June 7, 2007

Increase In Private Placement Announced May 31, 2007

Pacific Ridge Exploration Ltd. (the "Company") (TSX VENTURE:PEX) has amended its agreement with Dundee Securities Corporation and Haywood Securities Inc. (the "Agents"), announced on May 31, 2007, with the addition to the Offering of a concurrent non-brokered private placement (the "Non-Brokered Private Placement").

THE OFFERING
The Offering announced on May 31, 2007 contemplated:

  • The sale of up to 6,000,000 flow through common shares ("FT Share") at a price of $0.35 per FT Share for maximum aggregate proceeds of $2,100,000.
  • The sale of up to 7,000,000 units (the "Units") at a price of $0.30 per Unit for maximum aggregate gross proceeds of $2,100,000. Each Unit consisting of one common share of the Company and one-half of one transferable common share purchase warrant of the Company (each whole warrant a "Warrant"). Each Warrant will entitle the holder thereof to purchase one common share of the Company for a period of 18 months after the closing date of the Offering at an exercise price of $0.40. In the event that the common shares of the Company trade on the TSX Venture Exchange at a closing price greater than $0.68 per common share for a period of 20 consecutive trading days at any time after four months and one day after the closing date of the Offering, the Company may accelerate the expiry date of the Warrants by giving notice to the holders thereof and in such case the Warrants will expire on the 30th day after the date on which such notice is given by the Company.
  • The Agents receiving a cash commission equal to 6.5% of the gross proceeds raised in the Offering. In addition, the Company agreed to issue to the Agents on closing broker warrants exercisable for common shares of the Company equal in number to 6.5% of the number of FT Shares and Units sold under the Offering with the broker warrants being exercisable at a price of $0.35 per common share for a period of 18 months after the date of the closing of the Offering.
  • The closing of the Offering being expected to occur on or about June 20, 2007.

AMENDED OFFERING

The Offering is amended as follows, with the other terms of the Offering remaining unchanged:

  • A reduction in the number of Units from 7,000,000 Units to 5,970,000 Units, reducing the aggregate gross proceeds to up to $1,791,000.

NON-BROKERED PRIVATE PLACEMENT
The Non-Brokered Private Placement contemplates:

  • The sale of up to 1,240,000 flow through common shares ("Non-Brokered FT Shares") at a price of $0.35 per Non-Brokered FT Share for an additional maximum aggregate gross proceeds of $434,000.
  • The sale of up to 1,030,000 units ("Non-Brokered Units") at a price of $0.30 per Non-Brokered Unit for additional maximum aggregate proceeds of $309,000, with the Non-Brokered Units having the same terms as the Units included in the Offering.
  • The Company will pay finders' fees of 3.0% on 400,000 of the Non-Brokered FT Shares and 900,000 of the Non-Brokered Units sold.
  • The closing of the Non-Brokered Private Placement is expected to occur on or about June 20, 2007.

The Offering, as amended, and the Non-Brokered Private Placement are subject to regulatory approval and all securities issued will be subject to a mandatory four month hold period from the date of closing.

The Company will use the gross proceeds from the sale of the FT Shares for Canadian Exploration Expenses (within the meaning of the Income Tax Act (Canada)), with the Company using its best efforts to ensure that such Canadian Exploration Expenses qualify as a "flow-through mining expenditure" for purposes of the Income Tax Act (Canada), related to the exploration of the Company's Baker Basin Uranium Project located in Nunavut, Canada. The Company expects to renounce such Canadian Exploration Expenses with an effective date of December 31, 2007. The net proceeds from sale of the Units will be used for general working capital purposes and development of the Company's property portfolio.

The Company plans a $3 million drilling program during 2007 with immediate follow-up drilling of two zones that yielded encouraging uranium assays from the seven holes drilled in late 2006. Diamond drilling will also be directed to two new uranium discoveries made last year by the Company's exploration crew. Exploration is in progress with crew and diamond drilling equipment now being mobilized to the project site.

The Baker Basin Uranium Project is located about 50 kilometres south of the town of Baker Lake in southern Nunavut. The project covers an area of 500,000 acres over an approximate 60 kilometre length of the southern boundary of the Baker Lake basin, where over 20 uranium prospects have been discovered. Baker Lake basin is one of four Canadian proterozoic basins recognized as attractive depositional environments for large uranium deposits.

"Wayne J. Roberts"

Wayne J. Roberts
Vice-President, Exploration

For further information, contact:

Corporate Information
Pacific Ridge Exploration Ltd.
John S. Brock
President
Tel: (604) 604.641.2759
www.pacificridgeexploration.com

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Forward-Looking Information
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.