Peregrine Metals Limited Drills 178 Metres of 0.57% Cu Including 78 Metres of 0.69% Cu, and 60 Metres of 0.79% Cu at Altar

Vancouver, British Columbia -- (Marketwire - Aug. 3, 2010) - Peregrine Metals Ltd. ("Peregrine" or "the Company") (TSX: PGM) is pleased to report final copper assay results from the remaining holes of the recently completed 2010 drilling programme at the large Altar porphyry copper-gold deposit ("Altar") in San Juan Province, Argentina. In this fifth and final set of results from 19 of 76 holes drilled this year, long intervals of copper mineralization were intersected in the chalcocite-covellite dominant zone ("chalcocite-covellite zone") where the Company is working to confirm a leachable copper resource, and below this zone to depths of 1,009 metres. Previously received assay results were released by Peregrine on June 2, 10, 24 and July 8, and the news releases can be viewed at www.pmet.com. The resource definition work is part of the Preliminary Economic Assessment ("PEA") scheduled for completion this year on a large-scale, solvent extraction/electrowinning ("SX/EW"), copper heap leaching operation. Drilling is expected to re-commence at Altar this November. Detailed updates on the on-going metallurgical test-work and independent, leachable and global copper resource estimates will be provided in the fourth quarter.

Of particular note were intersections from the potentially leachable chalcocite-covellite dominant mineralization in hole ALD-136 of 0.568% Cu over 178 metres including 78 metres of 0.692% Cu and in hole ALD-138 of 0.791% Cu over 60 metres.

A summary of five of the drill holes reported today is provided in the table below, with intersections of particular interest occurring in the potentially leachable zone highlighted in bold text. These results, as well as select previously released intersections, can be viewed on a map, along with the drill hole locations, at www.pmet.com/i/pdf/altar175.pdf. An image showing the locations of all holes drilled in 2010 can also be viewed at this link.


SUMMARY OF ALTAR DRILL HOLE RESULTS REPORTED TODAY

Drill Hole # Inclination (degrees) Azimuth (degrees) Total Depth (m) Intersection Interval
(m) Total Cu
(%) Comments Cut-off Grade (% Cu)
From (m) To (m)
ALD-129 -90 000 513.0 164.0 513.0 349.0 0.343 Mixed Cu mineralization 0.2
including 202.0 430.0 228.0 0.389 Mixed Cu mineralization 0.3
ALD-132 -90 000 545.0 102.0 545.5 443.0 0.304 Mixed Cu mineralization 0.1
including 144.0 262.0 118.0 0.315 Chalcocite-covellite zone 0.2
ALD-136 -90 000 371.0 66.0 370.0 304.0 0.467 Mixed Cu mineralization 0.2
including 74.0 252.0 178.0 0.568 Chalcocite-covellite zone 0.3
& including 74.0 152.0 78.0 0.692 Chalcocite-covellite zone 0.4
ALD-138 -90 000 449.0 64.0 446.0 382.0 0.351 Mixed Cu mineralization 0.2
including 64.0 124.0 60.0 0.791 Chalcocite-covellite zone 0.4
ALD-139 -90 000 380.0 110.0 296.0 382.0 0.399 Mixed Cu mineralization 0.2
including 110.0 148.0 38.0 0.591 Chalcocite-covellite zone 0.4

Reported intersections begin directly beneath the leached capping. All copper grades are total copper. Mixed copper mineralization may contain both chalcocite-covellite and chalcopyrite-bornite mineralization. All intersections that fall below a 0.10% copper cut-off grade are not reported.


Step-out holes ALD-103, 110, 124, 126, 127, 128, 130, 133 and 137, which were drilled to test the outer lateral limits of the known copper mineralization, also returned copper intersections, including several in the potentially leachable chalcocite-covellite zone. A summary of these holes is provided in the following table, with intersections occurring in the potentially leachable zone highlighted in bold text.


SUMMARY OF ADDITIONAL ALTAR STEP-OUT DRILL HOLE RESULTS REPORTED TODAY

Drill Hole # Inclination (degrees) Azimuth (degrees) Total Depth (m) Intersection Interval
(m) Total Cu
(%) Comments Cut-off Grade
(% Cu)
From (m) To (m)
ALD-103 -90 000 188.1 42.0 188.1 146.1 0.236 Mixed Cu mineralization 0.1
including 48.0 100.0 52.0 0.343 Chalcocite-covellite zone 0.2
ALD-110 -90 000 419.5 160.0 419.5 259.5 0.239 Mixed Cu mineralization 0.1
including 160.0 252.0 92.0 0.312 Mixed Cu mineralization 0.2
& including 190.0 220.0 30.0 0.459 Chalcocite-covellite zone 0.3
ALD-124 -90 000 226.5 20 156.0 136.0 0.223 Mixed Cu mineralization 0.1
including 58.0 158.0 100.0 0.268 Mixed Cu mineralization 0.2
ALD-126 -90 000 341.0 62.0 341.0 279.0 0.271 Mixed Cu mineralization 0.1
including 68.0 246.0 178.0 0.325 Mixed Cu mineralization 0.3
ALD-127 -90 000 281.0 22.0 281.0 259.0 0.254 Mixed Cu mineralization 0.1
including 22.0 156.0 134.0 0.315 Mixed Cu mineralization 0.2
ALD-128 -90 000 261.0 134.0 258.0 124.0 0.145 Mixed Cu mineralization 0.1
ALD-130 -90 000 238.5 56.0 114.0 58.0 0.172 Chalcocite-covellite zone 0.1
ALD-133 -90 000 306.0 68.0 70.0 2.0 0.944 Mixed Cu mineralization 0.2
ALD-137 -90 000 439.4 356.0 439.4 83.4 0.159 Mixed Cu mineralization 0.1

Reported intersections begin directly beneath the leached capping. All copper grades are total copper. Mixed copper mineralization may contain both chalcocite-covellite and chalcopyrite-bornite mineralization. All intersections that fall below a 0.10% copper cut-off grade are not reported.


Lateral step-out holes ALD-125, 131, 134, 135 and 140 were drilled outside the previously defined edge of the deposit and had copper intersections that fall below a 0.10% copper cut-off grade. Holes ALD-104, 105, 106, 109, 112, 113, 116 and 119 were drilled specifically to provide material for the 2010 metallurgical work being conducted as part of the PEA and were twins of holes drilled in previous drilling campaigns.

A summary for holes ALD-43 and 51, which were originally drilled in 2008 (results reported in the October 20, 2009, NI 43-101 Technical Report) and extended during the 2010 drilling season is provided in the table below.


SUMMARY OF ALTAR DRILL HOLE EXTENSIONS REPORTED TODAY

Drill Hole # Inclination (degrees) Azimuth (degrees) Total Depth (m) Intersection Interval
(m) Total Cu
(%) Comments Cut-off Grade
(% Cu)
From (m) To (m)
ALD-43 (2008) -90 000 928.9 210.0 928.9 718.9 0.720 Mixed Cu mineralization 0.3
Including 210.0 292.0 82.0 0.970 Chalcocite-covellite zone 0.5
& including 602.0 924.0 322.0 0.900 Chalcopyrite-bornite zone 0.5
ALD-43
(2010 extension) -90 000 1,009.9 929.10 1,009.9 80.8 0.560 Chalcopyrite-bornite zone 0.4
ALD-51 (2008) -90 000 422.0 152.0 422.0 270.0 0.500 Mixed Cu mineralization 0.3
Including 154.0 224.0 70.0 0.840 Mixed Cu mineralization 0.5
ALD-51
(2010 extension) -90 000 659.4 422.0 659.4 237.4 0.414 Mixed Cu mineralization 0.2

Reported intersections begin directly beneath the leached capping. All copper grades are total copper. Mixed copper mineralization may contain both chalcocite-covellite and chalcopyrite-bornite mineralization.


ALTAR PROJECT SUMMARY

Altar is a large, Miocene-age porphyry copper deposit located within the belt of world-class porphyry copper deposits that includes El Teniente, Los Bronces-Rio Blanco and Los Pelambres-El Pachon. The alteration zone at Altar encompasses an area measuring more than three by two kilometres, with a strong, coincident induced polarization (IP) geophysical anomaly of approximately the same size. The copper mineralization within the upper 300 metres of the deposit includes both supergene digenite-covellite and hypogene chalcocite-bornite replacing earlier chalcopyrite. As announced on April 1, 2010, an independent NI 43-101 Measured and Indicated Resource of over 2.87 billion pounds of copper (251 million tonnes grading 0.52% Cu) and an Inferred Resource of over 2.93 billion pounds of copper (244 million tonnes grading 0.54% Cu) at a 0.40% Cu cut-off grade have been currently identified at Altar based on only the first 64 holes drilled into the deposit prior to the 2010 drill programme, which consisted of an additional 76 holes in 26,353 metres.

The two major goals of the 2010 drilling programme at Altar are to further define the higher-grade, chalcocite-covellite zone which appears to be amendable to heap leaching, and to expand the global copper resource. The 2010 drilling programme and associated PEA have been designed to confirm a leachable copper resource and increase the size and confidence level of the global porphyry copper resource at Altar. Drilling is expected to re-commence at Altar this November.

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.

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. Mike Westerlund, Vice President, Investor Relations and Corporate Communications
(604) 669-8800, 604 408-8881 (FAX)
info@pmet.com
www.pmet.com