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Pacific Minerals Signs Joint-Venture Agreement for Copper-Silver Project in Guizhou, China

November 20, 2003

Beijing, China --- Pacific Minerals announced today that the company has signed a joint-venture agreement with the Guizhou Geological and Mineral Resources Development Co. Limited, a Chinese state-owned enterprise, to explore for and develop copper and silver deposits in the Emeishan flood basalts of Guizhou Province, southwestern China. The signing ceremony took place in Guiyang, the provincial capital, earlier today. 

The Guizhou Project is comprised of 12 exploration permits covering approximately 900 square kilometres. Pacific Minerals will provide advanced exploration technology and exploration funding to earn a 75% interest in the project. After Pacific Minerals funds the first US$4 million in exploration expenditures, contributions by both partners will be on a pro-rata basis. 

The numerous copper occurrences in Guizhou are a continuation of the extensive mineralized areas being explored by Pacific Minerals in the neighboring Yunnan Province. 

"Signing the Guizhou contract completes Pacific Minerals' plan of controlling a new copper district in southwestern China. It significantly increases our chances of discovering narrow, high-grade and bulk-tonnage, low-grade copper deposits," said Mike Page, Pacific Minerals' Vice President. "It also will allow Pacific Minerals to take advantage of many excellent gold opportunities in geological belts similar to those of the neighboring Yunnan Province." Mr. Page, an internationally recognized nickel sulfide specialist with 30 years' experience in exploration and research, will oversee the exploration team working on the project. 

"Guizhou Province is rich in natural resources and has become a favored province for foreign mining companies," Mr. Xu Dafu, President of the Bureau of Geology and Mineral Resources of Guizhou, said at the signing ceremony. "Based on our work over the past few years, this cooperative area bears big potential. Pacific Minerals has made a wise decision to enter into this area and we expect more cooperation between us in the near future." 

The Guizhou exploration team will be supported by Pacific Minerals' extensive operational base in Kunming, Yunnan Province. Guizhou covers an area of over 176,000 square kilometres in southwest China. It adjoins the provinces of Sichuan to the north, Yunnan to the west, Guangxi to the south and Hunan Province to the east. 

Ivanhoe Mines has the right to earn up to 80% of Pacific Minerals' interest in the Guizhou Project. Pacific Minerals and Ivanhoe Mines are contributing equally on the first US$1 million of expenditure, with the property interest from the Chinese partner divided equally between them. Upon completion of the initial US$1 million of expenditures, Ivanhoe Mines will have an option to acquire 50% of the Pacific Minerals' interest in the project by completing a feasibility study. On completion of the feasibility study, Ivanhoe will then have the option to acquire a further 20% of the company's interest in the project by arranging the funding necessary to take the project to production. 

Pacific Minerals is a Canadian company focused on the exploration and development of precious and base metals (platinum, palladium, gold, nickel and copper) in the People's Republic of China and Mongolia. The company's shares trade on the TSX Venture Exchange, with the trading symbol PMZ.

Investors: Bill Trenaman/ Media: Bob Williamson: +1.604.688.5755
Email: [email protected] 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.