NOT FOR DISSEMINATION IN THE UNITED STATES
With all regulatory permits now granted, Pacific Ridge Exploration Ltd. ("Pacific Ridge"), by way of option/joint venture agreement with Kaminak Gold Corp. ("Kaminak"), has commenced drilling within the Baker Basin Uranium Project located approximately 40 kilometres southeast of the town of Baker Lake, Nunavut. The first hole is testing the KZ zone, one of at least seven uranium-bearing structures presently identified within the 2040-square-kilometre Baker Basin Project area.
This season, Pacific Ridge plans to drill test at least 3 of the uranium targets: KZ, 694 and Lucky-7 zones.
Uranium exposed at the KZ zone occurs in the altered and bleached Kazan sandstone formation positioned approximately 200 to 250 metres above the granite basement underlying the Baker Basin. Uranium mineralization is associated with a northerly-trending fault structure. An eighteen-metre-long saw-cut channel sample across the uranium-bearing structure identified 2 parallel mineralized zones that assayed 0.38% U3O8 over 4.6 metres and 0.14% U3O8 over 2.8 metres. Prospecting by Pacific Ridge along the KZ zone for a 300-metre length was successful in locating 22 frost-heaved mineralized angular boulders of Kazan sandstone with grab samples averaging 0.36% U3O8 with the highest value being 0.72% U3O8 and the lowest 0.06% U3O8.
Vertical holes drilled in the 1980's with depths to approximately 100 metres along the trend of this structure, outlined mineralization along a 350 metre length with values reaching 0.84% U3O8 over 5.4 metres in hole KZ-10. Pacific Ridge located the core of hole KZ-10 and quartered the remaining half core and confirmed the reported uranium mineralized intercept with a value of 0.63% U3O8 over the same 5.4 metres.
All samples collected at the Baker Basin project are sealed in sample bags at site and forwarded to Activation Laboratories in Ancaster, Ontario for analysis. All samples are initially analyzed by a DNC technique utilizing a reactor. All high values in excess of 0.5% U3O8 are then re-analyzed by XRF and titration methods.
Wayne J. Roberts, P.Geo, Vice-President, Exploration for Pacific Ridge, a Qualified Person, has reviewed all technical data presented in this release.
Pacific Ridge, operator of the Baker Project, has the option to make an exploration expenditure of $3.0 million and issue 400,000 Units to Kaminak, thereby earning a 60% interest in the project from Kaminak. With the 2006 exploration program budgeted at $1.6 million and approximately $1.1 million of CEE Flow-Though funds plus $1.87 million of Non-Flow-Through funds on hand as at August 29th, adequate funding is in place for completion of this year's work plan at the Baker Project.
"John S. Brock"
John S. Brock
For further information, contact:
Pacific Ridge Exploration Ltd.
John S. Brock
Tel: (604) 604.641.2759
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This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address exploration drilling, exploitation activities and events or developments that Pacific Ridge Exploration Ltd. ("Pacific Ridge") expects to occur, are forward-looking statements. Although Pacific Ridge believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, and continued availability of capital and financing and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Pacific Ridge does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.