Patent Enforcement and Royalties Ltd.

Patent Enforcement and Royalties Ltd.

March 03, 2005 16:04 ET

Pearl Provides Further Details on Yorke Hardy Project




MARCH 3, 2005 - 16:04 ET

Pearl Provides Further Details on Yorke Hardy Project

TORONTO, ONTARIO--(CCNMatthews - March 3, 2005) - At the request of the
Ontario Securities Commission, Patent Enforcement and Royalties Ltd.
("PEARL" or the "Company") (TSX VENTURE:PAL) wishes to clarify the press
releases of January 18, 2005 and January 20, 2005 and provide further
details with respect to the mineral resource located in the Yorke Hardy
deposit (the "Deposit"). The resource was evaluated by Giroux
Consultants Ltd. pursuant to a report dated December 17, 2004 as amended
January 12, 2005 and February 16, 2005 entitled "A Resource Evaluation
of Yorke-Hardy Molybdenum-Tungsten Deposit" (the "Report"). For the
purposes of the disclosure in this Press Release, Gary Giroux P. Eng. is
the Qualified Person (the "QP") in accordance with NI 43-101.

In the Company's press release of January 20, 2005, the Company reported
resource estimates in the measured, indicated and inferred categories at
three cut off grades and provided a table of resource estimates at cut
off grades from 0.1% MoS2 to 0.6% MoS2. The Company wishes to advise
that at this point in time without having the benefit of any economic
analysis, management is considering the viability of two different
underground mining scenarios; a larger tonnage milling operation with
onsite processing facilities (a "Milling Operation") and a smaller
tonnage operation hauling ore to another mill for processing (a
"Haul-away Operation"). In consultation with management, the QP is of
the opinion that a reasonable cut off grade for a Milling Operation
would be 0.2% MoS2. Based upon the table in the Report which was
disclosed in the January 20, 2005 Press Release, at 0.2% MoS2 the
Deposit includes a mineral resource estimate of 82,980,000 tons in the
measured and indicated categories with a grade of 0.295% MoS2
representing 489,580,000 pounds of MoS2 or 293,460,000 pounds of Mo or
molyoxide. The QP is further of the opinion that a reasonable cut off
grade for a Haul-away Operation would be 0.3% MoS2. At 0.3% MoS2 the
Deposit includes a mineral resource estimate of 25,450,000 tons in the
measured and indicated categories with a grade of 0.424% MoS2
representing 215,820,000 pounds of MoS2 or 129,360,000 pounds of Mo or
molyoxide. Until an economic evaluation is done and a mine plan is
completed neither the preferred method of mining nor the economic
cut-off for the deposit are known.

Pursuant to the Report, in order to advance this project to a
feasibility stage, the following steps have been recommended by the QP:

- Input geology from the drill logs and build a geologic model to help
constrain grades in the resource estimate.

- Complete a scoping study. Take the block model results from this
estimate and have a mining engineer design a mine plan. Within the
mineral resource, determine the quantity of blocks classed as inferred
and determine if any infill drilling is required and if so where.

- Rehabilitate the underground access and prepare underground drill

- For infill holes design a sampling protocol to ensure the coarse
grained mineralization is sampled.

- Start a baseline environmental study.

- Complete a community relations study.

The QP has recommended a budget for this work as follows:

Phase 1 $
Begin Environmental Baseline Study 250,000
Community Relations Study 100,000
Rehabilitate Underground Access 300,000
Infill Drilling and assays 2000 m @ $100/m 200,000
Scoping Study 250,000
Contingencies (approx 10%) 100,000
Total $1,200,000

As announced on February 11, 2005 and February 23, 2005, PEARL is
seeking to raise up to $10,000,000 pursuant to a brokered private
placement and the funds raised from this offering will be used to
complete the Phase 1 recommended program of the QP pursuant to the
Report with funds available to further advance the project based upon
the results of the Phase 1 program. The QP has prepared an amended
technical report reflecting the reasonable cut-off grades for the two
mining scenarios currently being contemplated by management which will
be filed on SEDAR.

Completion of the acquisition of the Yorke Hardy Property (the
"Transaction") is subject to a number of conditions, including but not
limited to, Exchange acceptance and disinterested Shareholder approval
of the Company's Change of Business. The Transaction cannot close until
the required Shareholder approval is obtained. There can be no assurance
that the Transaction will be completed as proposed or at all. Investors
are cautioned that, except as disclosed in the Management Information
Circular to be prepared in connection with the Change Of Business, any
information released or received with respect to the Change Of Business
may not be accurate or complete and should not be relied upon. Trading
in the securities of PEARL should be considered highly speculative.

Shares outstanding: 23,259,000


Contact Information

    Patent Enforcement and Royalties Ltd.
    Ian McDonald
    (416) 860-1438
    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.