Mr. Charles Desjardins reports

PISTOL BAY ACQUIRES NEVADA VANADIUM PROJECT

Pistol Bay Mining Inc. has acquired a vanadium project totalling 980 acres in Clark county, Nevada.

Pistol Bay Mining has signed an agreement with arm's-length third parties to acquire, subject to TSX Venture Exchange approval, a 980-acre land package covering two properties known as the vanadium claim group (VCG) project. The VCG project is located in Clark county, Nevada, a historical mining district with 34 reported occurrences of vanadium mineralization. Vanadium is a strategic mineral critical to steel strengthening and utility-scale battery technology.

The mining district was mapped by the USGS in the 1920s. The USGS report makes the following comment, "Vanadates are uncommonly widespread in the district," and significant concentrations of vanadium were shipped from the district in the form of mine concentrates and bulk shipments. The USGS report also mentions a number of other references to vanadium mineralization in the district:

• Concentrates reported to contain 15 per cent V2O5;
• 3.75 per cent V205 over 2.3 metres;
• Three-metre-wide zone estimated to run up to 10 per cent V2O5.

The USGS described the styles of mineralization within the district and recorded a significant number of vanadium occurrences containing vanadinite, descloizite, cuprodescloizite, psittacinite and other unnamed vanadium minerals.

The USGS reported that a number of outcrops from within the two areas covered by the VCG project contained vanadium mineralization and that shipments of vanadium mineralization were made from one of the areas now covered by the VCG project.

Charles Desjardins, president and chief executive officer of Pistol Bay, stated, "We are excited to make this acquisition as it provides the company exposure to the district-scale potential of the area for high-grade vanadium mineralization, low-cost exploration, as well as potential for significant byproduct credits (lead, zinc and silver) from related mineralization in a district that not been systematically explored for vanadium."

Vanadium deposits and target grades

The most important vanadium-bearing minerals are vanadinite (19 per cent V2O5), descloizite (22 per cent V2O5), cuprodescloizite (17 to 22 per cent V2O5), carnotite (20 per cent V2O5), roscoelite (21 to 29 per cent V2O5) and patronite (17 to 29 per cent V2O5).

The vanadium mineralization exposed within the VCG project belongs to the exogenic-type vanadium deposits characterized by typically higher-grade (2 to 10 per cent V2O5) mineralization, and the vanadium minerals descloizite, cuprodescloizite and vanadinite, and occurs in oxidation zones of lead-zinc and copper mineralization.

Details on the vanadium project

Claim group No. 1

Measures approximately 1.6 kilometres by 1.0 kilometre, covering a number of reported vanadium showings exposed in outcrop and in old mine workings. The USGS report stated, "One mine (located within the claim group), however, did ship 14 tons of material to the American Vanadium Company." Information on the vanadium content of the shipment is not available.

Claim group No. 2

The group covers an area measuring approximately 1.6 km by 1.0 km with reported vanadium mineralization and a significant number of old workings. No exploration has been completed on the two groups.

Terms of acquisition

The vendor hereby agrees to sell and Pistol Bay Mining agrees to purchase the claims free and clear of all liens, charges and encumbrances for, and in consideration of, $15,000 (U.S.) plus the sum of $150,000 (U.S.) upon exchange approval, and eight million fully paid and non-assessable common shares of Pistol Bay Mining.

The purchase price is due and payable as follows:

• A cash consideration of $15,000 (U.S.) paid on the date of execution of this agreement;
• $50,000 (U.S.) upon exchange approval;
• $100,000 (U.S.) six months postexchange approval;
• Eight million fully paid and non-assessable shares of Pistol Bay Mining on the five days following the date this agreement are accepted for filing by the TSX Venture Exchange;
• A 2-per-cent net milling return royalty on the properties, including the right of Pistol Bay Mining to purchase 1.5 per cent of the royalty at any time for $1 (U.S.).

The technical information in this news release was prepared and/or reviewed by Glen Macdonald, PhD, PGeo, a qualified person as defined in National Instrument 43-101.

About Pistol Bay Mining Inc.

Pistol Bay Mining is a diversified junior Canadian mineral exploration company with a focus on zinc and base metal properties in North America. The company is also actively pursuing the right opportunity in other resources to enhance shareholders value.

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