Pinnacle Mines Ltd.
TSX VENTURE : PNL

Pinnacle Mines Ltd.

August 25, 2005 09:01 ET

RETRANSMISSION-Pinnacle Mines Ltd.: Drilling Intersects 50 Feet of One Ounce Per Ton Gold and Six Ounces Silver Per Ton Within a 290 Foot Intersection of 0.2 Ounces Per Ton Gold

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 25, 2005) - Pinnacle Mines Ltd. (TSX VENTURE:PNL) and Mountain Boy Minerals Ltd. announce gold-silver assays from the latest drill holes testing the newly discovered Main Breccia Zone on the Silver Coin property near Stewart, BC. Visible gold was noted in several different zones within these drill holes.

The most recent results from drill holes DDH-2005-48 through 52 continue to extend the mineralization of the Main Breccia Zone. Reported drill holes DDH-2005-48 and 49 are within the Kansas claim located along the south end of the known Main Breccia Zone while DDH-2005-50 to 52 are within the Big Missouri claim, 133 meters north of the Kansas claim border.

DDH-2005-52 at -60 degrees intersected a zone of mineralization starting at 88.03 meters and finishing at 207.01 meters for 118.98 meters (390 feet) grading 5.4 grams per tonne gold (gpt) (see table below), including a section of 15.2 meters or 49.9 feet grading 34 gpt or 1.0 ounces/ton. DDH-2005-52 was lost in heavily mineralized faulted breccia assaying 6.79 gpt gold over the last 1.52 metres of the hole. DDH-2005-52 is the most northerly hole drilled to date and was drilled in an area that was previously untested. The hole encountered a new style of mineralization consistent with the high gold and silver bearing mineralization that was mined in the upper levels of the nearby Silbak-Premier mine. Visible gold is found within a very fine grained sulphide that gives the quartz in the core a black mottled appearance. Any drill intersection of this type of mineralization in DDH-2005-52 has yielded high gold and silver assays and correlates well with the black sulphide mineralization that was present in the Silbak-Premier mine.

In addition, as drilling has progressed to the north, the Main Breccia Zone becomes much wider and may be greater than 100 meters in true width. All drill holes testing the zones (which appear to dip 70 degrees to the west) are drilled from west to east and intersections reported are close to true width.

DDH-2005-51 at -60 degrees had a number of significant intersections (see table below) and DDH-50 at -60 degrees had an intersection of 39.55 meters before being lost due to intense faulting within the breccia. DDH-2005-48 at -70 degrees had several intersections with the main one having 36.58 meters grading 1.97 gpt of gold (see table below). DDH-2005-49 at -75 degrees had five intersections with the main one having 20.53 meters grading 1.88 gpt of gold (see table below).



Results From The Kansas Claim

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From To Width Au Ag Cu Pb Zn
DDH # meters meters meters g/t g/t % % %
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2005-48 62.2 98.78 36.58 1.97 11.09 0.02 0.31 0.51
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including 94.21 98.78 4.56 4.91 14.8 0.03 0.2 0.82
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and 151.98 156.71 5.02 2.13 5.9 0.01 0.08 0.46
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2005-49 17.99 21.04 3.05 2.23 2 0.003 0.04 0.09
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and 64.16 84.76 20.53 1.88 6.5 0.008 0.09 0.37
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and 93.6 101.83 8.21 1.45 3.95 0.003 0.05 0.144
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and 139.94 142.98 3.05 1.17 1.3 0.004 0.01 0.02
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and 147.56 149.09 1.52 2.06 4.2 0.01 0.04 0.61
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and 152.13 154.42 2.29 2.2 3.7 0.005 0.03 0.18
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Results From The Big Missouri Claim

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From To Width Au Ag Cu Pb Zn
DDH # meters meters meters g/t g/t % % %
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2005-50 39.33 40.85 1.52 2.1 8.6 0.031 0.22 0.52
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and 129.27 167.38 39.55 1.33 3.19 0.004 0.024 0.08
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2005-51 62.2 63.72 1.52 1.91 4.8 0.002 0.02 0.04
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and 75.91 77.44 1.52 1.09 5.5 0.003 0.01 0.06
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and 78.96 80.49 1.52 1.02 16.8 0.004 0.03 0.13
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and 88.11 91.16 3.05 2.24 8.95 0.05 0.025 1.85
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and 98.78 104.88 6.1 1.58 41.2 0.29 0.18 5.7
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and 110.98 114.02 3.04 1.93 8.95 0.018 0.28 0.16
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and 123.17 138.41 15.2 1.11 20.73 0.03 0.036 0.65
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and 179.57 185.67 6.08 1.22 2.5 0.007 0.093 0.155
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2005-52 88.03 207.01 118.98 5.4 32.76 0.01 0.16 0.33
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including 155.18 170.43 15.25 34.05 206.7 0.03 0.34 0.64
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These intersections increase the overall potential of the project as the strike length has increased to over 233 meters and the depth of the intersection has increased as well to 200 meters. The structure of the Main zone is continuing to develop a striking resemblance to the mineralized structures associated with the past producing Silbak-Premier mine which lies only a few kilometers to the south.

Drilling on this zone will continue to the north and south of the presently outlined mineralized areas. The The Company plans to drill an additional 3000 m in 10-15 holes to extend the Main Breccia Zone a further 300-450 m over the next two months. Several other promising zones of mineralization on the property have been discovered by prospecting and trenching and this work will also continue until freeze-up.

The Big Missouri claim is part of the Silver Coin option/joint venture between Mountain Boy and Pinnacle. The Kansas claim is the subject of an option/joint venture with Tenajon Resources Ltd., pursuant to which Pinnacle and Mountain Boy are earning a 60% interest through the expenditure of $1,000,000 on exploration over four years. The Companies can jointly earn a 70 per cent interest in the Kansas claim by exercising an option to deliver a feasibility study within four years of earning the initial 60%.

The Silver Coin property is strategically situated 24 kilometers north of Stewart on the Granduc road. The infrastructure in the area is excellent with good roads, power and water.

The Main Breccia Zone mineralization is typified by an early stage of pervasive sericite-pyrite-quartz alteration; a main stage of quartz stockworks, breccias and silicification carrying gold associated with disseminated pyrite, sphalerite, galena and chalcopyrite; and a late stage of semi-massive sulphide pods carrying significant base metal values (DDH-51 for example). Mineralization at Silver Coin is consistent with the two main types of mineralization at the nearby, former producing Silbak-Premier mine which produced 4.7 million tons that yielded approximately 1.8 million ounces gold, 41 million ounces silver, 4.2 million pounds copper, 62 million pounds lead and 20 million pounds zinc.

Assay results from drill holes are released when received from Assayers Canada and the assay data has been through internal validation of quality assurance and quality control. Pinnacle Mines has established a sampling and assay control program with blind insertion of assay standards; noting that there is also an internal quality control and quality assurance program in place at Assayers Canada that includes blanks, duplicates and standards.

E. Kruchkowski, P. Geo., a qualified person under National Instrument 43-101, is 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 whose activities are international in scope. Its primary assets are located in both Canada and China. 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 current focus is in Southeast Yunnan, an area being increasingly considered for its potential to host significant mineral resources including "Carlin" style gold deposits.

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.

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