Pacific Ridge Does Rollback and Finances


Further to Pacific Ridge Exploration Ltd.’s news release of July 13, 2009, the company has proceeded with the 1:4 consolidation of its issued common shares without a change of name. Effective at the opening of the market on July 24, 2009, the company’s shares will trade on a consolidated basis under the symbol PEX (with new Cusip No. 694798208). Letters of transmittal will be forthcoming.

The company also announced that it is proposing to sell by way of non-brokered private placements up to 2.5 million flow-through shares to Canadian resident investors, each flow-though share priced at 20 cents to raise gross proceeds of $450,000, and up to 2.5 million units at a price of 20 cents per unit to raise gross proceeds of $450,000. Each unit consists of one common share and one-half of a transferable share purchase warrant, each whole warrant entitling the holder to purchase one common share at a price of 25 cents per share for 12 months.

The company will use the gross proceeds from the sale of the flow-through shares for Canadian exploration expenses (CEE), within the meaning of the Income Tax Act (Canada), with the company using its best efforts to ensure that such CEE qualify as a flow-through mining expenditure for purposes of the Income Tax Act (Canada), related to the exploration of the company’s mineral exploration projects located in Yukon, Canada. The company expects to renounce such CEE with an effective date of Dec. 31, 2009. The company will use the gross proceeds from the sale of the units for general working capital purposes and development of the company’s mineral property portfolio.

In connection with the private placements, the company is proposing to pay finders’ fees in cash (6 per cent) or shares equal in number to 6 per cent of the number of flow-through shares and units purchased by investors that may be introduced to the company by finders.

The private placements and payment of finders’ fees are subject to regulatory approval.

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