Leasing Of The Red Hill Project From Nevada North Resources

VANCOUVER - American Pacific Mining Corp has leased the Red Hill property located on the southern end of the prolific Cortez gold trend. The Red Hill Property was leased from Nevada North Resources, Inc.. Previous drilling at Red Hill intersected 13.7 meters of 8.11 grams per tonne (g/t) gold. The Company believes that the Red Hill Property has been inadequately tested for the deep potential.

Upon production commencing on the Red Hill Property, American Pacific will pay Nevada North a 3% net smelter royalty (NSR), 1.5% of which American Pacific may buy back for US$3,000,000.

Red Hill is a sediment-hosted gold project located 24 kilometers southeast of the 12 million ounce Cortez Hills gold deposit within the Cortez trend. The project covers an extensive area of hydrothermally altered lower plate carbonate rocks. In 2006, drill hole BRH-013 intersected 24.4 meters of 4.99 g/t Au from 585.4 to 609.8 meters, including 13.7 meters of 8.11 g/t Au from 585.4 to 599.1 meters. Gold mineralization is hosted in silty carbonate rocks of the Denay formation associated with altered lamprophyre dikes; and high levels of arsenic, antimony, mercury and thallium. These features are indicative of a Carlin-style gold system.