Pacific Iron Ore Corp.
TSX VENTURE : POC

Pacific Iron Ore Corp.

June 26, 2009 16:13 ET

Pacific Iron Ore Corporation Announces Renegotiation of Option

CALGARY, ALBERTA--(Marketwire - June 26, 2009) - Pacific Iron Ore Corporation (TSX VENTURE:POC) announces that it has renegotiated its option agreement to acquire 3 mineral claims and 14 leases covering approximately 720 hectares referred to as the "Best property".

The Best property will be combined with the Corporation's "King Bay" and "St. Anthony" properties to form the "St. Anthony's Project". The St. Anthony's Project is located in Ontario and includes 54 mining claims and 14 leases covering a combined 8,784 hectares. Management believes these properties exhibit the potential for gold, silver and copper. It is anticipated that a 43-101 compliant Technical Report on the St. Anthony's Project will be submitted for filing in the immediate future and will be available on SEDAR at www.sedar.com.

In renegotiating the option agreement, the Corporation received a two thirds reduction in the applicable net smelter royalty ("NSR") contained in the original option agreement, from 3% down to 1%, and the elimination of its annual commitment for expenditures on the Best property of approximately $45,000 per year. The Corporation also received the right to further reduce the NSR at its option by paying the sum of one million dollars for every one-half of one percent reduction it elects to take in the future. In order to exercise its option to acquire a 100% working interest in the Best property, the Corporation must issue 200,000 common shares ("Common Shares") of Pacific Iron Ore Corporation to the owner as set out below:

1. 30,000 Common Shares upon execution of the Agreement;

2. 30,000 Common Shares on or before the first anniversary of the date of the Agreement; and

3. 140,000 Common Shares on or before the second anniversary of the date of the Agreement.

The current owner of the Best property is arm's length to the Corporation. Upon the Corporation issuing the 200,000 Common Shares as aforesaid, the Corporation shall have exercised its option and acquired a One Hundred (100%) working interest in the subject mining claims and leases. Completion of the transaction remains subject to receipt of all required regulatory approvals.

Company Contacts:

For further information please refer to the Corporation's profile on SEDAR which can be accessed at www.sedar.com, visit our website at www.pacificironorecorp.com.

Forward Looking Statements:

The TSX.V Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This release includes certain statements that may be deemed "forward looking statements". All statements in this release, other than statements of historical facts, that address future production, reserves potential, exploration drilling, exploration activities and events or developments that the Corporation expects are forward looking statements. Although the Corporation beliefs the expectations expressed in such forward looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward looking statements. Factors that could cause results to differ materially from those in the forward looking statements include, but are not limited to: market prices; exploitation and exploration successes; continued availability of capital, financing and personnel; government regulation and laws; the Corporations relationship with First Nations; environmental developments; and general economic, market or business conditions. Investors are cautioned that such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward looking statements. For more information on Pacific Iron Ore Corporation, Investors should review the Corporation's registered filings which are available at www.sedar.com.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Pacific Iron Ore Corporation
    Todd Montgomery
    CEO
    (403) 228-0607
    (403) 262-4860 (FAX)
    or
    Pacific Iron Ore Corporation
    Jeffery Austin
    President
    (250) 763-4892
    (403) 265-2887 (FAX)
    or
    Pacific Iron Ore Corporation
    Leonard Cornez
    Chief Financial Officer
    (403) 218-0294 or 1-866-682-5812
    (403) 265-2887 (FAX)
    Website: www.pacificironorecorp.com