Pacific Ridge Exploration Ltd.
TSX VENTURE : PEX

Pacific Ridge Exploration Ltd.

July 09, 2008 18:59 ET

Pacific Ridge Exploration Ltd.: Proposed Private Placement of Flow-Through Shares

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 9, 2008) -

NOT FOR DISSEMINATION IN THE UNITED STATES

Pacific Ridge Exploration Ltd. (TSX VENTURE:PEX) today announces that it has agreed to sell up to 2,000,000 Flow-Through Shares, by way of non-brokered private placement, to Canadian resident investors, each Flow-Though Share priced at $0.20 to raise gross proceeds of up to $400,000.

The Company intends to use the gross proceeds from the sale of the Flow-Through Shares for Canadian Exploration Expenses ("CEE"), within the meaning of the Income Tax Act (Canada) ("ITA"), with the Company using its best efforts to ensure that such CEE qualify as a "flow-through mining expenditure" for purposes of the ITA, related to the exploration of the Company's mineral exploration projects located in British Columbia, Canada. The CEE will qualify for the 15% Federal tax credit available to the individual resident anywhere in Canada, and for individual investors resident in British Columbia the 20% provincial income tax credit. The Company expects to renounce such Canadian Exploration Expenses with an effective date of December 31, 2008.

In connection with the private placement, the Company has agreed to pay finders' fees in cash or Non-Flow-Through Shares equal in number to 6% of the number of Flow-Through Shares purchased by investors that may be introduced to the Company by finders.

The private placement and payment of finders' fees are subject to acceptance for filing by the TSX Venture Exchange.

John S. Brock, President

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Forward-Looking Information: 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 exploration drilling, exploration activities and events or developments that Pacific Ridge Exploration Ltd. (the "Company") expects to occur, are forward-looking statements.

Forward-looking statements in this news release include statements regarding the Offering (including the anticipated closing date) and future exploration plans and expenditures. Although, the Company believes 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 forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploration and exploration successes, and continued availability of capital and financing and general economic, market or business conditions. These statements are based on a number of assumptions, including among others, assumptions regarding general business and economic conditions, the timing and receipt of regulatory and governmental approvals for the transactions described herein, the ability of the Company and other parties to satisfy stock exchange and other regulatory requirements in a timely manner, the availability of financing for the Company's proposed transactions and programs on reasonable terms, and the ability of third-party service providers to deliver services in a timely manner. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected on the forward-looking statements. The Company does not assume any obligation to update or revise its 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.

Contact Information

  • Pacific Ridge Exploration Ltd. - Corporate Information
    John S. Brock
    President
    (604) 687-4951
    (604) 688-4670 (FAX)
    Website: www.pacificridgeexploration.com
    or
    G2 Consultants Corporation - Investor Inquiries
    (604) 742-9990 or NA Toll Free: 1-866-742-9990
    (604) 742-9991 (FAX)
    Email: info@g2consultants.com