VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 6, 2010) - Peregrine Diamonds Ltd. ("Peregrine" or "the Company") (TSX:PGD) is pleased to report encouraging diamond results from the first two kimberlites (Q1 and Q2) discovered on the Company's 100 percent-owned, 854,000 hectare Qilaq project ("Qilaq" or "the Project"). Qilaq is located on Hall Peninsula, northeast of Iqaluit, the capital of Nunavut, Canada, and is adjacent to Peregrine's Chidliak project ("Chidliak") where, as reported in a news release on September 16, 2010, the Company has discovered 50 kimberlites since July, 2008.

A 62.7 kilogram sample from Q1 yielded 38 diamonds larger than 0.106 mm sieve size including one diamond larger than the 0.600 mm sieve size, and a 241.5 kilogram sample from Q2 yielded 253 diamonds larger than 0.106 mm, including three diamonds larger than 0.600 mm.

The following table summarizes caustic fusion diamond results from the Q1 and Q2 kimberlites. The analyses were performed at the Saskatchewan Research Council Geoanalytical Laboratories ("the SRC").

SUMMARY OF CAUSTIC FUSION DIAMOND RESULTS FOR SAMPLES FROM THE Q1 AND Q2    

KIMBERLITES                                                                 

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                          Numbers of Diamonds According to Sieve 

                                    Size Fraction (mm)           

              Sample     ----------------------------------------

              Weight         +0.106    +0.150    +0.212    +0.300

Kimberlite      (kg)         -0.150    -0.212    -0.300    -0.425

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Q1              62.7             17         9         5         4

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Q2             241.5            111        63        45        23

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             Numbers of Diamonds According to Sieve                         

                       Size Fraction (mm)                                   

            ----------------------------------------                  Carats

                +0.425    +0.600    +0.850    +1.180        Total  (+0.850mm

Kimberlite      -0.600    -0.850    -1.180    -1.700     Diamonds      size)

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Q1                   2         1         0         0           38          0

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Q2                   8         2         0         1          253       0.05

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The diamond in the Q2 sample that is larger than the 1.180 mm sieve size is classified by the SRC as a 0.05 carat white/colourless, transparent distorted crystal.

Mr. Eric Friedland, CEO of Peregrine stated, "The discovery of two diamondiferous kimberlites at Qilaq in the second year of exploration on the Project is remarkable, particularly since they were made without the benefit of drilling. Our team is looking forward to advancing exploration on this exciting project in 2011, utilizing the results from the 2010 sampling programme. We are confident that more diamondiferous kimberlites will be discovered at Qilaq."

Q1 and Q2 KIMBERLITES

The Q1 kimberlite is characterized by a magnetic high anomaly with an estimated diameter of 150 metres, associated with a topographic depression that measures approximately 60 metres by 50 metres. The 62.7 kilogram sample represented all the competent kimberlite that could be readily located on the surface within the anomaly. The Q2 kimberlite is located approximately four kilometres south of the Q1 kimberlite and outside of the limits of the 2010 airborne geophysical survey. Two kimberlite outcrops, and numerous cobbles and boulders, were discovered within a surface depression that is more than 80 metres in diameter.

Qilaq is 100 percent-owned by Peregrine and is not encumbered by any third party earn-in or back-in rights other than a one kilometre buffer zone within Qilaq along the boundary of Chidliak which is subject to BHP Billiton's earn-in rights at Chidliak. Both Q1 and Q2 are outside of this buffer zone.

Images from Qilaq are available on Peregrine's web-site at http://www.pdiam.com/i/pdf/qilaq914.pdf.

2010 QILAQ EXPLORATION PROGRAMME SUMMARY

The 2010 Qilaq exploration programme was completed on September 4, and included the following work:

--  Two kimberlites, Q1 and Q2, were discovered by prospecting. The

    discovery of Q1 and Q2 was reported by news release on August 5, 2010. 

    

--  A 670 line kilometre airborne geophysical survey was completed in May. 

    

--  387 KIM samples were collected. 

    

--  23 metals anomalies, identified in 2009, were evaluated by prospecting,

    mapping and sampling and 476 soil samples and 120 rock samples were

    collected and submitted for analysis. 

    

Peregrine is currently planning for a 2011 exploration programme at Qilaq, which could include airborne and ground geophysics, drilling of new targets, drilling of Q1 and Q2 in order to estimate their potential size and to obtain a larger sample for diamond testing, KIM sampling, prospecting and the continued evaluation of metals anomalies.

The SRC is an independent laboratory that is accredited by the Standards Council of Canada to the ISO/IEC Guide 25 standard for diamond recovery by caustic fusion. The kimberlite samples were collected, sealed in secure containers and shipped to the SRC under strict chain of custody protocols supervised by senior Peregrine personnel.

Mr. Peter Holmes, P. Geo., Peregrine's Vice President, Exploration, is a Qualified Person under NI 43-101 and is responsible for the design and conduct of the programs carried out by the Company on the Qilaq project. Mr. Holmes has reviewed this release and approves of its contents.