PC Gold Inc.

PC Gold Inc.

October 16, 2008 07:30 ET

PC Gold Clarifies Disclosure Regarding Gold Zones in October 7, 2008 News Release

OTTAWA, ONTARIO--(Marketwire - Oct. 16, 2008) - As a result of a review by the Ontario Securities Commission (the "OSC"), PC Gold Inc. (TSX:PKL) ("PC Gold" or the "Company") is issuing the following news release to clarify its previous disclosure in its news release dated October 7, 2008 relating to the completion of a preliminary 3D model of gold zones in the Shaft 1 area of the past producing Pickle Crow Gold Mine (the "News Release"). The News Release referred to gold zones encompassing a minimum rock volume of 11.7 million cubic metres at the Company's Pickle Crow Gold Mine Property, and provided additional disclosure regarding a tonnage factor and grade envelope which when combined, could suggest a resource estimate. This disclosure was determined by OSC to be contrary to section 2.3(1)(a) of National Instrument ("NI") 43-101 and is not supported by a compliant technical report. Accordingly, the Company wishes to retract its previous disclosure in the News Release relating to the rock volume, tonnage factor and grade envelope, as well as the same disclosure in the Powerpoint Presentation referred to in the News Release.

The Company wishes to note that it was not disclosing a resource estimate in the News Release, which specifically stated that no attempt has as yet been made to calculate grade for the zones and volumes defined by the 3D model. The News Release also stated that a NI 43-101 resource calculation will be carried out only upon completion of the Company's current program of confirmation and exploration drilling. The Company also wishes to note that the volumes defined by the 3D model will not necessarily all be included in any future NI 43-101 resource. The Pickle Crow Property does not presently host NI 43101 compliant resources, nor was the Company suggesting it does.

Rather, the purpose of the News Release was to highlight what is considered by management to be a material and positive development for the Company, namely, the completion for the first time in the long history of the Pickle Crow Gold Mine Property of a detailed 3D model of gold zones in the Shaft 1 area, built from carefully digitized data from 699 historical drill holes as well as historical workings. The development of the model is important because it has allowed the Company to outline the apparent size and continuity of zones of mineralization from surface through the historical workings, highlight the potential for expansion of the mineralization, and facilitate the targeting of exploration drilling.

Neil Pettigrew, M.Sc., P.Geo., Vice President, Exploration for PC Gold and a Qualified Person as defined by NI 43-101, has reviewed and approved the technical information in this news release.

The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this release.

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