COMPANY INCREASES BROKERED PORTION OF PRIVATE PLACEMENT
Vancouver, BC Pinnacle Mines Ltd. ("Pinnacle" or the "Company") reports that, subject to regulatory approval, it has increased its $6,900,000 private placement previously announced in its news release dated May 9, 2006 to $8,625,000.
Under the increased financing, the Company will issue up to 2,000,000 units under the brokered portion of the private placement with Canaccord Capital Corporation ("Canaccord") with an over-allotment option of 1,000,000 units. Canaccord will also receive a corporate finance fee of 12,000 units in addition to the 28,000 units previously disclosed in the Company's May 9, 2006 news release. All other terms as announced on May 9, 2006 remain the same.
Proceeds of the financing will be used for exploration and development of the Company's mineral properties, potential acquisitions, as well as for working capital.
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
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