Pan-Nevada Gold Corporation
TSX VENTURE : PNV

Pan-Nevada Gold Corporation

April 10, 2006 09:30 ET

Pan-Nevada Starts Phase I Drilling at Jessup Gold Project; Testing Vein Targets and Disseminated Halo

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 10, 2006) - Pan-Nevada Gold Corporation (TSX VENTURE:PNV) reported today that a drill program of 15-18,000 feet has commenced on its optioned 3.5 square mile Jessup Gold Property located in Churchill County, Nevada.

Eklund Drilling of Reno, Nevada is the drilling contractor for the approximately 50-hole, reverse-circulation Phase I drill program, which is expected to take approximately 45 days.

Results will be publicly released in tranches throughout the program after ALS Chemex, Pan-Nevada's assay laboratory, forwards their findings and results are analyzed by Pan-Nevada and its consultants.

"The first Pan-Nevada drilling program at Jessup is designed to test, among other targets, several strong epithermal vein systems based on numerous high-grade intercepts encountered in previous drilling programs. In addition, drilling will target the expansion of lower-grade bulk tonnage mineralization previously reported," John Watson, Pan-Nevada's President and CEO noted.

"The epithermal gold system identified at Jessup shows strong evidence that its entire vertical zonation is intact." Watson continued, "Previous drilling, coupled with our extensive new three dimensional analysis, indicates that the previously discovered gold mineralization has the potential to be the surface expression of deeper, untested feeder structures."

The mineralized area at Jessup is contained in a large low-sulfidation precious metals system that has not yet been systematically explored and the Company believes that Jessup has excellent potential for expansion.

Michael Gustin, P.Geo, of Mine Development Associates, is the company's qualified person on the Jessup Gold project and oversees the 2006 exploration program. Pan-Nevada has retained Mine Development Associates (MDA) of Reno, Nevada as consultants to assist in exploration, including the upcoming drill program.

MDA is well acquainted with the Jessup Gold Property, having prepared the most current resource estimate for the property, dated February 1998. This is a historical estimate under Canadian National Instrument 43-101 and is not classified into the N.I. 43-101 categories of measured, indicated and inferred resources. According to that report, the resource was identified as "potentially minable material" which the Company considers to refer to an aggregate resource incorporating all categories of measured, indicated, and inferred resources.

The historical estimate is 8,376,564 tons of "potentially minable material" with a grade of 0.024 opt gold and 0.25 opt silver. That amounts to 200,300 ounces of gold, 2,056,700 ounces of silver for a gold equivalent total of 241,400 ounces. The cutoff grade used for the estimate was 0.010 oz Au/ton.

While the Company considers the MDA report to be comprehensive and relevant, the Company has not done the necessary work to allow it to classify the resource into the measured, indicated and inferred categories and, accordingly, is not treating the resource estimate as a N.I. 43-101 defined resource by a qualified person and cautions that this historical resource estimate should not be relied upon. No more recent estimates or data is available to the Company and, according to the underlying owner of the claims, no additional drilling has been completed on Jessup since the MDA report was released.

Pan-Nevada has committed to commission a comprehensive technical report conforming to N.I. 43-101 before the end of 2006.

Pan-Nevada's mission is to enhance shareholder value by acquiring, exploring, and developing advanced-stage projects located within the major gold producing areas of Nevada.

The Company has announced significant resource estimates(i) at two of its projects, Pan and Afgan, both located in the Battle Mountain-Cortez Trend. The Afgan Project is estimated to contain a resource of 1.85 million tons at a grade of 0.027 opt Au (Indicated), and 1.29 million tons at a grade of 0.026 opt Au (Inferred). The Pan Project currently reports a resource of 18.96 million tons at a grade of 0.019 opt Au (Measured and Indicated) and 8.3 million tons at a grade of 0.026 opt Au (Inferred) which does not yet incorporate substantial drilling completed during 2005. Follow-up drilling is planned for the Pan Project later in 2006.

The Company maintains a comprehensive investor-oriented website at www.pannevada.com where technical reports outlining these estimates may be found.

On behalf of the Board of Directors,

John E. Watson, President

(i)Both Afgan and Pan estimates are from N.I. 43-101 compliant technical reports authored by M. Gustin, P.Geo., of Mine Development Associates of Reno, NV. The Afgan report is dated April 28, 2004; the Pan report is dated January 15, 2005.

We seek Safe Harbor.


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