Pacific Minerals update,

[Scorpio]

For those interested in this little Junior,

Pacific Minerals took out its' recent highs yesterday on about 3X normal volume.
Powering ahead .24 to 1.64 with a high of 1.70. The correction is over, and with 1.60 behind it, the very real possibility is there for a run to old highs of 2.36.

Part of this is a well respected addition to the board, and the second part is expected results coming out very soon re the most recent drilling program. This is expected in mid Oct. So some investors are front running the results.

Here is the chart: the news update will be added.

[Scorpio]

New Release:

SENIOR CANADIAN MINING EXECUTIVE JOINS BOARD

INDEPENDENT MINE DEVELOPMENT STUDY UNDERWAY AT 217 GOLD PROJECT IN NORTHERN CHINA

SUMMER DRILLING PROGRAM NEARING COMPLETION

(Sept. 29, 2003)

Beijing, China - Pacific Minerals Inc. (PMZ:TSXV) is pleased to announce the appointment of Pierre Lebel to its Board of Directors. Mr. Lebel has had a distinguished career in mining spanning more than 25 years, primarily focused on mine financing, construction and development. Mr. Lebel is Chairman of Imperial Metals Corporation, a Canadian mining company that operates the Mount Polley copper-gold mine and the Huckleberry copper-molybdenum mine, in central British Columbia. He holds an MBA from McMaster University and an LLB from the University of Western Ontario.

"Mr. Lebel is an important addition to the Board of Pacific Minerals," said Daniel Kunz, Pacific Minerals' President. "With his experience in mine development and operations, we expect that he will play an active role in helping the company advance its exploration and development programs in China."



Independent Mine Development Study Started at 217 Gold Project

Pacific Minerals also announced that it has engaged the Chinese Design Institute to carry out an independent mine development scoping study for the 217 Gold Project in China's Inner Mongolia region. The scoping study will provide a preliminary, independent assessment of the economic potential of the project and determine a range of capital and operating costs modelled on a 10,000-tonne-per-day open-pit mining operation. The study will be based on the measured and indicated mineral resources in the project's Northeast Zone, which are summarized below.

The Chinese Design Institute is one of China's leading mine engineering and construction companies, recognized for its experience and capabilities in the development and construction of mines. It is currently involved with the development of the largest operating gold mine in China - the Purple Mountain Mine - as well as a pre-feasibility study for another foreign mining company with a major gold project in China.

The 10,000-tonne-per-day mining operation currently envisioned for the 217 Project would make it one of the largest gold mines in China. The Purple Mountain Mine, operating at a similar gold grade and throughput to that planned for 217, is a profitable operation using Chinese equipment and engineering design. Purple Mountain, which began operations in 1998, produced 233,000 ounces of gold in 2002 mining ore that averaged 0.919 grams per tonne (g/t) gold. The mine reported a profit of approximately US$25 million based on an average gold price of US$309/oz. This level of profitability for a low-grade gold mine demonstrates the capital and operating cost discounts that can be realized in China.

An independent resource estimate for the 217 Project, prepared in March of this year, reported a near-surface gold deposit containing measured and indicated resources of approximately 35 million tonnes grading 0.848 g/t gold, containing 953,000 ounces of gold, at a cut-off grade of 0.6 g/t gold. The independent estimate also reported an inferred resource of 85 million tonnes grading 0.928 g/t gold - an additional 2,543,130 ounces of gold, at a cut-off grade of 0.6 g/t gold. The independent estimate was prepared according to the standards in National Instrument 43-101 by Westervelt Engineering Ltd., under the direction of Messrs. R. Westervelt, P. Eng., and M. Gao, P. Geo., independent qualified persons. Details of the resource estimate are in the company's March 19, 2003, news release .

SGS Lakefield Research Canada Ltd. is testing the heap leachability of the gold mineralization as part of the scoping study. Additional, bulk heap-leach tests will be conducted in China later this year to increase the level of confidence in gold recoveries. Preliminary metallurgical tests performed earlier this year by SGS Lakefield achieved overall gold extraction exceeding 95% for both the oxide and sulphide mineralization using simple gravity separation and cyanidation. The scoping study will determine the optimal processing method between heap leaching and conventional milling and flotation.


Results from Summer Drilling Program Expected in mid-October

Pacific Minerals' summer drilling program at the 217 Project is nearing completion and assay results are expected in mid-October. The current 6,000-metre drilling program will increase the total extent of drilling on the property to approximately 13,900 metres.

The recent drilling has focused primarily on expanding and upgrading resources in the project's Northeast Zone. An "in-pit" resource estimate has been prepared for the Northeast Zone by R.D. Westervelt, P.Eng., of Westervelt Engineering Ltd. The in-pit resource is a portion of the total project resource estimate prepared by Westervelt Engineering in March. Using a 2:1 nominal strip ratio and a cut-off grade of 0.5 g/t gold, the in-pit mineral resource has been estimated at:

Measured and Indicated: 26.6 million tonnes grading 0.96 g/t gold
Inferred: 11.0 million tonnes grading 1.00 g/t gold

The impact of the recent drilling on the project's mineral resources and the potential development of a mining operation will be determined after the drilling program is completed and full assays are received. Measured and indicated resources are that part of a mineral resource for which quantity and grade can be estimated with a level of confidence sufficient to allow the application of technical and economic parameters to support mine planning and evaluation of the economic viability of the deposit. Inferred resources do not have the same degree of verification.

Mr. Westervelt is the qualified person overseeing the exploration program on the 217 Project and supervised the preparation of the information upon which this release is based.

The 217 Project is in the western part of Inner Mongolia, northern China. The site is approximately 125 kilometres northwest of the city of Baotou (population 1.5 million) and 160 kilometres south of Ivanhoe Mines' major copper and gold project, at Turquoise Hill (Oyu Tolgoi), in southern Mongolia. Baotou is the most important industrial city in Inner Mongolia. As a major steel producing centre, most equipment and skilled labour would be available in this centre for mine development. The 217 Project is close to a new highway that is being constructed to provide a transportation route from the Turquoise Hill Project to Chinese railways.

Pacific Minerals has earned a 55% interest in the 217 project and has the right to acquire a further 41.5%, through scheduled payments of US$2.75 million. Ivanhoe Mines has a two-part option to obtain, and increase, an interest in the project. Under the first option, exercisable by May 31, 2004, Ivanhoe can acquire a 60% interest in the project by completing a production feasibility study by July 1, 2006, and maintaining the schedule of payments to the Chinese partner. Upon completion of the production feasibility study, Ivanhoe will have six months to exercise a second option to acquire an additional 16.5% effective interest in the project by arranging financing on or before July 1, 2007, to take the property into production. On commencement of production, Pacific Minerals' 20% retained carried interest will participate subject to Ivanhoe's right to recover its capital costs and its costs of carrying the Pacific Minerals' interest from initial production revenues.

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.

Information contacts: Investors: Bill Trenaman / Media: Bob Williamson: +1.604.688.5755 Email: info@pacific-minerals.com; 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.

Forward-looking statements: Statements in this press release other than purely historical information, including statements relating to the company's future plans and objectives or expected results, constitute forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the company's business, including risks inherent in mineral exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.

END-------------------

[Scorpio]

My initial sell point was hit today. Total gain on this was 187% to date. The original quantity is still intact. I had added to the position at 0.80 Can not so long ago. Used the old high as the reference point and the new C$ exchange rate.

All original capital + profits is out and looking for a new home, while the balance of the position will be left behind to farm more profits.

Big rise today,

From $1.75 yesterday close to $2.26 or + 0.51 and 29% today.

Must be some good news forthcoming out of China on this one.

S

[Scorpio]

Here is the reason for today's move guys. Ivanhoe and Pacific have settled on a new arrangement. This gets back to the buyout last year. Ivanhoe has now agreed to go max earn in of 50% instead of 80%, with payments received in below market paper. There will be some shareholder dilution, yet the market seems to like the arrangement.

Here it is:

Pacific Minerals Inc. October 24, 2003
PACIFIC MINERALS AND IVANHOE MINES
RESTRUCTURE JOINT-VENTURE AGREEMENT
PACIFIC MINERALS ANNOUNCES CDN$9.2 MILLION
FINANCING
BEIJING — Pacific Minerals Inc. (PMZ: TSXV) and Ivanhoe Mines Ltd. (IVN: TSX &
ASX) announced today that the two companies have reached an agreement-inprinciple
to restructure their mineral exploration and development joint venture, the
terms of which were originally announced in Pacific Minerals’ June 2, 2002, news
release.
The revised agreement will reduce from 80% to 50% Ivanhoe’s maximum earn-ins on
Pacific Minerals’ interests in Pacific’s most significant projects in China, including:
· the 217 Gold Project in the Inner Mongolia Region;
· the Dandong (QCZ) Gold Project in Liaoning Province; and
· the JBS Platinum and Palladium development and exploration projects in
Yunnan Province.
Ivanhoe retains the right to earn up to 80% of the available interest in any new
projects acquired by Pacific Minerals in China (excluding properties acquired by
Pacific Minerals in Anhui and Liaoning provinces), under terms similar to those
announced in June, 2002.
The revised agreement also contains a mutual non-compete clause, whereby Pacific
Minerals agrees not to compete for any new mineral properties in the Inner Mongolia
Region and Ivanhoe undertakes not to compete for any new mineral properties in
Liaoning Province.
“Pacific Minerals is entering an exciting new phase of growth and development and
the revised joint-venture agreement provides us with much greater upside potential
on our key projects,” said Daniel Kunz, Pacific Minerals’ President. “It also will
provide us with additional flexibility regarding the potential commercial development
of these projects.”
Ivanhoe has agreed to transfer to Pacific Minerals 50% of its interest in the Shuteen
exploration licence in southern Mongolia. The project has similar geological
characteristics and is within the same copper-rich mineral belt that hosts Ivanhoe’s
Turquoise Hill and Kharmagtai porphyry copper-gold projects. The Shuteen licence
covers approximately 93 square kilometres (36 sq. miles), approximately 100
kilometres east of Kharmagtai. Ivanhoe acquired the right to earn an 80% interest in
Shuteen in early 2002 by undertaking to complete a US$1.5 million exploration
program before December 31, 2004. To date, Ivanhoe has spent approximately
US$1.4 million on the project.
Ivanhoe also may, in appropriate circumstances, make available to Pacific Minerals
future opportunities in Mongolia and China. If any such opportunity falls within a 20-
kilometre radius of Ivanhoe’s then existing properties, Ivanhoe will retain the right to
earn up to 80% of the available interest.
In exchange for the transfer of an interest in the Shuteen Project and for agreeing to
restructure the China joint venture, Pacific Minerals has agreed to issue Ivanhoe 2.5
million Pacific Minerals common shares. Ivanhoe also has agreed to purchase an
additional 2.5 million units of Pacific Minerals at a price of $1.75 per unit, for net
proceeds to Pacific Minerals of $4.375 million. Each unit will consist of one common
share and one common-share purchase warrant. Each warrant will be exercisable for
one common share at a price of $2.20 per share for two years from the closing date.
Pacific Minerals also has arranged a private placement to sell an additional three
million units at a price of $1.60 per unit, for net proceeds to Pacific Minerals of $4.8
million. Each unit will consist of one common share and one -half of a common-share
purchase warrant. Each whole warrant will be exercisable for one common share at a
price of $2.20 per share for two years from the closing date.
The private-placement financing and the agreement-in-principle to restructure the
joint venture are subject to requisite regulatory and board approvals.
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 holds a 100% interest in the Turquoise Hill Project and owns or
controls exploration rights covering approximately 100,000 square kilometres in
central and southern Mongolia. Ivanhoe produces copper, gold and iron ore products
from mines in Asia and Australia.
Information contacts:
Investors: Bill Trenaman/ Media: Bob Williamson: +1.604.688.5755
The TSX Venture Exchange has not reviewed and does not accept responsibility for
the adequacy or accuracy or this release.

END------------

S

[FoundingFathers]

Scorpio,

thanks for the update. And the pick! :Tup:

[Goldhedge]

Just wanted to say that this symbol CA:PMZ works for Pacific Minerals in Big Charts. I sometimes find that some symbols aren't able to be found by some of the chart sites.

http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=CA%3APMZ&sid=0&o_symb=CA%3APMZ&freq=1&time=8

Goldhedge :note:

[Scorpio]

Yer most welcome guys,

I agree with Au-myn that $3 is the next stop, although I have nothing holding this thing back from the next $4-5 Jr. Many of the Jr's are being rerated to levels that are less value oriented. If they prove themselves, they will be justly rewarded. Otherwise, they will quickly return to penny stock status.

This is one that should rise like Nova, Gammon, and so on who have been taken to the 4-5 range. This one is a little behind them in proven resources, but has extraordinary potential in a market that has a dearth of miners. If they had the proven resources this thing would go to $10, barring of course any stupid moves.

BTW, there was more in this stock to the end of day. It eclipsed the 52 week high in grand fashion, finishing comfortably above it. There should be some follow thru Monday, and then the profit taking should kick in. Sometimes, when these things hit afterburners, they don't stop because the story is too compelling.

I have done some searches for more Chinese property miners, and there really is not much out there. If you want a position in the resources of China, the pickings are very limited as many of the mining companies are locally owned, or state owned. Very difficult for an explorer to get a foot hold, yet that is exactly what Pacific has done.

It is really a pretty decent story. I am of the opinion that their efforts are paving the way for others to enter here, including the majors.

S