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VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/01/12 -- Peregrine Diamonds Ltd. ("Peregrine" or "the Company") (TSX:PGD) has commenced a $1.5 million diamond exploration program in the Lac de Gras region of the Northwest Territories, Canada, approximately 300 kilometres northeast of Yellowknife. The program will include ground geophysical surveying and the drilling of high-priority kimberlite targets. Lac de Gras is one of the most prolific diamond districts in the world, hosting the Diavik and EKATI diamond mines and Peregrine's 71.9%-owned, nine hectare DO-27 kimberlite, which currently has an 18.2 million carat resource that is open at depth. As part of this program, the Company will re-value diamonds previously recovered from DO-27 as a component of an analysis of the current economics of this large kimberlite pipe.

2012 Exploration Program

The exploration program fieldwork has commenced. Mobilisation of the diamond core drill is underway and drilling will commence in early March. Currently eight geophysical targets between one and two hectares in size, with associated kimberlite indicator minerals, are drill-ready. Ground magnetic and electromagnetic geophysical surveys will be completed over 15 anomalies and additional priority drill targets that are expected to be defined by these surveys will also be tested. It is anticipated that drilling will be completed by early May.

The Lac de Gras projects consist of 51,000 hectares of claims 100%-owned by Peregrine, 36,400 hectares of claims in joint venture with Thelon Capital Ltd. (66.2% Peregrine, 33.8% Thelon) and the 15,107 hectare WO Joint Venture (Peregrine 71.9%, Archon Minerals Ltd. 17.5% and DHK Diamonds Inc. 10.6%). Peregrine holds 97.92% of diamond marketing rights for the WO Joint Venture.

The DO-27 kimberlite is located within the WO Joint Venture. The discovery of a new kimberlite with economic potential on Peregrine's Lac de Gras projects could significantly enhance the value of the DO-27 resource.

DO-27

The DO-27 diamond deposit is located 27 kilometres from the Diavik Diamond Mine and 56 kilometres from the EKATI Diamond Mine. On June 24, 2008, Peregrine reported a NI 43-101 compliant indicated mineral resource for DO-27 of 18.2 million carats in 19.5 million tonnes of kimberlite at a grade of 0.94 carats per tonne. Also, a potential mineral deposit of an additional 6.5 to 8.5 million tonnes of kimberlite at depth was identified. Since that time, rough diamond prices have increased significantly, a trend that is expected to continue due to increasing global demand for diamonds, particularly in Asia. In light of this, Peregrine will commission a new independent valuation of diamonds recovered from DO-27. As reported on December 17, 2007, the modelled diamond value from WWW International Diamond Consultants Ltd. ("WWW") for a 2,075 carat parcel from DO-27 ranged from US $43 to $70 per carat, with a base case of US $51 per carat.

Images of some of the new targets, as well as photos of the DO-27 diamonds, are available on Peregrine's web-site at www.pdiam.com/i/pdf/LacdeGras621.pdf.

Regards

Hg