Pinnacle Mines Ltd. announced current progress and future plans for their advanced-stage Silver Coin gold project located near the town of Stewart, British Columbia. The Stewart Camp comprises highly-altered and mineralized terrain and is the location of increasing exploration activities, including recent drill discoveries of gold-bearing mineralization by others in the vicinity of Silver Coin. Silver Coin is one of the most important gold-bearing projects in the Stewart area, and is situated 5 km north of the past-producing Silbak-Premier gold deposit. Silbak-Premier is hosted in a similar geological environment to Silver Coin, produced 2 million ounces of gold and 43 million ounces of silver over its mine life, and is the subject of renewed exploration. Currently-ongoing work is directed to taking Silver Coin closer to a full feasibility study. The most significant activities include: geologic modeling and interpretations; three-dimensional modeling of the ore body, along with potential open pit morphologies; preliminary engineering studies, including pit configuration, infrastructure, tailings impoundment and waste rock management; preliminary costing of the project; power and water requirements; baseline environmental studies; and metallurgical test work.

Pinnacle Mines Ltd. reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2009. For the quarter, the company has reported loss before write-down of mineral property interests, property investigations, loss on sale of short-term investments, interest and miscellaneous income and loss on sale of equipment of CAD 198,668, loss before income taxes of CAD 432,835, comprehensive loss of CAD 444,310 and net loss of CAD 432,835 compared to loss before write-down of mineral property interests, property investigations, loss on sale of short-term investments, interest and miscellaneous income and loss on sale of equipment of CAD 264,517, loss before income taxes of CAD 263,473, comprehensive loss of CAD 339,951 and net loss of CAD 263,473 or CAD 0.01 per basic and diluted share for the same period last year. Cash applied to operating activities were CAD 423,099 against CAD 387,611 reported last year. In the quarter, the company has incurred CAD 4,145 on purchase of equipment. For the six months, the company has reported loss before write-down of mineral property interests, property investigations, loss on sale of short-term investments, interest and miscellaneous income and loss on sale of equipment of CAD 375,646, loss before income taxes of CAD 610,585, comprehensive loss of CAD 622,060 and net loss of CAD 610,585 or CAD 0.01 per basic and diluted share compared to loss before write-down of mineral property interests, property investigations, loss on sale of short-term investments, interest and miscellaneous income and loss on sale of equipment of CAD 540,188, loss before income taxes of CAD 543,311, comprehensive loss of CAD 2,155 and net income of CAD 106,689 for the same period last year. Cash applied to operating activities were CAD 798,424 against CAD 334,026 reported last year.

Pinnacle Mines Ltd. announced the resignation of Mr. Paul Saxton from the board of directors. The company also provides progress on scoping studies on Silver Coin is advancing. A new geologic model has been constructed utilizing the more than 800 diamond drill holes completed to date. This model has been completed in anticipation of a new resource calculation which will incorporate all drill hole information. Additionally, the metallurgical testing program (being carried out by F.W. Wright Consulting Inc.) has been expanded. Results to date on bench scale metallurgical testing show excellent results with flotation gold recoveries that are consistently above 90% and range up to 96%. Currently, environmental consulting groups are being petitioned to submit proposals for environmental base line studies and a data base for project costs is being compiled. Once completed, more detailed economic assessments, including capital cost estimates and preliminary engineering studies, are planned to take the deposit closer to eventual production. The company is searching for additional precious metals projects, primarily in the SW United States, with the objective of building a high-quality portfolio of gold and silver projects.