Pacific Iron Ore Corporation (the "Corporation") (TSX VENTURE:POC) announces
that it has entered into a purchase and sale agreement (the "Agreement") with
Mega Graphite Inc. ("Mega Graphite") through which Mega Graphite will purchase
certain non-core mining claims in Northern Ontario from the Corporation exchange
for 900,901 common shares of Mega Graphite (the "Sale Transaction").


Mega Graphite is a private Ontario corporation with office in Oakville, Ontario
which focuses on the development and manufacture of high-grade graphite products
for the advanced technology sector. The graphite produced by Mega Graphite is
primarily used in lithium batteries for the automotive industry. Mega Graphite
is presently working towards completing an initial public offering in the fourth
quarter of 2010. Mega Graphite is arm's length to the Corporation. 


The non-core mining claims to be sold to Mega Graphite are known as the
"Separation Project", which is comprised of 21 mining claims located in the
Paterson Lake mining district in Northern Ontario. The Separation Project
includes the Big Mack property, a mining property which comprises approximately
224 hectares and 1 mining claim, and the Separation property, which comprises
approximately 2,384 hectares and 20 mining claims and adjoins the Big Mack
property. Together these two properties comprise the Paterson Lake district.
Management believes these properties may exhibit the potential for the rare
metal pegmatites of Petalite (lithium), tantalum and tin, with some occurrences
of uranium and molybdenum. 


The Agreement contains provisions for the issuance of additional Mega Graphite
Shares to the Corporation in the event the price per common share of Mega
Graphite does not reach $1.11 per share within 30 days of Mega Graphite
completing its going public transaction. Additionally, if Mega Graphite does not
complete its going public transaction before May 19, 2011 the parties have
agreed (a) the 21 mining claims will be returned to the Corporation and (b) the
900,901 shares of Mega Graphite will be transferred back to Mega Graphite.


The Sale Transaction is expected to close on or before June 30, 2010 and is
subject to customary closing conditions.


Company Contacts:

For further information please refer to the Corporation's profile on SEDAR which
can be accessed at www.sedar.com, visit our website at
www.pacificironorecorp.com.


Forward Looking Statements:

The TSX.V Exchange has not reviewed and does not accept responsibility for the
adequacy or accuracy of this release. This release includes certain statements
that may be deemed "forward looking statements". All statements in this release,
other than statements of historical facts, that address future production,
reserves potential, exploration drilling, exploration activities and events or
developments that the Corporation expects are forward looking statements.
Although the Corporation beliefs the expectations expressed in such forward
looking statements are based on reasonable assumptions, such statements are not
guarantees of future performance and actual results or developments may differ
materially from those in the forward looking statements. Factors that could
cause results to differ materially from those in the forward looking statements
include, but are not limited to: market prices; exploitation and exploration
successes; continued availability of capital, financing and personnel;
government regulation and laws; the Corporations relationship with First
Nations; environmental developments; and general economic, market or business
conditions. Investors are cautioned that such statements are not guarantees of
future performance and those actual results or developments may differ
materially from those projected in the forward looking statements. For more
information on Pacific Iron Ore Corporation, Investors should review the
Corporation's registered filings which are available at www.sedar.com.
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