Pan-Nevada Gold Corporation
TSX VENTURE : PNV

Pan-Nevada Gold Corporation

August 28, 2006 09:00 ET

2006 Pan-Nevada Annual Report Released

Drilling Programs at Pan and Jessup Advance Projects

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 28, 2006) - Pan-Nevada Gold Corporation (TSX VENTURE:PNV) announced today that has released its quarterly and year end report (BC FORM 51-901F) for the year ending April 30, 2006.

Highlights are as follows:

- Jessup Gold Property Optioned

- 56 Hole RC Drill Program Completed at Jessup

- New Discovery Made at Pan at Black Stallion

- Syncline Area Extended at Pan

Pan-Nevada is engaged in the exploration and development of gold resource properties located in Nevada, USA. The key project is Pan Gold Project, part of the Lyle Campbell Trust (LCT) properties; they are all in the exploration stage. In the year ending April 30, 2006, Pan-Nevada drilled a total of 107 holes at Pan. Details can be found in press releases on Pan-Nevada's website (www.pannevada.com) and at the SEDAR website (http://www.sedar.com).

During the year ending April 30, 2006, the Company acquired an option to acquire the Jessup leasehold from a private company in exchange for US$50,000 and an additional US$400,000 paid in two equal installments in late 2006 and 2007. Immediately prior to the year end, the Company initiated a 46-hole rotary RC drilling program that was completed in late May 2006. Results from this program have been previously reported and the results are available on the Company's website and on the SEDAR website, as noted above.

During the year ended April 30, 2006, the Company incurred a net loss of $463,848 (2005 - $1,023,940). The improved results are primarily attributed to the $600,937 write-off of the Thunder Mountain property in the 2005 fiscal year. Additional savings resulted from a temporary reduction in consulting fees and receiving two month's free rent. The increase in total assets during the current year is primarily attributed to the Company receiving gross proceeds of $2,047,340 (2005 - $169,000) from two private placements. The Company proposes to meet any additional requirements through equity financing.

Some significant expenses are as follows: consulting and management fees of $132,274 (2005 - $173,764); office expenses of $38,935 (2005 - $20,346); professional fees of $75,893 (2005 - $36,780); rent expenses of $17,597 (2005 - $9,481); shareholder communication expenses of $21,144 (2005 - $21,922); stock-based compensation expenses of $77,108 (2005 - $122,580), transfer agent and regulatory fees of $22,978 (2005 - $13,501); travel and promotion expenses of $32,391 (2005 - $19,125); write-off of mineral property and reclamation bond of $Nil (2005 - $225,065), and write-off of deferred exploration costs of $Nil (2005 - $375,872).

Working capital (deficiency) as at April 30, 2006 was $550,766 (2005 - ($110,467)).

Net cash used in operating activities for the year ended April 30, 2006 was $402,580 (2005 - $290,772). Cash used during the current year consists primarily of a change in non-cash working capital.

Financing activities provided cash of $1,962,113 during the year ended April 30, 2006 (2005 - $248,086). Cash provided during the current year consists of $2,047,340 from the completion of two private placements. The Company used these proceeds to settle the outstanding promissory note, share issue costs, conduct exploration activities on mineral properties and repay amounts owing to related parties.

Net cash used for investing activities was $939,817 (2005 - $659,960) during the year ended April 30, 2006. The funds were primarily spent on acquisition and exploration of mineral properties.

In July 2005, Pan-Nevada raised $1,647,340 through a private placement of 4,118,350 units priced at $0.40, each unit consisting of one common share and a non-transferable share purchase warrant entitling the holder to purchase one additional common share at $0.50 until July 19, 2006 and at $0.55 until July 19, 2007. Pan-Nevada completed an additional private placement of 1,000,000 common shares for gross proceeds of $400,000. Both of these private placements were non-brokered.

Complete information including the BC FORM 51-901F can be found online at the Company website (www.pannevada.com) as well as at the SEDAR website (http://www.sedar.com).

Pan-Nevada's objective is to create value for its shareholders by acquiring, exploring, and developing advanced-stage projects located within the major gold producing areas of Nevada. The Company's total land position is in excess of 14,000 acres, comprised of five projects along the Battle Mountain-Eureka Trend, the Carlin Trend and the western Nevada volcanic belt. Three of the projects have known mineralization or resources of potentially economic grade and dimension.

On behalf of the Board of Directors,

John E. Watson, President, Pan-Nevada Gold

Forward-Looking Statements

Certain information set forth in this press release, including management's assessment of plans and projects, contains forward-looking statements. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond the Company's control, including: the results of exploration activities; risks and uncertainties relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits, results of initial feasibility, prefeasibility and feasibility studies, market reaction to future exploration results; the Company's anticipated strategies for growth; the results from future exploration opportunities; the price of metals; currency fluctuations; increases in costs; general market and industry conditions; and the possibility that future exploration, development or mining results will not be consistent with the Company's expectations, and other factors.

Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Actual results, programs and financial position could differ materially from those expressed in or implied by these forward-looking statements, and, accordingly, no assurance can be given that the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits will derive therefrom. Pan-Nevada Gold Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.


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

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