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New Pacific Metals Announces Intention to Make Take-over Bid for Tagish Lake Gold Corp

New Pacific Metals Corp. (NUX.V) announced today that it intends to make an offer to purchase all of the common shares of Tagish Lake Gold Corp. (TLG.V).

New Pacific Metals last traded at 76 cents. Tagish last traded at 4 cents.

New Pacific's combination of 50% in cash and 50% in New Pacific shares at the election of the Tagish Lake shareholders. New Pacific is concurrently offering to purchase for cash the approximately $7.4 million in secured and unsecured debt on the books of Tagish Lake. Secured creditors of Tagish Lake are being offered 100% of their proven claim amounts with no conditions, and unsecured creditors will be offered 100% of their debt on the books of the Company subject to the fulfillment of certain conditions under the take-over bid.

The Offer for the Tagish Lake common shares represents a premium of 50% over Tagish Lake's closing share price on July 2, 2010, and a 50% premium to Tagish Lake's 20-day, and year to date volume-weighted average closing price on the TSX Venture Exchange. New Pacific said it is offering Tagish Lake shareholders certainty, and a solution to remove Tagish Lake from Companies Creditors Arrangement Act protection, with a compelling premium to the longstanding share price, in a bid that enables them to choose to cash out or participate in the development of Tagish Lake's Skukum Creek Gold District.

New Pacific has $10 million in cash, a further $10 million available under a line of credit, a transparent ownership structure and a track record of raising capital in North American financial markets. Its management and directors have a history of operational success in bringing high grade, narrow vein mines into production effectively.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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