Peregrine Diamonds Ltd.: Diamondiferous Kimberlites Discovered at Nanuq, Nunavut

Peregrine has been exploring at Nanuq for the last two years,taking 1,692 heavy mineral samples and completing more than14,000 line-kilometres of airborne and ground geophysicalsurveys. During the summer of 2007, Peregrine began itsfirst core drilling campaign at Nanuq targeting three distinctmagnetic anomalies, resulting in the discovery of threediamondiferous kimberlite pipes. Twelve core holes totaling2,500 metres, drilled in a combination of angled and verticalorientations, were completed on the three kimberlites withkimberlite intersections ranging from 59 to 248 metres inlength. With at least 10 additional magnetic anomalies currentlyidentified on the property, Peregrine is confident thatadditional kimberlites will likely be discovered at Nanuqwhen drilling resumes next year.

Two of the three kimberlites discovered at Nanuq to dateare among the largest diamondiferous kimberlites yet discoveredin the eastern Arctic of Canada.

A total of approximately 1,632 kilograms of kimberlite fromthe three pipes, named Naturalik, Kayuu, and Tudlik, weresent to the Saskatchewan Research Council GeoanalyticalLaboratories (SRC), which is accredited to the ISO/IEC 17025standard, for microdiamond recovery via caustic fusion.As of today's date, microdiamond results from 1,318.85 kilogramsof kimberlite have been received and are summarized below.

 Number of Diamonds per Sieve Size---------------------------------------------------------------------------            Sample                Wt.  1.18  .85  .60 .425  .30 .212  .15 .106 .075     TotalKimberlite     (kg.)   mm   mm   mm   mm   mm   mm   mm   mm   mm  Diamonds---------------------------------------------------------------------------Naturalik   705.85      0    2    1    6   17   41   57   82  108       314Kayuu       524.05      1    0    1   22   22   41   87  106  113       393Tudlik       88.95      0    0    2    5   12   10   29   17   37       112

Microdiamond results from the approximately 314 kilogramsof kimberlite currently outstanding, which are all fromthe Kayuu kimberlite pipe, are expected from SRC by theend of this month. Considering the relatively small samplesizes, Peregrine is very encouraged by these micro-diamondresults.

Naturalik (which means Eagle in Inuktitut), is estimatedto be over seven hectares in size and is described as amultiphase pipe-shaped body in-filled by two magmatic kimberliteunits and a variably fragmented volcaniclastic kimberliteunit.

Kayuu (which means Hawk in Inuktitut), is located approximatelyfive kilometres west of Naturalik and is estimated to beapproximately five hectares in size with complex internalgeology. Kayuu is described as a pipe-shaped body in-filledby six volcaniclastic kimberlite units and one variablevolcaniclastic to apparent magmatic kimberlite unit.

Tudlik (which means Sandpiper in Inuktitut), is locatedapproximately 300 metres southwest of Kayuu. Tudlik is smallerthan Naturalik and Kayuu, at less than 1.0 hectare in size,and was intersected with only a single drill hole. The kimberliterecovered is described as a volcaniclastic unit, generallymassive, fine-grained and moderately macrocrystic with alow abundance of mantle indicator minerals and country rockxenoliths.

The detailed geological analysis was conducted by MineralServices Canada Inc., in conjunction with Peregrine's geologicalstaff.

Peregrine plans to continue its aggressive exploration ofNanuq next year using a combination of ground geophysics,followed by core drilling of the most prospective anomalies.Next season's program will also include PQ diameter coredrilling (85 mm, outside diameter) of the three known diamondiferouskimberlites in order to obtain larger samples for macro-diamondanalysis.

Jennifer Pell, Ph.D., P.Geo., Chief Geoscientist for PeregrineDiamonds Ltd., is the Qualified Person under NI 43-101 inregards to Peregrine's Canadian diamond exploration projects.

Peregrine is a Canadian diamond exploration/developmentcompany that is managed by experienced geoscientists. Inaddition to completing a Preliminary Technical Assessmenton the nine hectare DO-27 kimberlite, WO Diamond Project,NT, Peregrine is also exploring for other diamondiferouskimberlites on its extensive land holdings in Canada. Peregrinetrades on the Toronto Stock Exchange under the symbol "PGD".

Forward-Looking Statements: This document includes forward-lookingstatements. Forward-looking statements include, but arenot limited to statements concerning Peregrine's projects,pre-feasibility studies, and other statements that are nothistorical facts. When used in this document, the wordssuch as "could", "confident", "plan", "estimate", "expect","anticipated", "intend", "likely", "may", "potential", "should","scheduled", "significant", and similar expressions areforward-looking statements. Although Peregrine DiamondsLtd. believes that its expectations reflected in these forward-lookingstatements are reasonable, such statements involve riskand uncertainties and no assurance can be given that actualresults will be consistent with these forward-looking statements.Important factors that could cause actual results to differfrom these forward-looking statements are disclosed in thecorporation's periodic filings with Canadian regulators.