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VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 3, 2010) - Peregrine Diamonds Ltd. ("Peregrine" or "the Company") (TSX:PGD) is pleased to announce that drilling of the diamond-bearing NQN-001 kimberlite has commenced at the Nanuq North project ("Nanuq North") in Nunavut, Canada. Discovered in 2008, NQN-001 is located approximately 275 kilometres north of the community of Rankin Inlet, and two kilometres north of Peregrine's wholly-owned 315,000 hectare Nanuq project ("Nanuq").

The first drill hole of the 1,000 metre, five-hole drilling program at NQN-001, is now complete. The vertical hole was drilled from the interpreted centre of the body and kimberlite was intersected continuously from 13.9 to 257 metres, where the hole was terminated in kimberlite at a pre-determined depth. Four angle holes, oriented at right angles to each other, will now be drilled from the interpreted centre of the kimberlite to provide more information on its size, geologic composition and diamond distribution. Approximately 3.5 tonnes of kimberlitic material is planned to be recovered during this programme. Upon completion of the NQN-001 drilling, the drill rig will be moved to Nanuq to commence target drilling in July.

Nanuq North Background Information
The NQN-001 kimberlite is currently interpreted as having a surface area of 4.5 hectares with two phases of kimberlite having distinctly different diamond contents. In 2009, a total of 206 diamonds larger than 0.075 mm was recovered from a 153 kg sample of the kimberlite, with 94 of those diamonds being recovered from a 27 kilogram sample of one phase. The largest stone measured 0.98 mm x 0.72 mm x 0.70 mm. The majority of the diamonds described are characterized as white/colorless with no inclusions. A map showing the project's location, photos of the drilling program, and the diamond results for the NQN-001 kimberlite, released on February 10, 2009, are available at [ www.pdiam.com/i/pdf/nanuqnorth731.pdf ].

Exploration expenditures on the 33,100 hectare Nanuq North property are currently funded on a 50/50 basis by Peregrine and Indicator Minerals Inc. ("Indicator"). Indicator is the operator of the programme. Equipment, infrastructure and personnel from Peregrine and Nanuq are being utilized to support the drilling.

Mr. Bruce Counts, P.Geoph., President & CEO of Indicator, is a Qualified Person under NI 43-101 and is responsible for the design and execution of the programmes carried out by Indicator at Nanuq North. Mr. Counts is independent of Peregrine.

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 risks, 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.