VANCOUVER, BRITISH COLUMBIA (TSX VENTURE: PPM) is pleased to announce that subject to regulatory approval it has entered into two definitive agreements with Yunnan Nonferrous Metals Geological Bureau ("YNGB"). These agreements are as a result of the Letter Agreement announced on June 29, 2007 with YNGB outlining the terms of a financial settlement and allowing YNGB to undertake future mining on the Company's Tangshang and Salachong gold properties. A majority of the Company's shareholders have indicated support for the agreements.

Pursuant to the first agreement, the Equity Transfer and Cooperation Agreement, the Company and its wholly owned subsidiary GoldChina Holdings Group Limited (GoldChina) have agreed that in settlement of a potential Final Transfer Payment of 14,700,000 RMB payable to YNGB, the Company will issue 7,807,333 common shares at a deemed price of $0.27 per share. These shares shall be subject to escrow and released to YNGB in three stages; 1/3 on or before December 31, 2007, 1/3 on or before December 31, 2008, and 1/3 on or before December 31, 2009.

Pursuant to the second agreement, the Mining Operations Agreement, the Company and GoldChina have agreed to appoint YNGB or its subsidiary ("Yunnan Group") to conduct all mining operations on its Tangshang and Salachong gold properties on certain stated terms and conditions. The Yunnan Group shall provide all capital costs and expenses and retain 10 percent of the total profit for its management services. The Company shall not be required to provide any funds and shall receive 90 percent of the total profit. YNGB has guaranteed minimum net profits of 900,000 RMB for the balance of 2007; 3,600,000 RMB for 2008 and 7,200,000 RMB for 2009 (1 RMB equals approx. US $0.13). The Company has the right to replace Yunnan Group as operator of all mining operations by delivering to YNGB a Feasibility Report for an operation involving capital expenditures on the Company's properties, including any properties acquired by the Company within a specified area of interest, totaling in excess of U.S. 100 million dollars. YNGB will make available its extensive holdings within this area of interest for evaluation during the next two year to determine if any of such properties are of interest to the Company.

The Company also announces the appointment of Mr. Yuansheng Guo as Co-Chairman and Director of the Company and is pleased that an individual of his stature will take an active role in the Company. Mr. Guo holds a PhD from the China University of Geoscience in geology and economics and has 30 years of experience as a geologist, economist and administrator. He has held positions of increasing responsibility within YNGB and is presently Director of YNGB and Chairman and General Manager of Yunnan Nonferrous Metals Resources (Group) Co. Ltd. He has published and lectured extensively on the Yunnan minerals industry and China's gold industry and has been recognized by having received the National Wuyi Labor Medal in 2004 as well as several provincial awards.

As a result of the recently signed agreements, YNGB will become a significant shareholder with a direct interest in the Company. It is anticipated that both parties will benefit by sharing resources that may lead to identifying opportunities in the mineral resource industries in China.

On behalf of the Board of Directors

PACIFIC IMPERIAL MINES INC.

Leo King, President and Director

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

Contacts: Pacific Imperial Mines Inc. Leo King President (604) 669-6332 (604) 688-9336 (FAX) Email: ppm-corp@telus.net

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