PINNACLE DROPS TULIGTIC – ISSUES OPTIONS
Vancouver, B.C. - Pinnacle Mines Ltd. announces that it will not meet the terms of an option agreement with Almaden Minerals Ltd. whereby Pinnacle had committed to spend US$300,000 in exploration expenditures on its Tuligitic property in Puebla State, Mexico by August 9, 2007. The commitment was the first leg of a staged 6 year option to acquire up to 60% of the property. Based on its stage of development, Pinnacle considered the property immaterial from an asset standpoint.
Pinnacle has been aggressively exploring its La Calavera and Rio Minas properties in Oaxaca State, Mexico and the move away from Tuligtic has freed-up some of the company’s geological staff and cash resources for this purpose. Pinnacle recently completed IP and geophysical surveys on La Calavera and the Company has entered into a contact with Cabo Drilling de Mexico to begin diamond drilling this month. At the large Rio Minas property, lines are currently being cleared for surveying which should begin in November.
Further, the Company will issue up to 1,230,000 new employee and director stock options at an exercise price $0.40 per share. Recently, 165,000 stock options issued during 2005 at $0.50 per share and an additional 75,000 at $0.95 per share expired unexercised. Of 125,000 stock options issued in July 2006 at $1.26 per share, 75,000 have been cancelled and the remaining 50,000 will be re-priced at $0.40 per share.
Pinnacle Mines is a Canadian based mineral exploration and development company with assets in Canada and Mexico. In Canada, Pinnacle holds properties in Northwestern British Columbia in proximity to numerous past and producing mines including the Silbak-Premier Mine and Barrick Gold’s famed Eskay Creek Mine. In Mexico, Pinnacle has options to acquire and is currently exploring two copper-gold-silver targets located within the state of Oaxaca.
For further information on this and other activities, contact Andrew Bowering or John Van Duzen at 604-688-7377 or visit Pinnacle’s website at www.pinnaclemines.com.
On behalf of the Board of Directors
“Paul Saxton”
President & CEO
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