Mr. Mark Klein reports

PACIFIC ARC RESOURCES LTD. ANNOUNCES PROPOSED NON-BROKERED PRIVATE PLACEMENT

Pacific Arc Resources Ltd. proposes to complete a non-brokered private placement of up to one million common shares of the company at a price of five cents per share for gross proceeds of up to $50,000.

The offering may close in one or more tranches. Completion of the offering is subject to a number of conditions, including the acceptance of the offering by the TSX Venture Exchange. All shares issued under the offering will be subject to a statutory hold period of four months and one day from the date of issuance.

No finders' fees or commissions are expected to be paid in connection with the offering.

Certain insiders of the company may participate in the offering. Any such participation would constitute a related party transaction within the meaning of Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions. The company expects to rely on the exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) thereof, on the basis that the fair market value of any insider participation in the offering would not exceed 25 per cent of the company's market capitalization.

The company intends to use the net proceeds of the offering for general working capital purposes.

We seek Safe Harbor.