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

Papuan Precious Metals Corp.

February 24, 2012 08:00 ET

Papuan Precious Metals Corp.: Outcrop Gold-Copper Results Define New Porphyry Copper Play at Metewoi

KELOWNA, BRITISH COLUMBIA--(Marketwire - Feb. 24, 2012) - PAPUAN PRECIOUS METALS CORP. (TSX VENTURE:PAU)(OTCQX:PAUFF) ("PPM or the "Company") announces that significant gold and copper results from outcrop samples at Metewoi River have opened up exploration potential for high-sulphidation epithermal gold and porphyry copper-gold mineralization (http://www.ppmpng.com/projects/fig-21-metewoi). The Metewoi prospect is 3-4 km southeast of the Kuliuta copper-gold prospect. Significant rock results from Metewoi are presented in Table 1.

Table 1: Gold, Copper, Silver, Molybdenum Results From the Metewoi Prospect
Sample Type Au
(g/t)
Cu
(%)
Ag
(g/t)
Mo
(ppm)
Sb
(ppm)
As
(ppm)
38072 Outcrop 3.67 0.03 5.5 8 378 1095
38071 Outcrop 1.43 0.03 5.2 1 28 370
38069 Outcrop 0.92 0.02 12.7 1 3 50
38070 Outcrop 0.62 0.07 1.6 0 12 1075
38169 Outcrop 0.03 0.78 0.7 86 33 2355
38144 Outcrop 0.01 0.64 1.3 8 0 2604
38042 Outcrop 0 0.25 0 7 0 36
38101 Outcrop 0 0.19 0 8 6 92
38098 Outcrop 0.01 0.17 0 6 4 128
38099 Outcrop 0 0.11 0 4 4 1279
Cutoffs: Au - 0.1 g/t; Cu - 0.1 %; Ag - 1 g/t

Extensive outcrop of quartz-alunite breccia covers a 6 km2 area at Metewoi (http://www.ppmpng.com/projects/woi-1/; http://www.ppmpng.com/projects/woi-2-soil-anomaly/) and has been the target of detailed mapping and grid soil sampling by PPM geologists during the second half of 2011. Chalcocite, covellite and chalcopyrite have been observed in quartz veins within the quartz-alunite breccias. The coincidence of high arsenic and copper rock values and widespread quartz-alunite alteration at Metewoi is not unlike high sulphidation alteration and mineralization in the upper parts of major porphyry copper-gold deposits in New Guinea at Wafi-Golpu and Frieda-Nena and elsewhere in the Indonesian and Philippines archipelagoes.

New Hanover porphyry copper potential

It is important to understand that the porphyry copper potential of New Hanover was unrecognized by previous explorers. Over a short time period, 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). Previous PPM field reconnaissance had 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 now 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 by mid-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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