Pacific Minerals Acquires New Gold Project In China

Beijing, China -- Pacific Minerals announced today that the company has formalized its joint venture with Liaoning Non-ferrous Geological Exploration Institute (LNFGEI), a Chinese government entity, to explore for and develop gold, silver, lead, zinc and other minerals on an advanced project in Liaoning Province, northeastern China.

The project comprises 16 exploration licenses covering approximately 480 square kilometres. Pacific Minerals will provide the exploration technology and the initial funding , and has the right to earn an 80% interest in the project. The parties also will jointly explore other opportunities to expand the size of the joint-venture land position.

"This project offers Pacific Minerals' shareholders significant exp loration upside in a rising gold market," said the company's project manager Willem Fuchter. "Our unique exploration alliance with LNFGEI presents significant opportunities for both groups, with a focus on advancing prospective gold and copper projects."

Pacific Minerals has begun an extensive geological reconnaissance and prospecting program on the project, initially focused on three geological target zones. Trenching also has started on a high-priority geochemical anomaly and samples will be sent to LNFGEI's lab in Shenyang, Liaoning's capital city, for assaying. A team of geophysicists are now on site and orientation work has started.

The Liaoning Project was chosen following an extensive due diligence program that commenced late last year. The project is located in a well-known mining area with producing gold mines and other known occurrences of gold, silver, lead and zinc mineralization. Pacific Mineral's Chinese partner has been working in this area for several decades and has amassed an extensive database.

Mr. Fuchter, Ph.D., P. Geo., is the qualified person overseeing the exploration program on the Liaoning Project and supervised the preparation of the information upon which this release is based. Mr. Fuchter is assisted on the project by Anson Xu, Ph.D. in geology, who has many years' experience working on various mineral projects in China.

Elsewhere in China, Pacific Minerals is actively exploring several gold projects in Inner Mongolia, including the 217 Gold Project, and the JBS Platinum/Palladium Project in Yunnan Province. The company has started a regional exploration program over an exploration block covering prospective, large-scale gold, platinum, palladium, nickel and copper projects within the same geologic belt as the JBS Project.

Pacific Minerals is continuing to assess new mineral exploration opportunities in China. The company recently applied for six new exploration concessions in a highly prospective area of Inner Mongolia. Initial results from surface rock-chip samples taken from various locations within the exploration permit area and assayed in China have returned grades of up to 5% copper, 3.6 g/t gold and 84 g/t silver.

Pacific Minerals also announced that on August 6, 2003, the company granted 1,540,000 stock options to directors, officers, employees and consultants of the company. The options are at $0.73 per share for a period of five years, expiring August 6, 2008.

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. Ivanhoe Mines (TSX: IVN) owns approximately 36.3% of the issued and outstanding shares of the company, and 41.4 % on a fully diluted basis. Ivanhoe also has the right to acquire a majority interest in the 217 and JBS projects by completing production feasibility studies and arranging financing to take the properties into production. Ivanhoe also holds a right of first refusal to acquire a majority interest in any new project in China (excluding Anhui Province) undertaken by Pacific during the next nine years.

Information contacts: Investors: Bill Trenaman/ Media: Bob Williamson: +1.604.688.5755
Email: [email protected] Website: www.pacific-minerals.com

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