Not For Dissemination In The United States
Vancouver, B.C. - July 24, 2009 - Pacific Ridge Exploration Ltd. (TSX Venture: PEX)(the "Company") reports that, further to its news release of July 13, 2009, the Company has proceeded with the 4:1 consolidation of its issued common shares without a change of name. Effective at the opening of the market on July 24, 2009, the Company's shares will trade on a consolidated basis under the symbol "PEX" (with new CUSIP number 694798208). Letters of Transmittal will be forthcoming.
The Company also announced that it is proposing to sell by way of non-brokered private placements up to 2,500,000 Flow-Through Shares to Canadian resident investors, each Flow-Though share priced at $0.20 to raise gross proceeds of $450,000, and up to 2,500,000 units (the "Units") at a price of $0.20 per Unit to raise gross proceeds of $450,000. Each Unit is comprised of one common share and one-half of a transferable share purchase warrant, each whole warrant entitling the holder to purchase one common share at a price of $0.25 per share for 12 months.
The Company will use the gross proceeds from the sale of the Flow-Through Shares for Canadian Exploration Expenses ("CEE"), within the meaning of the Income Tax Act (Canada), with the Company using its best efforts to ensure that such CEE qualify as a "flow-through mining expenditure" for purposes of the Income Tax Act (Canada), related to the exploration of the Company's mineral exploration projects located in Yukon, Canada. The Company expects to renounce such Canadian Exploration Expenses with an effective date of December 31, 2009. The Company will use the gross proceeds from the sale of the Units for general working capital purposes and development of the Company's mineral property portfolio.
In connection with the private placements, the Company is proposing to pay finders' fees in cash (6%) or shares equal in number to 6% of the number of Flow Through shares and Units purchased by investors that may be introduced to the Company by finders.
The private placements and payment of finders' fees are subject to regulatory approval.
"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.