Mr. Charles Desjardins reports

PISTOL BAY ARRANGES FINANCING

Pistol Bay Mining Inc. has arranged a private placement of up to 25 million units at a price of two cents per unit for total gross proceeds of up to $500,000. Each unit comprises one common share and one-half of one transferable warrant, with each full warrant entitling the holder to acquire an additional common share of the company at a price of five cents for a period of 12 months from the date of issuance.

Proceeds of the private placement will be used as shown in the attached table. Unallocated working capital will be used to maintain operations and cover general and administrative expenses for the next five months. Finders' fees may be payable in whole or in part on the placement pursuant to the policies of the TSX Venture Exchange. The private placement is subject to the acceptance of the TSX-V.

Proposed financing                    $500,000
Proposed use of financing
Geophysical budget                      60,000
TSX filing fees                          3,500
Accounting fees for Q1/Q2                8,000
Audit fees                              48,000
Property payments outstanding           90,000
Core -- warehouse rental payments       14,000
Transfer agent                           2,500
Legal                                    7,000
AGM budget                               5,000
Loan repayments (non-related parties)   60,000
Professional fees (geologist and more)  50,000
Internet/phone                           7,000
Consultants (non-related parties)       30,000
Related parties                         15,000
Unallocated working capital            100,000
Total use of financing                $500,000

About Pistol Bay Mining Inc.

Pistol Bay 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.

We seek Safe Harbor.