Papuan Precious Metals Corp.
TSX VENTURE : PAU
OTCQX : PAUFF

Papuan Precious Metals Corp.

February 23, 2012 17:02 ET

Papuan Precious Metals Corp.: Final Copper-Gold Results Received from Kuliuta Prospect

KELOWNA, BRITISH COLUMBIA--(Marketwire - Feb. 23, 2012) - PAPUAN PRECIOUS METALS CORP. ("PPM or the "Company") (TSX VENTURE:PAU)(OTCQX:PAUFF) announces that final results from reassaying the native copper in Hole KUD007, in addition to complete assays for the remaining holes KUD008-KUD011 have been received. From May to October 2011, a total of 2,583 m in 11 holes were completed on the Kuliuta prospect within the New Hanover project. Hole KUD001-006 tested the at-depth potential of gold-bearing hydrothermal breccias identified across a 1,400m x 600m gold in soil anomaly. Holes KUD007 to KUD011 tested a conductivity anomaly detected during the April 2011 3D-Induced Polarization ground geophysical survey, hosted in a high-level intrusive into pyroclastic volcanic rock under the summit of La'mau'sing Mountain.

Dr. David Lindley, PPM's President & COO, stated, "PPM's geological team remains optimistic that potential porphyry mineralization exists in the area of the La'mau'sing copper zone as indicated by disseminated and fracture controlled native and sulphide copper found in the drill core. These five closely spaced holes (KUD007 - KUD011) have tested only a limited lateral and vertical portion of the 'native copper core' associated with locally intense haematisation of what is indicated by airborne geophysics to be a large mineralized system. By analogy with the few other rare examples of native copper-bearing porphyry deposits, native copper typically forms the core of a zoned deposit containing other copper minerals (chalcopyrite, bornite, chalcocite)."

Hole KUD007

Hole KUD007 (azimuth 070°, dip -45°) was drilled on Section 1700N (http://www.ppmpng.com/projects/map). The hole was drilled to a total depth of 316.40m. Native copper-bearing drill core was observed from 116.0m to 272.0m. On November 10th 2011, PPM announced it was resampling and reassaying core from KUD007 to determine a reliable assay method for analysing native copper. SGS Australia Pty Ltd in Townsville was selected because of their experience with native copper analyses with a detection limit range 0.01 to 99% Cu. Details of the SGS method are proprietary. Samples underwent a three stage crushing process prior to pulverising and sub-sampling for analysis. Visible native copper was removed after each crushing stage. The separated native copper was washed and weighed. A large charge of the pulverised material was analysed for copper using AAS and this result integrated with the weight of the native copper to give the total copper content. In the case of the sulphide copper (chalcopyrite) -bearing interval of core from 272m down hole, samples were sent to Genalysis Laboratory Services, Lae, PNG for preparation involving crushing and pulverizing. In their Townsville, Australia laboratory a 1gm charge was digested using hydrochloric and nitric acid and assayed by Inductively Coupled Plasma (Atomic) Emission Spectrometry.

Composite interval assay results from the entire interval of hole KUD007 containing native copper (116.0m - 272.0m) contained less than 0.1% Cu. Significant assay results from the remainder of hole KUD007, drilled to a total depth 316.6m are presented in the following table:

Hole KUD007 Assay Results
From To Width Cu Au
273.0m 274.0m 1.0m 0.93% Cu
274.0m 275.0m 1.0m 0.23% Cu
293.0m 294.0m 1.0m 0.18g/t Au
Cutoffs: 0.1 g/t Au; 0.1% Cu

Hole KUD008

Hole KUD008 (azimuth 070°, dip -45°) was drilled on Section 1700N (http://www.ppmpng.com/projects/map). The hole was drilled to a total depth of 316.10m. Trace native copper was observed in the interval from 52.0m to 308.0m down hole. Samples were dispatched to Genalysis Laboratory Services for analysis (see description under Hole KUD007).

Significant assay results from Hole KUD008 are presented in the following table:

Hole KUD008 Assay Results
From To Width Cu Au
142.0m 143.0m 1.0m 0.13% Cu
257.0m 258.0m 1.0m 0.41g/t Au
261.0m 262.0m 1.0m 0.42g/t Au
277.0m 278.0m 1.0m 0.21g/t Au
278.0m 279.0m 1.0m 0.22% Cu
279.0m 280.0m 1.0m 0.47g/t Au
Cutoffs: 0.1 g/t Au; 0.1% Cu

Hole KUD009

Hole KUD009 (azimuth 070°, dip -45°) was drilled on Section 1750N. The hole was drilled to a total depth of 321.60m. Trace native copper was observed in the interval from 66.80m to 128.10m down hole. Trace chalcopyrite was observed in the interval from 150.40m to 317.65m. Samples were dispatched to Genalysis Laboratory Services for analysis (see description under Hole KUD007).

Significant assay results from Hole KUD009 are presented in the following table:

Hole KUD009 Assay Results
From To Width Cu Au
0.0m 2.0m 2.0m 0.10g/t Au
21.0m 22.0m 1.0m 0.40g/t Au
24.0m 26.0m 2.0m 0.20g/t Au
33.0m 34.0m 1.0m 0.67g/t Au
35.0m 36.0m 1.0m 0.17g/t Au
74.0m 75.0m 1.0m 0.37% Cu -
169.0m 172.0m 3.0m 0.16g/t Au
178.0m 186.0m 8.0m 0.68g/t Au
Including 1.0m @ 1.74g/t Au
2.0m @ 1.23g/t Au
188.0m 189.0m 1.0m 0.10g/t Au
192.0m 193.0m 1.0m 0.17g/t Au
196.0m 198.0m 2.0m 0.14g/t Au
264.0m 265.0m 1.0m 0.14g/t Au
271.0m 272.0m 1.0m 0.11g/t Au
308.0m 309.0m 1.0m 0.11g/t Au
Cutoffs: 0.1 g/t Au; 0.1% Cu

Hole KUD010

Hole KUD010 (azimuth 070°, dip -60°) was drilled on Section 1700N (http://www.ppmpng.com/projects/map). The hole was drilled to a total depth of 394.50m. Trace native copper was observed around 80.0m downhole. Chalcopyrite was observed in narrow breccias at 246.35m. Samples were dispatched to Genalysis Laboratory Services for analysis (see description under Hole KUD007).

Significant assay results from Hole KUD010 are presented in the following table:

Hole KUD010 Assay Results
From To Width Cu Au
26.0m 28.0m 2.0m 0.15g/t Au
146.0m 148.0m 2.0m 0.76g/t Au
150.0m 152.0m 2.0m 0.10% Cu
154.0m 156.0m 2.0m 0.46g/t Au
158.0m 160.0m 2.0m 0.14g/t Au
296.0m 298.0m 2.0m 0.13g/t Au
344.0m 346.0m 2.0m 0.13g/t Au
368.0m 372.0m 4.0m 0.13g/t Au
Cutoffs: 0.1 g/t Au; 0.1% Cu

Hole KUD011

Hole KUD011 (azimuth 070°, dip -60°) was drilled on Section 1750N. The hole was drilled to a total depth of 480.40m. Trace native copper was observed from 58 to 73.90m down hole and from 386.00m to the end of the hole. Trace chalcopyrite was observed in the interval from 150.40m to 350.00m. Samples were dispatched to Genalysis Laboratory Services for analysis (see description under Hole KUD007).

Significant assay results from Hole KUD011 are presented in the following table:

Hole KUD011 Assay Results
From To Width Cu Au
90.0m 92.0m 2.0m 0.12% Cu
108.0m 110.0m 2.0m 0.11g/t Au
154.0m 158.0m 4.0m 0.31g/t Au
164.0m 166.0m 2.0m 0.19g/t Au
168.0m 172.0m 4.0m 0.50g/t Au
258.0m 266.0m 8.0m 0.26g/t Au
Cutoffs: 0.1 g/t Au; 0.1% Cu

Summary of New Hanover Porphyry Copper Potential

The porphyry copper potential of New Hanover was unrecognized by previous explorers. PPM's exploration throughout EL 1566 (PPM 100%) and drilling at Kuliuta Prospect has confirmed New Hanover's porphyry potential. The Company's drilling at Kuliuta has attracted mineral industry interest for its unusual intersection of a native and sulphide copper-bearing sub-volcanic hosted porphyry to depths of ~500m below La'mau'sing Mountain (see news releases of 2 August 2011; 17 August 2011; 23 September 2011; 10 November 2011). PPM field reconnaissance has located 9.67% copper in an outcrop in Metemana Creek, 5 km southwest of Kuliuta, and detailed fieldwork during 2011 at Elang (see news release 28 June 2011) and Metewoi has expanded to four the number of porphyry copper plays in the New Hanover project. Grid soil sampling and detailed mapping covering extensive (~6 km2) areas at both Elang and Metewoi is nearing completion and results will be presented when they become available. The Company intends to advance both prospects to drill targets during 2012.

The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 and reviewed on behalf of the company by Ian David Lindley, President & Chief Operating Officer of Papuan Precious Metals Corp., a Qualified Person. Dr. Lindley has First Class Honours and Ph.D. degrees in Geology, 35 years mining industry experience, and is a Fellow of the Australian Institute of Geoscientists.

This press release contains "forward-looking information" Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause PPM's actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information. Such factors include, but are not limited to: uncertainties related exploration and development; the ability to raise sufficient capital to fund exploration and development; changes in economic conditions or financial markets; increases in input costs; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological or operational difficulties or inability to obtain permits encountered in connection with exploration activities; and labour relations matters. This list is not exhaustive of the factors that may affect our forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information. PPM disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

ON BEHALF OF THE BOARD

David Lindley, President and COO

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