INVESTOR RELATIONS AGREEMENT
Vancouver, BC - Pinnacle Mines Ltd. (the “Company”) is pleased to announce that it has entered into an agreement (the “Agreement”) with I TELL AG i.G. ("I TELL") of Baar, Switzerland for investor relations services, primarily in Europe. The term of the contract is from May 15, 2006 to November 15, 2006 subject to monthly renewal thereafter. I TELL will receive 7,500 per month, for a total of 45,000, which will be paid out of cash on hand. The Company’s objective in entering into the agreement is to increase awareness in the European investment community.
Walter Blum is the principal of I TELL and has provided investor relations services for other companies. Neither I TELL nor Walter Blum currently own any shares of Pinnacle.
Under the Company’s stock option plan, the Company has agreed to grant to I TELL incentive stock options to purchase 200,000 shares, at an exercise price of $1.26 per share. The options are exercisable for a period of two years. In addition, the Company has agreed to grant employees and consultants incentive stock options to purchase 200,000 shares at an exercise price of $1.26, such options exercisable for a period five years.
Pinnacle Mines Ltd. is currently listed on the Frankfurt Stock Exchange under the symbol “O7M”.
Pinnacle Mines Ltd. is a Canadian based mineral exploration and development company with assets in Canada and China. In Canada, Pinnacle holds several properties in Northwestern British Columbia, in proximity to numerous past and producing mines including Silbak-Premier Mine and Barrick Gold’s famed Eskay Creek Mine. In China, Pinnacle’s current focus is in Southeast Yunnan, an area being increasingly considered for its potential to host significant mineral resources including “Carlin” style gold deposits.
For further information contact Andrew Bowering, President, at 604-688-7377 or visit Pinnacle’s website at http://www.pinnaclemines.com.
On behalf of the Board of Directors
“Andrew W. Bowering”
President and CEO