Peregrine Announces New Kimberlite Discovery at Nanuq North, Nunavut

Peregrine Diamonds Ltd. announce the discovery of a new kimberlite, estimated at 4.5 hectares in size, on the 33,000 hectare Nanuq North property in Nunavut, Canada. Nanuq North is situated just north of Peregrine’s wholly-owned Nanuq property (“Nanuq”) where the company discovered three diamondiferous kimberlites in 2007. Peregrine has recently staked 114 new mineral claims at Nanuq increasing the size of the property from 201,000 to 314,000 hectares.

Nanuq North Kimberlite Discovery

Kimberlite NQN-001 was discovered during a short, late season percussion drilling campaign. The discovery hole, inclined at -58 degrees, was terminated in kimberlite after a continuous 80 metre kimberlite intersection beginning at seven metres and ending at 87 metres of depth. Based on ground geophysical data, NQN-001 is interpreted as having a minimum surface area of 4.5 hectares. A representative 150 kilogram sample of drill cuttings collected from the kimberlite has been sent to Saskatchewan Research Council Geoanalytical Laboratories for diamond analysis.

Numerous untested geophysical targets and multiple kimberlite indicator mineral trains have been identified at Nanuq North and planning for an aggressive 2009 exploration program, which will include drilling, is in progress.

Exploration expenditures on the 33,100 hectare Nanuq North property are currently funded on a 50/50 basis by Peregrine and Indicator Minerals Inc. (“Indicator”). Under the terms of a letter agreement, the Hunter Exploration Group (“Hunter”) retains a 20 percent interest and Peregrine and Indicator each retain 40 percent interests in 16 claims covering 13,900 hectares, including the claim that hosts NQN-001. Hunter’s 20 percent interest is carried through completion of a scoping study. Peregrine and Indicator each have an undivided 50 percent interest in the remaining 19,200 hectares of claims at Nanuq North. Indicator is the operator of the project.

Update on Peregrine’s 100%-owned Nanuq Property

The new kimberlite discovery at Nanuq North, situated just north of Peregrine’s wholly-owned Nanuq property, expands the size of the known kimberlite field to four kimberlites. In 2007 the Company discovered three kimberlites at Nanuq approximately 17 kilometres south of NQN-001. All three of these kimberlites returned encouraging diamond results, and two of them, Kayuu and Natuarlik, have estimated surface areas of five and seven hectares respectively. The best diamond counts were from the Tudlik kimberlite where an 89 kilogram sample yielded 112 diamonds larger than the 0.075 mm sieve size, including two diamonds larger than the 0.6 mm sieve size.

This summer, the size of the Nanuq property was increased from 201,000 to 314,000 hectares, strengthening the company’s dominant land position in this new Canadian diamond district. In addition, ground geophysical surveys were completed over high priority targets.

Peregrine management is confident that additional kimberlites will be discovered at Nanuq, as numerous geophysical anomalies have been identified, many with associated kimberlite indicator mineral trains. Peregrine is currently planning a 2009 exploration program that will include heavy mineral sampling, ground geophysics and the drilling of high priority targets.