Piper Capital Inc.
TSX VENTURE : PCL

Piper Capital Inc.

May 26, 2006 10:13 ET

Piper Closes Mineral Property Disposition

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 26, 2006) - Piper Capital Inc. (TSX VENTURE:PCL) ("the Company" or "Piper") announces that further to its news release of February 22, 2006, the disposition transaction pertaining to the Golden Zone and South Estelle mineral projects in Alaska (the "Properties") with Hidefield Gold plc, ("Hidefield") has now closed.

As consideration for the transaction, Piper has received 12,497,042 Hidefield common shares, and Hidefield and certain shareholders, have surrendered 9,114,000 Piper Capital shares, thus reducing the issued share capital of Piper to 7,141,167 common shares outstanding. (The Hidefield shares are subject to a pooling agreement which allows 25% to be sold on a quarterly basis). Hidefield is a publicly-listed mineral exploration company trading on the Alternate Investment Market ("AIM") of the London Stock Exchange under the symbol HIF. The closing trading price of Hidefield on May 25, was 9p (approximately CDN$0.19). Hidefield has also paid Piper $50,000 and has extended to Piper a non-interest bearing six month line of credit of up to $200,000. 1,594,000 shares of Hidefield have been pledged against the line of credit.

The Company anticipates that a further 250,000 shares of Piper may be acquired by Hidefield from Mines Trust Company (the "MT Shares") and then surrendered to Piper on or before July 31, 2006, in accordance with the terms of the Disposition Agreement. Should this be completed, Piper's shares outstanding would be reduced further to 6,891,167, and the Company would hold 12,059,542 shares of Hidefield.

Kenneth Judge, John Prochnau and David Cowan have resigned as directors of the Company as per the terms of the transaction. David Tafel, Pamela Strand, and Dr. Charles Hawley currently comprise the Board of Directors. David Tafel has been appointed President replacing Mr. Judge, and Sean McGrath continues in his capacity as Chief Financial Officer.

This transaction has enabled Piper to retain a very attractive share structure, thereby creating a solid platform to acquire majority-owned mineral exploration projects of merit. The Company is aggressively pursuing additional property acquisitions and intends to add additional experienced Directors as its business plan is implemented.

Further to the March 27, 2006 news release whereby Piper announced the signing of a Letter of Intent with Garson Resources Ltd., in respect of the Copper Prince Property located in Sudbury Ontario, the Company is nearing completion of a definitive agreement.

The statements made in this Press Release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections.

The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.

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