Mr. Chris McLeod reports

PACIFIC IMPERIAL ANNOUNCES NON-BROKERED PRIVATE PLACEMENT

Pacific Imperial Mines Inc. intends to complete a non-brokered private placement of flow-through units and non-flow-through units, as described below.

Private placement

The private placement will consist of the sale of: (i) up to 33,333,333 flow-through units of the company at a price of 7.5 cents per FT unit for gross proceeds of up to $2.5-million; and (ii) up to 20 million non-flow-through units of the company at a price of 7.5 cents per NFT unit for gross proceeds of up to $1.5-million.

Each FT unit will be composed of one common share of the company to be issued on a flow-through basis under the Income Tax Act (Canada) and one non-flow-through common share purchase warrant. Each warrant will be exercisable by the holder thereof to acquire one non-flow-through common share of the company at an exercise price of 10 cents per NFT share for a period of five years from the date of issuance of the warrant. The warrants will be transferable.

Each NFT unit will be composed of one NFT share and one warrant with identical terms to the warrants underlying the FT units.

No finders' fees will be paid for the financing.

The company intends to use the gross proceeds of the private placement toward mining exploration expenditures and for general working capital purposes. The company will use the gross proceeds from the issuance of FT shares to incur Canadian exploration expenses and qualify as flow-through mining expenditures as such terms are defined in the Income Tax Act (Canada).

The securities issued pursuant to the private placement will be subject to a four-month hold period commencing from the applicable closing date of the private placement in accordance with applicable securities laws. The private placement is subject to certain closing conditions, including the approval of the exchange.

About Pacific Imperial Mines Inc.

Pacific Imperial is a mineral exploration company based in Vancouver, Canada, engaged in the acquisition, exploration, evaluation and development of mineral properties in an acceptable risk environment. The company's current focus is on the Babine and Fenton properties in British Columbia.

We seek Safe Harbor.