Vancouver, British Columbia (September 13, 2010) – On September 8, 2010 Tagish Lake Gold Corp. (“Tagish Lake”) announced the results of the 2009 geophysical survey conducted on Tagish Lake’s Skukum Mineral District property. Tagish Lake stated that the results had only recently been made available to it. New Pacific wishes to provide some background to the release of this information.
From mid-2009, a team of geologists conducted geological exploration work on the Skukum property under the apparent auspices of YS Mining Company Inc. (“YS Mining”), its parent company, Yukon-Shaanxi Mining Company Inc. (“Yukon-Shaanxi”), or Yukon Shaanxi’s joint venture partners, Yukon-Nevada Gold Corp. (“Yukon-Nevada”) as to 41%, and Northwest Mining and Geology Group Co., Ltd. for Nonferrous Minerals (“NWME”) as to 59%. This exploration work was partially described in press releases issued by Tagish Lake dated May 19, 2009 and August 11, 2009. In the May 19, 2009 press release Tagish Lake stated:
“Yukon Shaanxi reports that they expect to have a team of 15 Chinese geologists in the Yukon in June 2009, eager to be immersed in the geology and exploration of the Skukum property.”
In its August 11, 2009 press release Tagish Lake stated:
“When the results are made available to the Company, the results will be disseminated in a news release.”
In its management’s discussion and analysis for each quarter since June 2009 Yukon-Nevada has consistently discussed the ongoing exploration work at the Skukum property by its Yukon-Shaanxi joint venture. Most recently, in its MD&A for the second quarter ended June 30, 2010 (filed August 16, 2010), Yukon-Nevada reported:
“During 2009, the Company, in conjunction with the joint venture partner, Northwest Mining and Geology Group Co., Ltd. for Nonferrous Minerals (“NWME”) performed geological and geophysical work at the Skukum property owned by Tagish Lake Gold.”
As the exploration work results appear never to have been disclosed to the public, New Pacific wrote a letter to Tagish Lake (copied to YS Mining) on September 2, 2010 requesting that the results of the exploration activities, if they were in Tagish Lake’s possession, be released to the public, and if the results of the 2009 exploration activities were not in Tagish Lake’s possession, Tagish Lake should take immediate steps to obtain such information. Receiving no response to its letter from Tagish Lake or YS Mining, New Pacific sent a letter to the staff of the British Columbia Securities Commission (“BCSC”) on September 3, 2010 requesting that the BCSC staff conduct an investigation and compel disclosure of the information (the “Investigation Request Letter”).
On September 8, 2010 Tagish Lake announced the results of the work conducted on the property as follows:
“A total of five, low contrast, combination chargeability and resistivity anomalies, were identified and interpreted as potential silicified or mineralized zones for exploration follow-up” (the “September 8 Press Release”).
That disclosure apparently represents the work of an exploration team, including 15 geologists, over an extensive period of review of the Skukum property.
The September 8 Press Release refers to an explanatory map on the Tagish Lake website. The map, (dated March, 2010), states that it is based on data collected by the Northwest Geological Exploration and Mining Bureau for Non-Ferrous Metals (the parent entity of NWME) and is marked with the logo of Yukon-Shaanxi.
Prior to the dissemination of the 2009 exploration results in the September 8 Press Release, the following events occurred:
â€� In 2009 Yukon-Shaanxi attempted to acquire Tagish Lake through an amalgamation on a 40 for 1 basis, using its subsidiary YS Mining. That proposed amalgamation did not receive approval from the TSX-V and was subsequently terminated by YS Mining in September 2009.
â€� On November 19, 2009 Tagish Lake announced that YS Mining had acquired all of the interests of Macquarie Bank Limited in the CAD$1,500,000 secured feasibility finance facility provided by Macquarie to Tagish Lake.
â€� On November 26, 2009, Tagish Lake announced the resignations of directors Robert Rodger, Charles de Chezelles and Robert Bryce and the appointments of Graham Dickson, Neil Steenberg, Peter Holbek, and Sun Feng, (Robert Chafee remained as a director of Tagish Lake). The reconstituted board of directors then appointed Ren Xiaohua as a sixth director. The press release also noted that Messrs. Dickson, Sun, and Ren were representatives of YS Mining. As a result of these new appointments, the majority of the directors of Tagish Lake were connected in some respect to either YS Mining, Yukon-Shaanxi, or Yukon-Nevada; for example, Graham Dickson is the CEO of Tagish Lake and YS Mining and the COO of Yukon-Nevada.
â€� On April 1, 2010 Tagish Lake announced that it had granted a total of 11,981,720 incentive stock options to the Tagish Lake directors and officers. On July 15, 2010, Tagish Lake announced an additional grant of 2,000,000 incentive stock options to a new director.
â€� On April 12, 2010, Tagish Lake announced that it had obtained creditor protection under the Companies’ Creditors Arrangement Act. Tagish Lake made this decision with the unanimous authorization of its board of directors.
â€� On May 6, 2010, Tagish Lake announced the closing of a private placement to YS Mining of 14,274,000 shares at $0.05 per share, effective April 6, 2010.
â€� Between April 30, 2010 and May 17, 2010 YS Mining acquired, through open market purchases, a further 1,185,000 shares of Tagish Lake at prices between $0.044 and $0.45 per share.
â€� On August 23, 2010 Tagish Lake announced that on August 20, 2010 it had received a proposal from YS Mining, Yukon-Nevada, and Northwest Nonferrous International Investment Company Limited to enter into a memorandum of understanding to form a new company that would own the Skukum property and Yukon-Nevada’s Ketza river gold property.
â€� On August 31, 2010 YS Mining announced by press release its intention to make a cash offer of $0.12 per share for all of the issued and outstanding shares of Tagish Lake.
â€� On September 10, 2010 YS Mining mailed its take-over bid circular to Tagish Lake shareholders.
New Pacific understands that the BCSC is currently reviewing the issues raised in the Investigation Request Letter.
About New Pacific Metals Corp.
New Pacific is engaged in the exploration and development of mineral resources and gold-poly-metallic projects in China and other jurisdictions. New Pacific has extensive experience in implementing high grade resource development projects. For more information about New Pacific, visit the company’s website at www.newpacificmetals.com.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the release.