Peregrine Metals Ltd.: Newly Discovered Near Surface Copper Mineralization at Altar Extends Deposit 300 Metres Southeast; Bottom 16 Metres of Hole Ret

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 3, 2011) - Peregrine Metals Ltd. (TSX:PGM) ("Peregrine" or "the Company") is pleased to report new assay results from angle drill hole ALD-148 completed last month at the large Altar porphyry copper-gold deposit ("Altar") in San Juan Province, Argentina. ALD-148 was drilled 300 metres to the southeast of the previously drilled ALD-37, which at that time marked the easternmost extent of drilling at Altar. The sulphides in hole ALD-148 begin at 18 metres, and copper ("Cu") and gold ("Au") mineralization show an increasing trend with depth, ending in 0.728% Cu and 0.224 g/t in the bottom 16 metres of the 450 metre angled hole, reinforcing the depth potential of this project.

Highlights of ALD-148 include:

This mineralization occurs outside the eastern extents of prior resource drilling at the transition between the porphyry Cu system and the overlying epithermal Au system that is exposed on the ridge tops to the east of Altar's East Zone.

A new hydrothermal breccia was encountered that is very intensely developed below about 200 metres. This could be a separate mineralizing event heretofore unobserved at Altar hosted within the southeast quadrant of the Altar alteration system and induced polarization ("IP") anomaly. This sector of the deposit has not been delineated by drilling and remains open to resource expansion.

Sulphides start at 18 metres depth in the hole, potentially positively affecting the stripping ratio at Altar.

The Cu and Au grades, the abundance of bornite, the intensity of hydrothermal brecciation, and the intensity of alteration all increase with depth in the hole, suggesting that the copper and gold mineralization may continue to depth. The Company plans to extend this hole during the fourth quarter as part of a comprehensive deep-drilling programme that will be the subject of a future release.

A summary of drill results from ALD-148 is provided in the table below. These results, as well as select previously released drill intersections, can be viewed on a map at www.pmet.com/i/pdf/Altar869.pdf.

SUMMARY OF ALTAR DRILL HOLE ALD-148 RESULTS

Reported intersections begin directly beneath the leached capping.

Mr. Jeff Toohey, Peregrine Metals' Vice President, Exploration, said, "With this hole we believe we have drilled into a new mineralizing event at Altar, and this is a significant discovery. Not only has hole ALD-148 extended the known mineralization of Altar another 300 metres to the southeast, significantly increasing the potential size of the deposit, but the mineralization begins near surface, which could positively affect the pre-stripping assumptions in the current mine model. Also, the mineralization strengthens at depth, with the bottom 16 metres of the drill hole grading 0.728% Cu and 0.224 grams/tonne gold, highlighting the depth potential at Altar which we will begin to further investigate later this year."

ALTAR BACKGROUND INFORMATION

Altar is a large Andean-style porphyry copper-gold deposit. The alteration zone encompasses an area measuring over three by two kilometres with a strong, coincident IP geophysical anomaly of approximately the same size. A total of 149 core holes has been drilled at Altar for 58,596 metres. The Company is currently conducting a preliminary economic assessment of the Altar project, with completion expected during the third quarter of 2011.

All of the Altar drill core was sampled in continuous two-metre intervals, with half of the core submitted for assay and the other half archived in the Company's secure storage facility. Drill core samples were prepared and assayed by Acme Analytical Laboratories, at their facilities in Mendoza, Argentina and Santiago, Chile as well as by Alex Stewart (Assayers) Argentina S.A., located in Mendoza, Argentina. Copper values are determined by multi-element Induced Coupled Plasma and Atomic Absorption methods.

Peregrine has a comprehensive and rigorous quality assurance/quality control ("QA/QC") programme in place that employs certified assay standards, blanks and core duplicates, as well as routine check assays at a separate secondary laboratory. The QA/QC programme also extends to the metallurgical test-work.

Peregrine holds a 100% interest in the Altar project subject to a 1% NSR royalty granted to Rio Tinto and another 1% NSR royalty granted to the underlying concession owner that may be purchased by the Company at any time for US $1 million.

Mr. Jeff Toohey, M.Sc., P.Eng., Vice President, Exploration for the Company, is a Qualified Person as defined by NI 43-101 and is responsible for the design and implementation of the exploration work being carried out by the Company at the Altar Project. Mr. Toohey has reviewed this press release and approves of its content.

Cautionary Note Regarding Forward-Looking Statements

This news release contains "forward-looking statements" within the meaning of applicable Canadian securities legislation. Such forward-looking statements concern the Company's anticipated results and developments in the Company's operations in future periods, planned exploration and development of its properties, planned expenditures and plans related to its business, mineral resource estimates and other matters that may occur in the future. These statements relate to analyses and other information that are based on expectations of future performance and planned work programmes.

The Company has made a number of assumptions with respect to, among other things, the price of copper and other metals, economic and political conditions, and continuity of operations. Although the Company believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that forward-looking statements will prove to be accurate.

Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors which could cause actual events or results to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, risks related to the following: fluctuations in mineral prices; the Company's dependence on one mineral project; the nature of mineral exploration and mining and the uncertain commercial viability of certain mineral deposits; the re-allocation of the proposed uses of the net proceeds of the offering and the private placement; the Company's lack of operating revenues; uncertainty in the Company's ability to obtain necessary financing to fund the development of its mineral properties or the completion of further exploration programmes; the Company's principal property being located in Argentina, including political, economic, and regulatory instability; governmental regulations and obtaining necessary licenses and permits; the Company's mineral properties being subject to prior unregistered agreements, transfers, or claims and other defects in title; fluctuations in the currency markets (particularly the Argentina peso, Canadian dollar and United States dollar); the business being subject to environmental laws and regulations which may increase costs of doing business and restrict the Company's operations; and the Company's dependence on key personnel.

Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the forward-looking statements. The Company's forward-looking statements are based on beliefs, expectations and opinions of management on the date the statements are made. For the reasons set forth above, investors should not place undue reliance on forward-looking statements.



For more information, please contact

Peregrine Metals Ltd.
Mr. Eric Friedland
President
(604) 669-8800
or
Peregrine Metals Ltd.
Mr. Michael Westerlund
Vice President Investor Relations & Corporate Communications
(604) 669-8800
info@pmet.com
www.pmet.com

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