HUOGEQI

Pacific Ore Limited reported operational results for the year ended June 2010. The joint venture partners have commenced the process of decommissioning of the Huogeqi pilot plant and deregistering the Huogeqi Joint Venture and associated companies registered in Mongolia. At Lake Grace project, Western Australia soil sampling programs have been completed and succeeded in delineating gold in soil anomalies. At Tampia project Western Australia a soil sampling program has defined several areas for rotary air blast drilling to determine the source of the surface anomalism.

Pacific Ore Limited advises that Chinese joint venture partner, Bayannoer Western Copper Co Ltd (‘BWCC’), a subsidiary of Shanghai-listed Western Mining Co. Ltd, (WMC) has terminated a Memorandum Of Understanding (‘MOU’) dated 26 February 2009. The MOU was initially subject to a 21 day due diligence period by both parties, however on 10th March 2009 the Company conceded to an extension of the due diligence period until 30 June 2009. The Company has recently held discussions with WMC representatives in China regarding the MOU. WMC have advised the Company that they are currently not in a position to proceed with the MOU, and as such both parties have agreed to terminate the MOU. Recent management changes within WMC have resulted in the Huogeqi Joint Venture being less of a priority as a new development for the Huogeqi mine operations. Pacific Ore is currently reviewing other funding alternatives available and will update the market when possible. In accordance with the pilot plant schedule the leaching phase is now complete and the Joint Venture partners of the Huogeqi project are decommissioning the Pilot Plant. The Chinese Feasibility Study is scheduled for final completion during the September quarter.

Pacific Ore reported that a comprehensive sampling campaign of the Huogeqi (mongolia) pilot heap operations has been completed.