Pacific Ridge Exploration Ltd.

Pacific Ridge Exploration Ltd.

October 18, 2006 08:15 ET

Pacific Ridge Exploration Ltd.: Uranium Drill Intersections at Baker Basin

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 18, 2006) -


Pacific Ridge Exploration Ltd. ("Pacific Ridge") (TSX VENTURE:PEX), Baker Basin Uranium Project operator by way of option/joint venture agreement with Kaminak Gold Corporation ("Kaminak"), has received uranium assays for the first four holes of the 2006 drilling program with intersections reported to 0.56% U3O8 over 5.5 metres.

The first four angle holes were drilled into the KZ zone to intersect uranium mineralization hosted in a vertically-dipping northerly trending structure within the Kazan sandstones in-filling the Baker Basin.

Assay results of the KZ Zone drill holes are tabled below:


HOLE SECTION (m) (m) (% U3O8) (lbs/t U3O8)

KZ 06-01 9065 N 36.0 - 41.8 5.8 0.27 5.4

KZ 06-02 9065 N 79.5 - 91.0 11.5 0.31 6.2
Includes 85.5 - 91.0 5.5 0.56 11.2
95.5 - 97.5 2.0 0.23 4.6

KZ 06-03 2750 E No significant intersections, drilled away
from target

KZ 06-04 9055 N 123.0 - 128.2 5.2 0.40 8.0
Includes 123.0 - 125.0 2.0 0.90 18.0

Drill holes KZ 06-01, KZ 06-02 and KZ 06-04 were collared to the east of the vertical structure hosting uranium mineralization to intersect the zone at approximately 50 metre intervals progressing to depth. All three holes intersected the well-mineralized structure with intersections of improved uranium grades with depth. The above intercepts are down-hole intervals and so far there is insufficient data to determine a true width of the mineralized zone. The uranium mineralization is associated with silicified and hematite altered sandstone within and adjacent to a structurally controlled dyking system.

The KZ zone has been traced over 1 kilometre in length by a radiometric survey. Historic drilling of vertical holes along approximately 350 metres of the 1 kilometre target zone saw several holes with uranium values of 0.84% U3O8 over 5.4 metres at depths less than 100 metres. The Pacific Ridge drilling program has been a first attempt to test mineralized extensions to depth.

Drill hole KZ 06-03, drilled away from and parallel to the structure, did not intersect any significant mineralization within the sandstone host.

Pacific Ridge is of the opinion that the structures within the basin sandstone such as at the KZ zone are structural corridors holding potential for hosting unconformity style uranium mineralization to depth at the basin floor.

The KZ zone is one of three zones within the Baker Basin Uranium Project that has seen drill testing during the period August 30th to date.

Drill holes reported above constitute the initial four holes of the 2006 fourteen-hole program completed this fall. Additional drill hole results from the Baker Basin Uranium Project will be reported when received.

All drill core is split at the project site and forwarded in secured containers to Activation Laboratories in Ancaster, Ontario for uranium analysis. Pacific Ridge employs a QC/QA program that includes random insertion of internal duplicates and blanks into the sample stream as well as check assays by an external laboratory.

Wayne J. Roberts, P.Geo, Vice-President, Exploration for Pacific Ridge, a Qualified Person, has reviewed the technical information presented within this news release.

The Agreement

Under the terms of the option agreement, Pacific Ridge has the right to earn an initial 51% interest by December 31, 2008 by making exploration expenditures totaling $2.0 million and staged payments totaling 400,000 Units, with each Unit consisting of one common share and one 12-month share purchase warrant with an exercise price set in accordance with market at the time of issuance of the Unit. Pacific Ridge will have the right to increase its interest to 60% by spending an additional $1.0 million prior to December 31, 2010. Thereafter, Pacific Ridge and Kaminak Gold Corporation will form a joint venture in accordance with their interests then held. Underlying interests are held by Hunter Exploration Group as to a 2% Net Smelter Return interest, and by Shear Minerals Ltd./Stornoway Diamond Corporation who collectively hold an 8.5% Net Profits Interest. The option agreement with Pacific Ridge pertains to all commodities other than diamonds.

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 "US Securities Act") or any state securities laws and may not be offered or sold within the United States or to US Persons unless registered under the US 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, exploitation activities and events or developments that Pacific Ridge Exploration Ltd. (the "Company") expects to occur, are forward-looking statements. 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 in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, and continued availability of capital and financing and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in 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.

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