Pathfinder Resources Ltd.

Pathfinder Resources Ltd.

June 01, 2005 08:30 ET

Pathfinder Identifies 20 Km Uranium Boulder Train on Thelon Project

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 1, 2005) - Pathfinder Resources Ltd. (TSX VENTURE:PHR) reports that a preliminary review of historic data has identified an extensive, open-ended, 20 kilometre by 3 kilometre radioactive boulder-train on the Company's Thelon Basin Uranium Project. The sandstone boulders contain elevated uranium values up to 0.13% U3O8 and are situated on the western side of the Thelon Property. Based on glacial movement determinations, the source of the boulders appears to be within the Property.

"The existence of radioactive sandstone boulders over such an extensive area is highly encouraging for discovery of uranium deposits," stated Vic Tanaka, President of Pathfinder Resources Ltd. "Radioactive boulders have been found on the McArthur River, Cigar Lake and Midwest Lake uranium properties in the Athabasca Basin. The mere presence of elevated uranium at surface, irrespective of grade, is highly significant as it suggests the potential for a high-grade source at depth."

Mr. Tanaka was exploration manager of Asamera Minerals Ltd., one of the partners in the Athabasca Basin joint ventures that discovered the Cigar Lake and Dawn Lake uranium deposits, as well as participating in the early exploration of the ground on which the McArthur River deposit was later discovered. McArthur River and Cigar Lake are the world's largest, high-grade uranium deposits.

The Thelon Basin is geologically similar to the Athabasca Basin. It hosts a number of unconformity and sub-unconformity related uranium prospects with grab sample grades up to 14.68% U3O8. However, due to its more remote location, it has not yet been explored with the same modern methods being used to explore the Athabasca Basin located 300 kilometres south. Major uranium mining companies known to hold interests in the Thelon Basin region include Cameco Corporation (TSX:CCO) and Cogema Resources Inc.

Added Mr. Tanaka, "We believe the Thelon Basin will attract increasing interest from junior and senior mining companies and become a major region for uranium exploration. As an early player with a substantial land position that is already yielding encouraging results, we have an excellent opportunity to create significant value for our shareholders."

The identification of the anomalous boulders comes from a review of assessment file data of exploration work conducted on a portion of the property in 1979 by Urangesellshaft Canada Limited. The ongoing compilation of all retrievable historic data indicates the existence of a large number of other radioactive boulders in other areas of the Property, as well as elevated uranium values in lake-bottom sediments.

Exploration plans for a 2005 program are currently being formulated and will include an extensive regional till and soil sampling program to identify areas of higher priority to be flown with deep penetration geophysical surveys.

Under the terms of the Thelon Basin Uranium Project agreement, Pathfinder has issued 1,000,000 common shares to Diamonds North Resources Ltd. (TSX VENTURE:DDN) and made a cash payment of $100,000. The securities are subject to a hold period and may not be traded until September 25, 2005. Pathfinder is earning an 80% interest in the Property's uranium rights from Diamonds North. The Thelon Basin property covers approximately 2.5 million acres and is located in the Northwest Territories, Canada.

Mr. L. John Peters, P.Geo. is the Company's qualified person reviewing uranium data for the Thelon Basin Uranium Project.

About Pathfinder Resources Ltd.

Pathfinder Resources is a mineral exploration company focused on the discovery of world-class deposits. The Company holds a 100% option interest in the Dude copper-molybdenum-gold property and has interests in two uranium projects covering large land packages. Pathfinder is listed on the TSX Venture Exchange with the symbol "PHR".

Victor A. Tanaka, President

Shares Issued: 18,154,725

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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