GOLD EXPLORATION NEWS Mongolian Resource Model Updated

BAOTOU, China Infill drilling has allowed PACIFIC MINERALS to update resources at its large, low-grade 217 gold project 650 km northwest of Beijing. The latest in-pit measured and indicated resource is 29.17 million tonnes grading 0.95 g/t Au plus inferred resources of 6.77 million tonnes at 0.98 g/t Au. There are an estimated 1.1 million contained ounces of gold.

Mineralization at the 217 property extends over a strike length of 4.5 km in three separate zones along strike. A conceptual mine plan is being developed for a scoping study based on the in-pit resource defined in the project's Northeast zone. The Northeast zone contains 80% of the measured and indicated resources. The other zones are the Central and Southwest.

Metallurgical testing carried out in Canada and China seem to indicate that both the oxide and sulphide ores are highly amenable to heap leaching, says Pacific Minerals.

Pacific Minerals has the right to earn up to 96.5% of the 217 project. It has taken IVANHOE MINES on as its 50% partner. A full history of the project is available at www.pacific-minerals.com.