NEWS RELEASE
Vancouver, BC - Pinnacle Mines Ltd. reports that it has recently been informed by Tianlong Mining Co. Ltd. ("Tianlong"), the private owner of the Yien Jia Ping gold property ("YJP") in southeast Yunnan, PRC, which is a target acquisition of Pinnacle and the subject of a letter of intent between Pinnacle and Tianlong as announced by Pinnacle on February 17, 2004, that Tianlong has unilaterally decided to cancel the letter of intent and refund all payments made by Pinnacle to date.Management and directors of Pinnacle believe the letter of intent is a binding contract and are not interested in canceling the agreement. Accordingly, Pinnacle's Chinese counsel has been instructed to notify Tianlong that Pinnacle does not recognize Tianlong's unilateral action, and that Pinnacle will use all governmental and legal remedies available, both in China and abroad, to insure the terms of the agreement are complied with. A member of Pinnacle's board is currently in China, where it is hoped, an amicable solution can be met.
Pinnacle further reports that it currently is in discussion on several other mineral assets in China and further disclosure will be made in due course.
On behalf of the Board
| "Paul Saxton" Chairman |
"Andrew Bowering" President |
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for the adequacy or the accuracy of the content of this news release.