DENTON-RAWHIDE MINE

Pacific Rim Mining Corp. has accepted an offer from its Denton-Rawhide joint venture partner Kennecott Rawhide Mining Company to purchase the assets the Company holds through its 49% interest in the joint venture. Total compensation for these assets includes US $3.1 million plus the free cash flow from 49% of all gold and silver production from the Denton-Rawhide operation, located in Nevada, USA, through to December 31, 2008. “The sale of our Denton-Rawhide interest strengthens our ability to protect our cornerstone El Dorado gold project through the current global economic crisis,” says Tom Shrake, President and CEO.

Pacific Rim's share of production from the operation during fiscal 2007 was 11,768 ounces of gold and 108,246 ounces of silver at a total cash production cost of $378 per ounce of gold produced. Fiscal 2007 gold production from Denton-Rawhide was approximately 22% lower than in fiscal 2006 and 47% lower than in fiscal 2005. This decline in production represents the natural slowdown in recovery that occurs in the residual leach phase of a heap leach operation.

The results of an updated El Dorado resource estimate incorporating the Balsamo deposit are expected by December 2007, and work on the feasibility study, which is approximately 2/3 completed, will resume shortly thereafter. No measurable progress was made by MARN in granting approval for the El Dorado EIS, a major requirement of the subsequent application for a mining permit, since its submission in October 2006.