Pacrim Energy LTD - Growth Through Discovery

EXTERNALLY MANAGED GOLD PROJECTS

Angelo & Grants Creek Gold Project

LOCATION: EAST KIMBERLEY, WESTERN AUSTRALIA
(Farming out to 30%)

ANGELO GOLD PROJECT
The Angelo gold project is located in the East Kimberley region of Western Australia, approximately 40 kilometres southwest of halls Creek.

Reverse circulation drilling undertaken by Metminco at the Leonardo prospect in mid 2008 returned results including 3 metres @ 1.7g/t and 2 metres @ 4.31g/t gold with an adjacent stockwork zone intercept of 17 metres @ 0.24g/t gold. Along with earlier RAB drilling, these results are considered to confirm the presence of a promising mineralised system within a substantial area of elevated gold in soil over six kilometres long and up to a kilometre wide.

In order to focus future exploration within the anomalous trend, the entire soil sampling database was recently reviewed and enhanced by geochemical consultants engaged by Metminco. Their review provided far greater definition to the gold and arsenic soil anomalies and has identified a number of areas for more detailed examination. In particular, the Figaro prospect was identified as having strong correlation between gold and arsenic and will be subject to further scrutiny this season due to being markedly raised in order of priority.

GRANTS CREEK GOLD PROJECT
The Grants Creek Gold Project is located in the East Kimberley region of Western Australia, approximately 60 kilometres north of Halls Creek. Previous exploration by Metminco and Pacrim Energy has identified a three kilometre long prospective zone defined by anomalous gold and arsenic soil geochemistry.

Metminco’s RC drilling at the Perseverence Prospect in late 2008 returned many high grade single metre gold assays such as 17.8g/t, 20.7g/t, 12.8g/t and 15.25g/t from within better intercepts that included 15 metres @ 4.2g/t, 5 metres @ 5.87g/t, 6 metres @ 6.13g/t gold.

Enhancement of gold mineralisation is interpreted to occur at the intersection of cross-faults. Further drilling on the Perseverence and Moody’s prospects is proposed.

 

Perseverence Prospect – RC drilling results – single metre assay >1.0g/t gold
HOLE ID East North Azimuth/Dip From To Intercept g/t Gold
GRC-001 385001 8028095 328/-75 6 9 3m @ 5.96
        7 8 incl. 1m @ 15.40
        23 28 5m @ 1.61
GRC-002 385004 8028079 328/-60 30 34 4m @ 1.61
GRC-003 384982 8028076 328/-60 33 41 8m @ 2.14
GRC-004 384988 8028066 328/-60 39 42 3m @ 1.86
        51 66 15m @ 4.2
        58 59 incl. 1m @ 17.80
GRC-006 384952 8028076 328/-60 19 23 4m @ 2.83
GRC-007 384956 8028067 328/-60 31 36 5m @ 5.87
        31 32 incl. 1m @ 20.7
GRC-008 384963 8028055 328/-60 57 63 6m @ 2.08
GRC-009 384924 8028071 331/-60 13 19 6m @ 6.13
        16 17 incl. 1m @ 12.8
GRC-010 384929 8028059 328/-60 26 29 3m @ 7.88
        27 28 incl. 1m @ 15.25
GRC-012 384900 8028064 328/-60 11 15 4m @ 2.41
GRC-014 384965 8028103 148/-60 8 29 21m @ 2.74

Fosterville Regional Joint Venture

LOCATION: FOSTERVILLE, VICTORIA
(PACRIM 25% - GOLD FIELDS AUSTRALASIA PTY LTD 75%)

Gold Fields have notified Pacrim that they have completed their obligation expenditure of $2.5 million. Pacrim will be required to either dilute or contribute to future programmes on this Project.

The results from AirCore drilling between the Main and Lees Trends indicate continuity of a single north-south striking anomalous trend of gold/arsenic/antimony extending over 8 kilometres. Findings from this work along with results from Gold Fields’ adjacent Lockington project are thought to represent the discovery of a major zone of gold mineralisation under cover in Central Victoria, potentially a new gold camp.

A 6 hole diamond drilling program testing of the Main-Lees Trend at depth was completed in 2007, for a total of 1813 metres. The deepest hole was 324 metres. All holes targeted basement mineralisation in the Main-Lees Trend below aircore intersections.

The northern section 5980650mN (drilled 750 metres north on Brentnall Lane) intersected an encouraging turbidite package with zones of intense brecciation and minor quartz-carbonate veining. Associated arsenopyrite and pyrite mineralisation occur as very fine disseminated needles and cubes in brecciated sandstone or shale. The highest grade intersection was 1 metre @ 6.76g/t gold in 07LODH031. The previously reported wide zone of arsenopyrite rich mineralisation in hole 07LODH030 returned 13.5m at 1.03g/t Au with a maximum value of 2.5g/t gold. This promising mineralised zone revealed little structural information as it comprised entirely of broken core unable to be oriented.

Gold Fields have reported that mineralised zones are interpreted to be associated with localised shallow east dipping faults, which in turn appear to be related to steep west dipping reverse faults in a steeply (though variable) west dipping turbidite package. Further targeted diamond drilling is required to understand the structural architecture and possible mineralised shoot controls.

Operators, Gold Fields Australasia Pty Ltd, prepared an Information Memorandum registering the discovery of a new gold camp within the Central Victoria project which includes the Fosterville Regional Joint Venture licences.

Further targeted diamond drilling is required to understand the structural architecture and possible mineralised shoot controls.

Manus CoPper Gold Project

LOCATION: MANUS ISLAND, PAPUA NEW GUINEA
INTEREST: PACRIM 20% (Operated by Triple Plate Junction PLC)

The Manus project is interpreted to consist of an east/west oriented “mineralised corridor” defined by the Kren(Cu)-Njekel-Kisi-and East Worei prospects.

The overall picture that is emerging is one of a copper porphyry-epithermal gold system that may host porphyry copper at depth and bonanza gold in fractures and veins at intermediate depth.

Geological mapping between the Njekel and Kisi prospects has been carried out. The Kisi Zone mineralisation channel sample results included 16m @ 40g/t which contains 2m @ 303g/t gold.

Further hand-dug trenching has been carried out at various locations in the Kisi area to enable further sampling and mapping. Epithermal quartz veins and altered vugghy siliceous hydrothermal breccias appear to host much of the gold mineralisation within the prospect. Geological mapping of trench exposures suggests gold mineralisation to be hosted in a series of structures.

New assay results include 20m @ 1.41 g/t Au from Trench 10 at Kisi, over 200 metres northeast of the discovery outcrop.

Rock chip samples collected from trenching at Lumalat, 1500m northeast along strike from Kisi discovery outcrop returned 13.8m @ 0.72 g/t Au. Exploration is planned for the intervening ground.

Diamond drillhole KIS-001 at the Kisi prospect was completed in early 2008. Drillhole KIS-001 intersected 1.57 metres at 8.08g/t gold from 72.33 metres, including 0.55 metres @ 15.55g/t gold. The hole was designed to verify a previous drillhole result of Highlands Gold that intersected 5.6 metres @ 2.49g/t gold and was then terminated prematurely at 15.6 metres due to drilling difficulties.

SAMPLE From To Intercept g/t gold
58046 72.33 72.88 0.55 @ 15.55
58047 72.88 73.38 0.50 @ 0.705
58048 73.38 73.9 0.52 @ 7.25

The rig proceeded to drill hole KIS-002 and encountered epithermal mineralisation at 36.4 metres. Fieldwork also continued on structurally controlled copper veins located in the northern part of the Kren porphyry copper prospect.

Blue Dam Project

LOCATION: KALGOORLIE, WESTERN AUSTRALIA
(PACRIM 100%)

The prospect comprises four prospecting licence applications located 20km southwest of Kalgoorlie, WA between the Kunnunulling and Mungari Shear Zones, similar to the nearby Frogs Legs and White Foil gold deposits to the north.

Soil sampling, air core drilling and limited RC drilling have been undertaken in the past. Low order gold anomalism has been located. Ground magnetometer surveying is planned to generate further drill targets to be advanced upon granting of the tenements.