Pacific Ridge Exploration Ltd. ("Pacific Ridge") and Kaminak Gold Corporation ("Kaminak") executed an Option, Back-In and Joint Venture Agreement (the "Agreement") dated September 28, 2007, whereby Kaminak has granted Pacific Ridge the option to increase its interest from 60% to a 100% interest in the Baker Uranium Project.
Under the terms of the Agreement, Pacific Ridge has the option to increase its interest to a 100% interest by making an initial 2.0 million share payment to Kaminak and a second 2.0 million share payment upon completion and submission to Kaminak of a positive feasibility study. Kaminak will then have the right to back-in to a 20% working interest and become a joint venture partner, by paying Pacific Ridge an amount equal to 40% of the expenditures incurred by Pacific Ridge during the period between signing the Agreement and the date Kaminak receives the positive feasibility study.
Should Kaminak elect not to exercise its back-in right, Pacific Ridge will retain its 100% interest in the Baker Uranium project.
This agreement pertains to all commodities except diamonds, and is subject to TSX-Venture exchange approval. Underlying interests are held by Hunter Exploration Group as to a 2% net smelter return interest, as well as Shear Minerals/Stornoway Diamond Corporation, who collectively hold a 8.5 % net profits interest.
The Baker Uranium project is located approximately 50 kilometres south from the town of Baker Lake, Nunavut. The Baker Basin is one of several sedimentary basins in central northern Canada that host significant uranium mineralization. Pacific Ridge is currently drill-testing strike and depth continuity of structurally hosted uranium mineralization in both the Lucky-7 and KZ Zones within the Baker Basin Project.
"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.