SOURCE: Pinnacle Resources, Inc.

May 30, 2007 09:00 ET

Pinnacle Finalizes Sale

ENGLEWOOD, CO--(Marketwire - May 30, 2007) - Last April Pinnacle Resources, Inc. (PINKSHEETS: PNRR) announced that it had entered into a Share Sale Agreement with an Australian mining company that plans to develop Pinnacle's South African vanadium-bearing magnetite deposit.

The agreement provided for a $200,000 down payment and the balance of $8.8 million to be payable in two installments. The first payment of $3.2 million was paid at closing with an additional $1.6 million in escrow pending the clarification of a shareholding issue. The second installment of $4 million is to be paid after Pinnacle's "old-order" mining right has been converted into a "new order" mining right in accordance with South Africa's recently passed mining law.

Pinnacle has a non-binding understanding with the buyer that Pinnacle may convert part, or all, of the final installment into a share ownership in a public mining company that may become the operating company. At closing, Pinnacle will assume the obligations to pay for brokerage commissions, legal fees and minority interest buyouts. Totals are estimated at one million dollars payable out of the first payment and $500,000 out of the second installment.

Pinnacle Resources, Inc. is a natural resource company that seeks to exploit indicated, but undeveloped, mineral resources through innovative technology. In South Africa, the Company has developed a patented mining technology designed to recover diamonds known to be present in gravels deposited in shallow marine environments that are not accessible to conventional mining methods. In the US, Pinnacle has invested in a company that holds a license to a patented technology that reforms carbonaceous waste into motor vehicle fuels.

This news release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. These forward-looking statements include expressions of beliefs, expectations, hopes, or intentions regarding the future, which may or may not come to pass. It is important to note that actual results may differ from those expressed in such forward-looking statements. Although Pinnacle believes its properties have potential, they are in early stages of exploration or development. There can be no assurance that if identified, any resource might be economically extracted. If additional projects are acquired, there can be no assurance of any economic benefit of cash flow to the company.

Contact Information

  • For more information, contact:
    Pinnacle Resources