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

Papuan Precious Metals Corp.

February 27, 2012 08:05 ET

Papuan Precious Metals: Discovery Hole Intersects 70.00m Grading 0.10 % Cu and 6.65m of 0.77% Cu, 1.84 g/t Au at Urua Creek Prospect

KELOWNA, BRITISH COLUMBIA--(Marketwire - Feb. 27, 2012) - PAPUAN PRECIOUS METALS CORP (TSX VENTURE:PAU)(OTCQX:PAUFF) ("PPM or the "Company") announces partial results from the uppermost 79m and selected mineralized intervals in drill hole URD002 at the Urua Creek prospect, Mt Suckling project. Drill hole URD002 (collar location: 699284mE, 890612mN; azimuth: 000 degrees; dip: 60 degrees) successfully tested both gold and copper soil anomalies and long intervals of gold and copper trench values in Trenches 1 and 2, Line 10 of the Urua Creek grid. This drill hole is the first to intersect the Urua Creek diatreme breccia, as part of a three hole drill program designed to test a significant chargeability anomaly identified by a 3D-Induced Polarization ground geophysical survey completed last fall. The chargeability anomaly is found within the 1700m x 900m breccia, which hosts the gold and copper mineralization (see PPM news release dated September 28, 2011).

Results received to date from Discovery HoleURD002 are summarized in the following table:

Hole URD002 Assay Results

Interval Width Grade Cu Grade Au Comments
8.00 - 78.00 m 70.00 m 0.10 % Cu 0 - 8.00 m scree
203.55 - 203.70 m 0.15 m 1.15 % Cu 0.26 g/t Au Massive sulphide lens
208.85 - 215.50 m 6.65 m 0.77 % Cu 1.84 g/t Au Massive sulphide lenses & stockwork
Incl. 1.10 m 2.16 % Cu, 9.60 g/t Au Massive sulphide
Incl. 0.50 m 0.55 % C, 13.59 g/t Au Massive sulphide
& 0.60 m 3.49 % Cu 6.20 g/t Au Massive sulphide
244.10 - 246.10 m 2.00 m 0.31 % Cu Vein
Cutoffs: 0.1 % Cu; 0.1 g/t Au

Additional results will be reported when they become available. Samples were sent to Genalysis Laboratory in Lae, PNG, for sample preparation prior to pulps being sent to Townsville, Australia for analysis. Gold analyses were completed by standard 25g lead collection Fire Assay followed by Flame Atomic Absorption Spectrometry. Copper analyses involved multi-acid digest including hydrofluoric, nitric, perchloric and hydrochloric acids in Teflon tubes. Analyses were completed by Inductively Coupled Plasma Optical (Atomic) Emission Spectrometry. High-grade gold and copper samples were repeat assayed for ore grade.

Further details of the prospects identified to date at the Mt Suckling project are available at (http://www.ppmpng.com/projects/mt-suckling/).

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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