Pathfinder Resources Ltd.

Pathfinder Resources Ltd.

July 14, 2005 08:15 ET

Pathfinder Starting Exploration Program at Thelon Basin Uranium Project; Completes Close on Portion of Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - July 14, 2005) - Pathfinder Resources Ltd. (TSX VENTURE:PHR) announces the start of the 2005 exploration program at its Thelon Basin Uranium Project in the Northwest Territories, Canada. Ground prospecting and airborne survey teams will be on the property next week to conduct first phase exploration. The summer program, which is budgeted for approximately $400,000, is designed to identify priority targets for follow-up deep penetration geophysical surveys and subsequent drilling for high-grade unconformity uranium deposits.

The exploration program will consist of regional till sampling to identify uranium occurrences, as well as closer-spaced geochemical soil and rock sampling in areas with known radioactive sandstone boulders. A review of assessment data has identified a large number of radioactive boulders on the property; one of the boulder trains is extensive, covering an area approximately 20 km by 3 km, with elevated uranium values in boulders up to 0.13% U3O8. In addition to ground sampling, low level helicopter-borne magnetic and radiometric surveys will also be conducted to fully delineate the extent and distribution of the radioactive boulders.

The significance of radioactive boulders is that they could reflect leakage from deeper uranium deposits at the sandstone/basement unconformity contact. Uranium enriched boulders have been found on several uranium properties in the Athabasca Basin including Cameco Corporation's (TSX:CCO) McArthur River deposit, the world's largest, high-grade uranium deposit. A Thelon Basin compilation map illustrating the radioactive boulders and uranium geochemistry in lake sediments can be viewed at

The Thelon Basin is geologically similar to the Athabasca Basin. The area hosts a number of unconformity and sub-unconformity related uranium prospects with grab sample grades up to 14.68% U3O8. Due to the region's more remote location, it has not yet been extensively explored with the state-of-the-art methods being used to explore the Athabasca Basin located 300 kilometres to the south. With uranium interests covering 2.5 million acres, Pathfinder is the largest landholder in the Thelon Basin. The Company holds an option from Diamonds North Resources Ltd. (TSX VENTURE:DDN) to earn an 80% interest in uranium rights to the property (see news release dated April 14, 2005).

Pathfinder also reports it has completed a partial closing on the non-brokered private placement announced on June 23, 2005. On July 8, 2005 the Company issued 1,285,000 flow-through units and 1,021,666 non flow-through units for gross proceeds of $410,249.90. A finder's fee of 9,600 common shares was paid to Odlum Brown.

Each flow-through unit is priced at $0.20 per unit and consists of one flow-through common share and one non-transferable share purchase warrant. The warrant attached to the flow-through unit entitles the holder to purchase one additional non flow-through common share at a price of $0.25 until December 30, 2005 provided, if both the Company and the holder agree at that time, the shares issued on exercise of the warrant may be flow-through shares.

Each non flow-through unit, priced at $0.15 per unit, consists of one common share and one non-transferable share purchase warrant entitling the holder to purchase one additional common share at a price of $0.20 for one year following the closing.

The securities are subject to a hold period and may not be traded until November 9, 2005.

Pathfinder also reports that on July 4, 2005, the Company acquired an option to earn a 100% interest in the 544 hectare Long Beach property located adjacent to its Dude copper-molybdenum-gold property in British Columbia.

About Pathfinder Resources Ltd.

Pathfinder Resources is a mineral exploration company focused on the discovery of world-class deposits of high-value commodities. With uranium interests covering 2.5 million acres, Pathfinder is the largest landholder in Canada's Thelon Basin region. Pathfinder is also a partner in a three-company syndicate formed to identify and acquire prospective uranium properties in Central America. The Company also holds a 100% option interest in the Dude copper-molybdenum-gold property in British Columbia. Shares of Pathfinder are listed on the TSX Venture Exchange with the symbol "PHR". For further information visit the Company's website at

Victor A. Tanaka, President

Shares Issued: 21,470,991

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

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