Peregrine Provides Project Update and Discovers 61st Kimberlite at Chidliak

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 08/14/12 -- Peregrine Diamonds Ltd. ("Peregrine" or "the Company") (TSX: PGD) is pleased to provide an update on the Chidliak diamond project ("Chidliak" or "the Project") located on Baffin Island, Nunavut, Canada.

During the summer exploration program, a total of 2,378 metres of core drilling was completed on the CH-1, CH-7 and CH-44 kimberlites, bringing the total metres of core drilling completed to date on the three bodies to 1,106, 2,992 and 1,881, respectively. CH-1, CH-7, CH-44 and CH-6 are four kimberlites with economic potential at Chidliak that are at the bulk sample stage of economic evaluation. Between 2009 and 2011, 4,700 metres of core drilling was completed at CH-6. Information from the core drilling will be used to refine the geologic models of these kimberlites and to better establish the diamond size distribution of the various kimberlite units in preparation for future bulk sampling.

In addition, over 720 line-kilometres of ground magnetometer surveys were completed, 131 man-days were devoted to prospecting and mapping and 402 kimberlite indicator mineral samples were collected. A total of 20 overburden profile holes has been drilled at the CH-6 kimberlite with a heli-portable reverse circulation ("RC") drill and the 2012 field program will conclude after overburden profile holes have been drilled at the CH-7 and CH-31 kimberlites. These overburden profile holes will assist with planning for the potential future collection of bulk samples from these kimberlites by trenching. Approximately 20 kimberlite targets were generated from the 2012 prospecting and ground geophysical surveying programs. Testing of these targets by RC drilling, originally planned for this year, has been deferred to a future program.

BULK SAMPLING PROGRAM

The planned 2013 bulk sampling program is currently postponed. Cooper Drilling LLC is nearing completion of modifications to the large diameter RC drill rig to be used in a future bulk sampling program at Chidliak. Current planning is for the rig to be thoroughly tested, and then stored for use at a later date.

CORPORATE INITIATIVES

The Company is in active discussions regarding corporate and financing options and will provide further updates.

DISCOVERY OF CH-61

CH-61, located approximately 20 kilometres southeast of the CH-7 kimberlite, is defined by a complex magnetic anomaly with an estimated surface expression of 2.4 hectares. The prospecting crew discovered kimberlite float and green clay soil containing limestone fragments coincident with the anomaly. CH-61 will be evaluated by drilling in a future program.

Mr. Alan O'Connor, Professional Geologist, Peregrine's Chidliak Project Manager, is a Qualified Person under National Instrument 43-101 and is responsible for the design and conduct of the programs carried out by the Company at Chidliak. Mr. O'Connor has reviewed this release and approves of its contents.

About Peregrine Diamonds Ltd.

Peregrine Diamonds Ltd. is a diamond exploration and development company focussed on Canada's North. Peregrine has discovered two new diamond districts in Nunavut, Nanuq in 2007 and Chidliak in 2008. At the DO-27 kimberlite in the Northwest Territories, located 27 kilometres from the Diavik Diamond Mine, a NI 43-101 compliant mineral resource of 18.2 million carats in 19.5 million tonnes of kimberlite at a grade of 0.94 carats per tonne, which is open at depth, was confirmed in 2008. At its 100%-owned Chidliak project, located 120 kilometres from Iqaluit, the capital of Nunavut, the Company has discovered 61 kimberlites to date and four of the pipes are currently at the bulk sample stage. Peregrine also continues to evaluate earlier stage diamond exploration projects it controls in Nunavut and the Northwest Territories.

Forward-Looking Statements: This news release contains forward-looking statements. All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements relating to the proposed exploration programme, funding availability, anticipated exploration results, resource estimates and future exploration and operating plans are forward-looking statements. These forward-looking statements reflect the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements and, even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things, uncertainties relating to the availability and cost of funds, timing and content of work programmes, results of exploration activities, interpretation of drilling results and other geological data, world diamond markets, future diamond prices, reliability of mineral property titles, changes to regulations affecting the Company's activities, delays in obtaining or failure to obtain required project approvals, operational and infrastructure risk and other risks involved in the diamond exploration business. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to their inherent uncertainty.

Contacts:

Peregrine Diamonds Ltd.

Mr. Eric Friedland

CEO

604-408-8880


Peregrine Diamonds Ltd.

Mr. Brooke Clements

President

604-408-8880


Peregrine Diamonds Ltd.

Mr. Tom Peregoodoff

Executive VP, Business Development

604-408-8880


Peregrine Diamonds Ltd.

Mr. Mike Westerlund

VP, Investor Relations and Corporate Communications

604-408-8880


Peregrine Diamonds Ltd.

Investor Relations

604-408-8880

604-408-8881 (FAX)
investorrelations@pdiam.com
www.pdiam.com