Pinnacle Mines Ltd.

Pinnacle Mines Ltd.

October 23, 2006 14:16 ET

Pinnacle Mines Ltd.: New Massive Sulphide Discovery on the Barbara Project Yields High-Grade Intersections of Silver, Lead and Zinc

STEWART, BRITISH COLUMBIA--(CCNMatthews - Oct. 23, 2006) - Pinnacle Mines Ltd. (TSX VENTURE:PNL)(FWB:O7M) and Mountain Boy Minerals Ltd. announce that the drilling exploration program continues to expand the area of silver-lead-zinc mineralization on the Barbara Project (BA Claims) located 30 km east of Stewart in the Skeena Mining Division.

The drill is presently completing two holes off a second pad 100 meters west of pad 1. Upon completion of these holes, the drill will be moved 160 meters east of the first pad. Upon completion of drilling on pad 3, the program will have drilled over a strike length of 260 meters.

Assay results from drill hole BA-9 are shown below:

DDH From(m) To(m) Length(m) Ag g/t Pb% Zn%

BA-9 25.30 35.61 10.31 152.19 4.67 4.05
including 33.23 34.45 1.22 369.6 16.1 13.7
and 39.33 43.90 4.57 60 1.12 1.98
and 63.72 68.90 5.18 74.8 0.60 1.61

True width of the mineralized zone is yet to be determined but is estimated to be 60 to 70% of the reported intersections.

Drilling has intersected visible mineralization in all 12 holes drilled to date with only the results for DDH-2006-BA-3 (see news dated October 18th for results) and BA-9 (above) having been received. Drill hole BA-2006-11 has intersected 13 meters of semi-massive to massive pyrite, sphalerite and galena beneath the exhalite horizon, assays are pending.

The main exhalite horizon is 40 to 50 meters thick and can be traced for over 1 kilometer in a north-south direction and 3 kilometers in an east-west direction. Geological Survey of Canada Open File 2931 indicates that the favorable horizon occurs within a syncline that is up to 3 kilometers across. At present, this mineralized horizon is being drill tested on the west limb of the syncline. Float sampling in 2005 found similar mineralization in the area of the syncline's east limb approximately 3 kilometers east of the zone currently being drilled. Assay results from the 2005 float sampling indicated approximately 12% combined lead-zinc on the east side of the syncline. Company geologists confirm that this high-grade float is not associated with the area of current drilling, indicating other highly mineralized zones elsewhere on the property.

Mountain Boy is drilling 800 meters as part of the agreement to acquire a 50% interest in Pinnacle's BA claims No. 1 to 10. As consideration for earning this interest, Mountain Boy will pay Pinnacle $45,000 as well as a 50% interest in its Stro claims No. 1 to 3, which are adjacent to the BA claims.

The acquisition/disposition agreement between Pinnacle, Mountain Boy and Ed Kruchkowski related to this group of claims is currently under review by the TSX Venture Exchange and the closure of which is subject to regulatory approval. As part of this agreement, Pinnacle agreed to pay Mr. Kruchkowski $4,000 cash and 150,000 shares of Pinnacle for his wholly-owned interest in BA claims 1 to 4.

Further, drilling on the Silver Coin project has now been completed for the season. During 2006, 24,206 meters of drilling was completed in 115 holes. Assays are still pending for 87 holes and results will be released as available over the coming weeks.

E. Kruchkowski, P. Geo. and Alex Walus, P. Geo., are qualified persons under National Instrument 43-101 and are in charge of the exploration programs on behalf of the companies. Drill core and trench samples are assayed by Assayers Canada of Vancouver, BC.

Pinnacle Mines Ltd. is a Canadian based mineral exploration and development company with assets in Canada, China and Mexico. In Canada, Pinnacle holds several properties in Northwestern British Columbia in proximity to numerous past and producing mines including the Silbak-Premier Mine and Barrick Gold's famed Eskay Creek Mine. In China, Pinnacle's focus is in Southeast Yunnan, an area being increasingly considered for its potential to host significant mineral resources including "Carlin" style gold deposits. In Mexico, Pinnacle recently entered into an option to acquire the Tuligtic property, a copper-gold target near Mexico City.

On behalf of the Board of Directors

Andrew W. Bowering, President and CEO

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

Contact Information

  • Pinnacle Mines Ltd.
    Andrew Bowering
    (604) 688-7377
    (604) 688-7307 (FAX)