Pitchstone Exploration Ltd.
TSX VENTURE : PXP

Pitchstone Exploration Ltd.

August 02, 2006 11:00 ET

Pitchstone Exploration Ltd.: Key Hornby Bay Basin Target Acquired

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 2, 2006) - Pitchstone Exploration Ltd. (TSX VENTURE:PXP) and Triex Minerals Corporation (TSX VENTURE:TXM) are pleased to announce that their 50:50 joint venture (the "Joint Venture") has expanded its holdings in the Hornby Bay Basin, Nunavut, by acquiring the Kendall River Property. Kendall River covers a significant uranium boulder train located 15 km southeast of the Mountain Lake uranium deposit.

The Joint Venture has executed an agreement to purchase 100% of the Kendall River Property from Aramis Ventures Inc., a private Alberta corporation, by making a cash payment of $25,000 and incurring exploration expenditures of $50,000. Aramis will retain a 5% NSR royalty in all metals and minerals produced from the property, with the Joint Venture having the right to purchase one half the retained royalty for $2,500,000. The property consists of four contiguous claims covering 4,180 ha.

A $350,000 reconnaissance program is currently underway on the Joint Venture's Hornby Bay Basin properties. It will include airborne radiometrics, detailed mapping, boulder prospecting, ground geophysics and soil geochemistry on the Kendall River Property to refine drill targets in the source area. A reconnaissance drill program is anticipated for the spring of 2007 to test the Joint Venture's top tier targets, including the recently drill-intersected zone at Jenny Lake (see July 18, 2006 news release), and the boulder trains at Dismal Lake and Kendall River.

Sandstone boulders in the Kendall River train are from the same unit of the Dismal Lakes Group as that which hosts the Mountain Lake Deposit. A total of 145 radioactive boulders form a tightly defined northeast-trending train 3,400 m long and up to 230 m wide. The boulders were discovered by regional exploration in the 1970s by ESSO Resources Canada, but the property was not drill-tested. The boulders are angular to sub-angular and contain disseminated uranium oxide minerals with minor pyrite and chalcopyrite. A regional structure parallels the train immediately to the south.

Total Joint Venture land holdings in the Hornby Bay Basin now cover approximately 223,000 ha. The Mountain Lake uranium deposit is located 100 km southwest of the coastal community of Kugluktuk (formerly Coppermine), Nunavut. The stratabound deposit is hosted within sandstone of the Proterozoic Dismal Lakes Group in the Hornby Bay Basin. The Mountain Lake deposit contains an Inferred Resource of 8.2 million pounds U3O8 with an average grade of 0.23% U3O8 contained in 1.6 million tonnes of rock (See NI 43-101 Technical Report on SEDAR). Depth of mineralization is between 28 and 136 metres. The deposit is not fully delineated and the estimated resource does not include mineralization recently reported (see July 18, 2006 news release). A revised resource estimate will be completed this fall once all data from the recent drill program have been received and integrated with historic data.

Triex is operator of the Joint Venture. Allan Armitage, Ph.D., P.Geo, is a Qualified Person as defined by National Instrument 43-101 and is responsible for program design and quality control of exploration undertaken by Triex in the Hornby Bay Basin. This release has been reviewed by Ted Trueman, M.Sc., P.Eng., P.Geo., a Qualified Person as defined by National Instrument 43-101.

Pitchstone is an aggressive uranium exploration company with eight projects in the eastern Athabasca Basin, Saskatchewan, five projects in the Hornby Bay Basin, Nunavut and NWT, and an exploration partnership with Cameco and Motapa Diamonds in the Franceville Basin, Gabon.

On behalf of the Board,

E.A.G. (Ted) Trueman, CEO and Director

This news release may contain assumptions, estimates, and other forward-looking statements regarding future events. Such forward-looking statements involve inherent risks and uncertainties and are subject to factors, many of which are beyond the Company's control, that may cause actual results or performance to differ materially from those currently anticipated in such statements.


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

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