Peregrine Discovers Strong and Large Scale Uranium Anomalies on Baffin Island

Mr. Brooke Clements, President and Mr. Eric Friedland, Chief Executive Officer of Peregrine Diamonds Ltd. ("Peregrine" or "the Company") (TSX: PGD) are pleased to report that the Company has discovered strong, large scale uranium anomalies that were identified as a result of Peregrine’s on-going diamond exploration programs on Baffin Island, Nunavut, Canada.

On February 1st, 2008, the Nunavut Mining Recorder approved Peregrine’s application for 76 prospecting permits, totalling over 1.3 million hectares (13,000 km2), on Baffin Island. Most of the permits are situated in two new areas, Flint Lake and Kimmirut, where the strong uranium anomalies were discovered. The remainder of the permits acquired are peripheral to Peregrine’s existing Chidliak property, where diamond, nickel, copper, zinc, and platinum/palladium anomalies have been identified by the Company.

The Flint Lake and Kimmirut permits cover areas where highly anomalous concentrations of the uranium-bearing mineral uraninite-thorianite were recovered from till samples collected by the Company in 2007. Uraninite is the principal ore mineral in most uranium mines throughout the world. Thorianite is the thorium analog of uraninite. Uraninite-thorianite is a mineral having varying proportions of uranium and thorium.

On Flint Lake and Kimmirut, 418 of the 495 total till samples collected and analyzed, or 84%, had uraninite-thorianite mineral grain counts of 5 grains or more which is considered anomalous. A total of 156 samples had grain counts of 100 or more per sample, 24 samples had 500 grains or more per sample and one sample contained an estimated 20,000 grains. A uraninite-thorianite mineral grain is a physical piece of uraninite-thorianite that is greater than 0.025 mm in size.

All of the till samples collected from the Flint Lake and Kimmirut properties in 2007 were sent to Overburden Drilling Management ("ODM") in Nepean, Ontario for metamorphic or magmatic massive sulfide indicator mineral analyses. ODM is an internationally recognized laboratory specializing in identifying indicator minerals associated with uranium and other metallic ore deposits. Stuart Averill, President of ODM, stated, "We have been observing sediment samples from many parts of the world since 1976. In our experience it is rare to observe uraninite-thorianite in heavy mineral concentrates. The high counts observed in the Peregrine samples are exceptional."

A map showing Peregrine’s complete 2.7 million hectare land position on Baffin Island is available at www.pdiam.com/i/maps/NA/BaffinProperties.jpg.

Flint Lake Property

The 300,000 hectare Flint Lake property is located approximately 600 kilometres northwest of Iqaluit on west-central Baffin Island. A total of 124 of 195 till samples collected on the property contained 5 or more grains of uraninite-thorianite, 45 of these samples contained over 100 grains or more and 17 had 500 grains or more. A well-defined uraninite-thorianite anomaly covers an area of 15 km by 20 km. Fourteen of the 16 samples collected within this anomalous area contained 200 or more uraninite-thorianite grains each and ten contained 1,000 or more grains each, including the sample with 20,000 grains.

Pyrite, chalcopyrite and gold grains were also recovered from several samples in the anomalous uranium area. An iron oxide copper gold (IOCG) deposit that contains uranium, such as BHP Billiton’s world-class Olympic Dam Mine in Australia, is a potential exploration target at Flint Lake.

Kimmirut Property

The 655,000 hectare Kimmirut property is located on southern Baffin Island, approximately 80 kilometres southwest of Iqaluit. A total of 294 of 300 till samples from the property, or 98%, contained five or more grains of uraninite-thorianite, 111 of these samples contained 100 grains or more and seven had 500 grains or more. A well-defined uraninite-thorianite anomaly covers an area of 5 km by 20 km. All of the 13 samples collected within this area contained between 200 and 3,000 mineral grains, with five containing 1,000 or more grains each. Results are pending for 90 additional till samples collected from the Kimmirut property in 2007.

Potential uranium deposits on the Kimmirut property could be related to unconformities between Archean gneisses and Proterozoic granites and an overlying Proterozoic meta-sedimentary unit, or to a magmatic source.

Chidliak property

New permits were also added to the existing Chidliak property on southern Baffin Island, which now totals 980,000 hectares. Exploration targets on the Chidliak property include diamond, nickel, copper, zinc and platinum/palladium. Results from the 2007 sampling campaign will be released shortly.

2008 Work

Peregrine is highly encouraged by the definition of the uranium anomalies on the Flint Lake and Kimmirut properties. The belt of ancient rocks in south-central Baffin Island is known for its high exploration potential for uranium, copper-zinc-gold massive sulfide, and IOCG deposits. Baffin Island is an underexplored region of Canada and the potential to discover large ore deposits is considered very good. The last significant exploration for uranium on Baffin Island occurred in the 1960′s when the main instrumentation used was a hand-held Geiger counter. This work predated modern geology maps and modern airborne radiometric surveys have not been previously carried out in this area.

Dr. David Lentz, Economic Geology Chairman of the Ore Research and Exploration Group at the University of New Brunswick, has been retained to advise Peregrine on its Baffin Island metals projects. Dr. Lentz stated that the uraninite-thorianite anomalies observed are very significant and has recommended detailed follow up work in certain key areas with coincident mineral anomalies and favourable geology. Peregrine’s goal for 2008 is to locate the bedrock source for the uraninite-throrianite grains. The aggressive summer exploration program for the Flint Lake and Kimmirut properties will include geological mapping, prospecting, ground scintollometer surveys, geochemical and indicator mineral sampling, and possible drilling. An airborne radiometric/magnetic/EM survey is also under consideration for the Kimmirut property.

Alliance with BHP Billiton

The properties described in this release are owned 100% by Peregrine, subject to certain back-in rights held by BHP Billiton. After Peregrine has incurred a minimum of $3,000,000 and up to $10,000,000 of expenditures on a property, BHP Billiton has a one-time option to elect to acquire a 51% interest in the property by sole-funding five times the exploration expenditures that have been incurred ($15 million to $50 million). BHP Billiton has the right to earn an additional seven percent interest by sole-funding the complete costs of a bankable feasibility study. If this option is exercised, the resulting ownership interests in any potential mine would be BHP Billiton 58% and Peregrine 42%.

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 Baffin Island.

Forward-Looking Statements: This document includes forward-looking statements. Forward-looking statements include, but are not limited to statements concerning Peregrine’s projects, pre-feasibility studies, and other statements that are not historical facts. When used in this document, the words such as "could", "confident", "plan", "estimate", "expect", "anticipated", "intend", "likely", "may", "potential", "should", "scheduled", "significant", and similar expressions are forward-looking statements. Although Peregrine Diamonds Ltd. believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risk and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements are disclosed in the corporation’s periodic filings with Canadian regulators.

 Contacts: Peregrine Diamonds Ltd. Brooke Clements President (604) 408-8880  Peregrine Diamonds Ltd. Eric Friedland CEO (604) 408-8880  Peregrine Diamonds Ltd. Investor Relations (604) 408-8880 (604) 408-8881 (FAX) Email: investorrelations@pdiam.com Website: www.peregrinediamonds.com

SOURCE: Peregrine Diamonds Ltd.