NANUQ & NANUQ NORTH

Peregrine Diamonds announced the completion of the 2010 field program on its wholly-owned 315,000 hectare Nanuq project, located approximately 300 kilometres north of Rankin Inlet in Nunavut, Canada. A total of 1,550 line kilometres of ground magnetic and electromagnetic surveys were conducted over priority geophysical anomalies that were selected from previously completed airborne surveys. Three holes were drilled into three targets, for a total of 492 metres, without intersecting kimberlite. In addition, 495 KIM samples were collected as a follow-up to KIM anomalies identified from previous exploration work and to further assess additional geophysical anomalies. In addition, the company has completed the 2010 field program on its wholly-owned 1.5 million hectare Cumberland project, located northeast of Pangnirtung on Baffin Island, Nunavut. During July and August, 2010, Peregrine conducted a reconnaissance sediment sampling programme to evaluate Cumberland’s diamond and metals potential. A total of 337 KIM samples was collected during the programme. The results from these samples will determine the nature and scope of future exploration programmes.

Peregrine Diamonds reported on diamond exploration activities that were underway at their Nunavut, Canada properties. The company commenced in the second week of March 2010 the spring phase of a $13.5 million, 2010 diamond exploration programme on the 9,800 square kilometre Chidliak project located on the Baffin Island. It has also initiated a $3.5 million 2010 diamond exploration programme on its wholly-owned 315,000 hectare Nanuq project. On April 30, 2010 the company, Indicator Minerals Inc. and Hunter Exploration Inc. reached an agreement to adjourn arbitration hearings that had been scheduled to commence on May 7, 2010 so that a formal joint venture agreement can be completed on the Nanuq North project. The company and Indicator also agreed to conduct a $2.0 million exploration program during 2010 at Nanuq North.

Peregrine Diamonds announced that Peregrine Diamonds and Indicator Minerals have agreed to immediately conduct a CAN$2.0 million exploration program this year at the Nanuq North project, Nunavut, Canada. In addition, Peregrine Diamonds and Indicator Minerals reached an agreement to adjourn arbitration hearings that had been scheduled to commence on May 7, 2010 so that a formal joint venture agreement can be completed. Nanuq North is located immediately to the north of, and is distinct from, Peregrine’s 100% owned Nanuq project.