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PINNNACLE RECEIVES NEW 43-101 PRELIMINARY ECONOMIC ASSESSMENT INCREASING RESOURCES FOR THE SILVER COIN GOLD PROJECT

Vancouver, B.C., January 11, 2010; Pinnacle Mines Ltd. (TSXV: PNL; “Pinnacle” or the “Company”) is pleased to announce that it has received the commissioned NI 43-101  Preliminary Economic Assessment Report for its Silver Coin gold project located near the town of Stewart, in NW British Columbia. The report, which was produced by the engineering firm Tetra Tech, Inc. (“Tetra Tech”) based in Golden, Colorado, presents a Preliminary Economic Assessment (“PEA”), including an updated resource calculation, based on a total of 714 drill holes totaling 85,844 meters. The project is a joint venture with Mountain Boy Minerals Ltd. (TSXV: MTB) and includes 26 contiguous claims with a net area of 1255 Ha. Pinnacle owns 70% of the presently modeled gold project with the option to earn a larger percentage.  The base case model includes production of a sulfide flotation concentrate which would be cyanide leached in a closed circuit process resulting in a directly saleable gold-silver dore product.  At a 10% discount rate this model results in pre-tax Net Present Value (NPV) of US$58.3 million at a gold price of US$850.00 and an NPV of US$88.46 million at a gold price of US$900.00 for the Silver Coin project.

Resource Calculation

Using a Base Case cut-off grade of 0.75 grams gold per ton (gpt) Tetra Tech reports the following gold resource:

The data indicate a combined Measured and Indicated resource of 12.32 M tons grading 1.89 gold gpt for a total of 749,000 ounces of gold, 3.18 M ounces of silver and 87.76 M pounds of zinc.  An additional 750,000 ounces of gold are included in the Inferred resource, with 15.34 M tons grading 1.52 grams gold per ton.

Tetra Tech states “There is excellent potential to grow the Silver Coin resource. The resource remains substantially open to the north and northwest; and many of the best intercepts in recent drilling come from the north end of the deposit. While the topography and rock conditions suggest that drilling costs will be higher in some areas of the north, drilling on the northern third of the deposit has been extremely productive to date, yielding approximately 400,000 ounces of gold per 100 meters of strike. Pinnacle expects the next step-out drill fences at 50m intervals to be very productive. Discovery costs on the next increments of the resource could easily be $2.50 per ounce or less.”

Significant progress has been made regarding metallurgical testing. Rougher flotation recoveries for gold vary between 93.8 and 99.3%. Open circuit cleaner flotation tests resulted in gold recoveries of between 85 and 95%. A locked cycle test resulted in 94.7 percent overall gold recovery into a fourth cleaner concentrate grading 110 grams gold per ton, and demonstrates that relatively high gold recoveries and upgrading could be anticipated from a continuous operated flotation circuit designed to regrind and recycle intermediate products.

Dr. Lawrence Dick, Ph.D., P.Geo., President, CEO and Director of Pinnacle Mines Ltd. states “we are very pleased with the thoroughness and positive results of the Tetra Tech document. The results clearly show that Silver Coin is a significant gold deposit in the Stewart Camp with a very large upside potential for the discovery of more gold mineralization. The Company is proceeding with refining the project economics, and these data will be made available as they are completed. Also ongoing are environmental studies which will include potential mine permitting.

Our understanding of the controls of mineralization at Silver Coin forms the basis for anticipated drilling this next field season, with the objective of following the gold-mineralized trend towards the north to add gold ounces to the growing inventory.”

This press release was prepared and reviewed by Lawrence A. Dick, Ph.D., P.Geo, who is recognized as a Qualified Person under the guidelines of National Instrument 43-101. John W. Rozelle, P.Geo, is the qualified person under Tetra Tech who was responsible for the report and the estimates therein. All resource estimates were measured at a cut-off grade of 0.75 gold gpt. Metallurgical recoveries used by Tetra Tech were 88% for gold and 60% for silver. A charge of $25 per ounce for refining, freight and insurance was used in the calculations of NPV. Details of the economic analysis calculated by Tetra Tech will be addressed in a following news release.

On Behalf of the Board:

Lawrence A. Dick, Ph.D., P.Geo

President & CEO

For further information contact Mike Thast at 604.688.9588 or visit Pinnacle’s website at www.pinnaclemines.com.

FORWARD LOOKING STATEMENTS: This document includes forward-looking statements as well as historical information. Forward-looking statements include, but are not limited to, the continued advancement of the company’s general business development, research development and the company’s development of mineral exploration projects. When used in this document, the words “anticipate”, “believe”, “estimate”, “expect”, “intent”, “may”, “project”, “plan”, “should” and similar expressions may identify forward-looking statements. Although Pinnacle Mines Ltd. believes that their expectations reflected in these forward looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements include the potential that fluctuations in the marketplace for the sale of minerals, the inability to implement corporate strategies, the ability to obtain financing and other risks disclosed in our filings made with Canadian Securities Regulators.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release