Mr. Eric Friedland, Chief Executive Officer, and Mr. Brooke Clements, President of Peregrine Diamonds Ltd. ("Peregrine" or "the Company") (TSX: PGD) are pleased to report that a 2009 diamond exploration programme with a budget of $9.2 million has been approved for the 9,800 square kilometre Chidliak property ("Chidliak" or "the Property"), Baffin Island, Nunavut, Canada.

Peregrine will be the operator of the exploration programme which will be fully funded by BHP Billiton.

As announced on November 24, 2008, BHP Billiton has elected to exercise its earn-in rights for Chidliak and under the terms of the earn-in agreement must incur a total of $22.3 million dollars in exploration expenditures in order to earn a 51% interest in the Property, with a minimum commitment of $8.9 million in exploration expenditures or cash payments in lieu to Peregrine. Upon successful completion of the earn-in, BHP Billiton will have a one-time election to earn an additional seven percent interest by delivering a fully engineered, bankable feasibility study on the Property.