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Pacific Minerals Closes CDN$9.2 Million Financing


December 19, 2003

CORRECTION FROM SOURCE: A financing announcement distributed on December 15, 2003, contained some incorrect share and ownership statistics that are restated correctly in this release.


BEIJING --- Pacific Minerals Inc. (PMZ: TSXV) announced today that it has closed the two private placement financings, totalling CDN$9.2 million, that were announced on October 24, 2003.

The first private placement consists of three million units at a price of $1.60 per unit, for net proceeds of $4.8 million. Each unit consists of one common share and one-half of a common-share purchase warrant. Each whole warrant is exercisable for one common share at a price of $2.20 per share for two years.

The second private placement, consisting of 2.5 million units at a price of $1.75 per unit, for net proceeds to Pacific Minerals of $4.375 million, was purchased by Ivanhoe Mines Ltd. Each unit consists of one common share and one common-share purchase warrant. Each warrant is exercisable for one common share at a price of $2.20 per share for two years. 

The common shares are subject to a four-month hold period until April 13, 2004.

Pacific Minerals now has approximately 45.6 million shares issued and outstanding, and approximately 58.7 million fully-diluted. Ivanhoe Mines owns 35.5% of Pacific Minerals' issued and outstanding shares, and 43.9% on a fully-diluted basis.

The funds will be used to advance Pacific Minerals' mineral exploration and development projects in China and Mongolia, and for general corporate purposes.

Pacific Minerals is focused on the exploration and development of precious and base metals (platinum, palladium, gold, nickel, and copper) in China and Mongolia. Pacific Minerals' most advanced projects are the 217 Gold Project in Inner Mongolia and the JBS Platinum/Palladium Project in Yunnan Province. The company also is conducting exploration work on prospective properties in Yunnan, Liaoning, Guizhou and Inner Mongolia, in China.

Information contacts: Investors: Bill Trenaman/ Media: Bob Williamson: +1.604.688.5755
Website: www.pacific-minerals.com

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

Forward-Looking Statements: Statements in this release that are forward-looking statements, including the exploration and development of the company's mineral projects in China and Mongolia, are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the company's periodic filings with Canadian securities regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The company does not assume the obligation to update any forward-looking statement.