Pacific Comox Resources Ltd.

Pacific Comox Resources Ltd.

October 13, 2005 07:30 ET

Pacific Comox Resources Ltd.: News Release

TORONTO, ONTARIO--(CCNMatthews - Oct. 13, 2005) -

- Option Agreement On 3,400 Acre Claim Group On North Boundary Of Ryan Lake Claims

- Proposed $300,000 Financing For Additional Drilling On Ryan Lake

Pacific Comox Resources Ltd. (TSX VENTURE:PCM) reports that a preliminary Option Agreement has been signed to acquire claims, the "Log Lake Claims" totaling about 3,400 acres contiguous to the northern boundary of the Ryan Lake claims at Matachewan, Ontario. To exercise the 36 month option, the Company will make cash payments of $180,000, issue 850,000 common shares and fulfill a $235,000 work commitment. The Vendor retains a 2% NSR on all minerals mined or processed. The Company may buy back 1% of the 2% NSR for $1,000,000 at any time. The royalty on precious stone production is 1% (one percent) of gross sales. Previous exploration on the claims has indicated anomalous copper/molybdenum zones.

The Company is proposing a non-brokered financing of C$300,000 through a number of private placements. The financing is in the form of $100,000 of Common Share Units priced at $0.06/unit consisting of one common share and one warrant exercisable for one share at C$0.10 for 18 months from closing and $200,000 Flow-Through Units priced at $0.06/unit consisting of one flow-through share and one-half warrant, with one warrant exercisable for one share at $0.10 for 18 months from closing. The securities will be subject to a four month hold period from closing. A finder's fee of 8% in cash or shares is payable where applicable. Finder's or agent's warrants, consisting of common share units exercisable at $0.10/unit for 18 months from closing will be payable where applicable at the rate of 10% of the units sold.

The funds raised will be used for additional diamond drilling to advance a resource estimate on the Ryan Lake property, explore the Company's other properties, and for working capital. The Log Lake Option Agreement and the financing are subject to regulatory approval.

Donald Empey


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

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