Vancouver, B.C. - July 14, 2009 - Pacific Ridge Exploration Ltd. (TSX Venture: PEX) reports that it has entered into a binding Letter of Understanding for an option to acquire the Polar/Stewart Property consisting of 149 mineral claims from Ryanwood Exploration Inc. ("Ryanwood") of Dawson City, Yukon.
The Polar/Stewart Property is tied on to the eastern border of Pacific Ridge's Goldcap Property which in turn is adjacent to the northeastern boundary of mineral claims held by Underworld Resources Ltd. The western boundary of the Goldcap mineral claims is approximately 6,000 metres northeast from Underworld's White Gold - Golden Saddle gold zone.
The principal terms of the Letter of Understanding, which is subject to regulatory approval, include a cash downpayment of $75,000 to be made and 250,000 post consolidation common shares of Pacific Ridge to be issued, upon the receipt of regulatory approval. Pacific Ridge has the option to earn a 100% interest in the Property on or before June 30, 2013 by making staged cash payments totaling $300,000, share issuances totaling 1,250,000 shares and exploration expenditures in the aggregate amount of $1.5 million. Ryanwood will retain a 2% net smelter return interest that requires advance royalty payments in the amount of $25,000 per year commencing June 30, 2014. At the option of Pacific Ridge, the net smelter return interest may be reduced to 1 % upon making a $2.0 million payment to Ryanwood.
Ryanwood is headed by Yukon prospector Shawn Ryan who is credited with the discovery of Underworld's White Gold property.
The acquisition of the Polar/Stewart Property will add to Pacific Ridge's property holdings in the region of Underworld's White Gold discovery. Pacific Ridge, through it's Klondike Kate Project, now owns and has rights to 361 mineral claims comprising 4 properties prospective for gold discovery within the Yukon's South Klondike region.
Pacific Ridge's exploration plans will include establishment of trenching and drill targets based on results of geochemical and magnetometer surveys plus geological mapping. It is significant that anomalous gold values were obtained by the Geological Survey of Canada's Regional Geochemical silt sampling survey conducted in the vicinity of the Goldcap and Polar/Stewart mineral claims.
Pacific Ridge's disclosure of a technical or scientific nature has been reviewed by Wayne J. Roberts, P. Geo., Vice President, Exploration of Pacific Ridge and a Qualified Person under the definition of National Instrument 43-101.
"John S. Brock"
John S. Brock
For further information, contact:
Pacific Ridge Exploration Ltd.
John S. Brock
Tel: (604) 604.641.2759
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
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.