SOURCE: Pinnacle Resources, Inc.

August 24, 2006 10:11 ET

Diamonaire Now Wholly Owned by Pinnacle

ENGLEWOOD, CO -- (MARKET WIRE) -- August 24, 2006 -- Pinnacle Resources, Inc. (PINKSHEETS: PNRR) announced that it has taken over 100% ownership in Diamonaire (Pty) Limited effective as of July 1, 2006. Since inception of the joint venture, Diamonaire has been owned equally by Ocean Options, a South African closed corporation represented by Chris Wilson, inventor and operator of the AquaWalker technology. Mr. Gamble, President of Pinnacle said that "The increased 50% ownership in Diamonaire will preserve the foreign loan account that Pinnacle has established with the South African Reserve Bank now in excess of Rand 8 Million (approximately US$1.2 million). Maintaining the Reserve Account status is important to the company because it allows Pinnacle to repatriate the money invested in Diamonaire to the United States in US Dollars."

The company's CFO Mr. Hildeband added that "Pinnacle will gain sole ownership control over the AquaWalker technology which management feels is critical to future joint venture ocean mining projects."

In recent months Mr. Wilson has developed additional marine mining equipment at his own expense. This satellite equipment is called the AquaBlower. When fully developed it would accommodate the AquaWalker and potentially enhance the ability of the AquaWalker to achieve increased recoveries of diamond bearing gravels. In order to avoid potential conflict Mr. Wilson housed that AquaBlower technology in another entity and recommended that he surrender his ownership in Diamonaire back to Pinnacle. The company accepted Mr. Wilson's proposal as it was attractive to Pinnacle in that no additional funding is required and the company will have the opportunity to license and use the AquaBlower technology, if needed, to replace its caisson technique for marine diamond mining.

Additional information on Pinnacle Resources, Inc. is available on the company's website at http://www.pnrr.net

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 not come to pass. It is important to note that actual results may differ from those expressed in such a 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
    303-705-8600
    info@pnrr.net