Discovered by prospecting, CH-28 has an estimated surface expression of two hectares and as announced on September 23, 2010, a 239 kilogram sample collected at surface yielded 196 carats of commercial-size (+0.85 mm) diamonds.

Anomaly 440 is a magnetic high located approximately five kilometres northeast of CH-28 with an estimated surface expression of one hectare.

A second core rig is scheduled to commence drilling at Chidliak before the end of this month.

After testing lake-based magnetic high anomaly 153, which has an estimated surface expression of two hectares and is located 20 kilometres southeast of the Southern Focus Area, the rig will be utilized to drill the CH-33 kimberlite and complete a mini-bulk sampling program on the CH-31 kimberlite. Based on interpretation of ground geophysical data, the diamondiferous CH-33 kimberlite has an estimated surface expression of greater than seven hectares. Diamond results for CH-33 were reported on January 13, 2011.

As reported on October 29, 2010, CH-31 has an estimated surface expression greater than five hectares and an 840 kilogram sample yielded 1.39 carats of commercial-size diamonds including a 1.15 carat stone. Up to seven core holes will be drilled at CH-31 in an effort to recover approximately five tonnes of kimberlite.

The reverse circulation ("RC") drill rig that was stored at Chidliak over the winter is scheduled to commence drilling priority kimberlite targets in May.

The first target for the RC rig is expected to be anomaly 551, located 2.5 kilometres northeast of the CH-6 kimberlite. Anomaly 551 is a subtle magnetic low with a corresponding electromagnetic signature with an estimated surface expression of seven hectares.

A map showing CH-51 and photographs of drill core, as well as images of CH-28 and anomalies 440,153 and 551, are available at www.pdiam.com/i/pdf/chidliak747.pdf.

Chidliak is a joint venture between Peregrine (49%) and BHP Billiton (51%).

Regards,

Hg