======================================================================= Re: Press Releases - Thursday, March 01, 2012 Peregrine Commences Lac De Gras Diamond Exploration Program ======================================================================= Peregrine Diamonds Ltd.

("Peregrine" or "the Company") (TSX:PGD) has commenced a $1.5 million diamond exploration program in the Lac de Gras region of the Northwest Territories, Canada, approximately 300 kilometres northeast of Yellowknife.

The program will include ground geophysical surveying and the drilling of high-priority kimberlite targets.

Lac de Gras is one of the most prolific diamond districts in the world, hosting the Diavik and EKATI diamond mines and Peregrines 71.9%-owned, nine hectare DO-27 kimberlite, which currently has an 18.2 million carat resource that is open at depth.

As part of this program, the Company will re-value diamonds previously recovered from DO-27 as a component of an analysis of the current economics of this large kimberlite pipe.

2012 Exploration Program The exploration program fieldwork has commenced.

Mobilisation of the diamond core drill is underway and drilling will commence in early March.

Currently eight geophysical targets between one and two hectares in size, with associated kimberlite indicator minerals, are drill-ready.

Ground magnetic and electromagnetic geophysical surveys will be completed over 15 anomalies and additional priority drill targets that are expected to be defined by these surveys will also be tested.

It is anticipated that drilling will be completed by early May.

The Lac de Gras projects consist of 51,000 hectares of claims 100%-owned by Peregrine, 36,400 hectares of claims in joint venture with Thelon Capital Ltd.

(66.2% Peregrine, 33.8% Thelon) and the 15,107 hectare WO Joint Venture (Peregrine 71.9%, Archon Minerals Ltd.

17.5% and DHK Diamonds Inc.

10.6%).

Peregrine holds 97.92% of diamond marketing rights for the WO Joint Venture.

The DO-27 kimberlite is located within the WO Joint Venture.

The discovery of a new kimberlite with economic potential on Peregrines Lac de Gras projects could significantly enhance the value of the DO-27 resource. DO-27 The DO-27 diamond deposit is located 27 kilometres from the Diavik Diamond Mine and 56 kilometres from the EKATI Diamond Mine.

On June 24, 2008, Peregrine reported a NI 43-101 compliant indicated mineral resource for DO-27 of 18.2 million carats in 19.5 million tonnes of kimberlite at a grade of 0.94 carats per tonne.

Also, a potential mineral deposit of an additional 6.5 to 8.5 million tonnes of kimberlite at depth was identified.

Since that time, rough diamond prices have increased significantly, a trend that is expected to continue due to increasing global demand for diamonds, particularly in Asia.

In light of this, Peregrine will commission a new independent valuation of diamonds recovered from DO-27.

As reported on December 17, 2007, the modelled diamond value from WWW International Diamond Consultants Ltd.

("WWW") for a 2,075 carat parcel from DO-27 ranged from US $43 to $70 per carat, with a base case of US $51 per carat. Images of some of the new targets, as well as photos of the DO-27 diamonds, are available on Peregrines web-site at www.pdiam.com/i/pdf/LacdeGras621.pdf Mr.

Peter Holmes, P.

Geo., Peregrines Exploration Manager, is a Qualified Person under NI 43-101 and is responsible for the design and conduct of the exploration programs carried out by the Company on the Lac de Gras project.

Mr.

Holmes has reviewed this release and approves of its contents. Dr.

Jennifer Pell, Ph.D., P.Geo., Peregrines Chief Geoscientist, is a Qualified Person under NI 43-101 and monitored the DO-27 diamond valuation by WWW in Antwerp, Belgium for Peregrine.

Dr.

Pell has reviewed this release and approves of its contents. For further information, please contact Mr.

Eric Friedland, CEO, Mr. Brooke Clements, President, Mr.

Mike Westerlund, Vice President, Investor Relations and Corporate Communications or Peregrine Diamonds Investor Relations, at 604-408-8880 or at . 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 Companys 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. Associated File: http://www.pdiam.com/i/pdf/2012-03-01_NR.pdf 27 KB in size, approx.

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