Peregrine Diamonds Ltd.: Nanuq North Arbitration Now Scheduled for May, 2010

Under the arbitration, Peregrine sought a determination that Peregrine's approval was required to proceed with the proposed 2009 programme, that Indicator's notice to Peregrine to contribute its share of the programme expenditures was not validly issued and an order restraining Indicator from acting on the notice and diluting Peregrine's interest in the Nanuq North joint venture.

Subsequently, Indicator did not proceed with implementing the proposed programme and Indicator and Hunter each launched a counterclaim against the Company claiming that the letter of intent entered into by the Company, Indicator and Hunter in May, 2005 is unenforceable. Peregrine's position is that the 2005 letter of intent is an enforceable agreement and governs all exploration work conducted on the Nanuq North property. In 2008, Peregrine and Indicator, with Indicator as operator, successfully completed a two phase exploration programme on the Core Claims that included an airborne geophysical survey and ground geophysics followed by a reverse circulation drilling programme. The diamondiferous NQN-001 kimberlite, with an estimated size of 4.5 hectares, was discovered during the reverse circulation drilling programme. This exploration work was completed under the letter of intent and total exploration expenditures incurred by Peregrine and Indicator on a 50/50 basis were $685,000.

Peregrine looks forward to resolution of the dispute with Indicator and Hunter in 2010 so that exploration work can resume in a systematic, cost-effective manner at Nanuq North.

A 2010 drill programme is currently being planned for Peregrine's 100% owned, 314,000 hectare, Nanuq Project ("Nanuq") which is located immediately adjacent to Nanuq North. The Company discovered three diamond-bearing kimberlites at Nanuq in 2007 after drilling only three geophysical anomalies. In 2009, Peregrine collected 1,300 indicator mineral samples at Nanuq in preparation for the 2010 drill programme. More comprehensive details of the up-coming 2010 Nanuq exploration programme will be provided as they become available.

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, joint venture participation, and future exploration and operating plans) are forward-looking statements. 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. Factors that could cause actual results or events to differ materially from current expectations include, among other things, uncertainties relating to existing and future joint venture interests, the availability and cost of funds, timing and content of work programmes, results of exploration activities, reliability of mineral property titles, and any changing budget priorities. Any forward-looking statement speaks only as of the date on which it is made.