Pinnacle Silver and Gold: District-Scale Silver-Gold Exploration and

• The Agreement – Pinnacle Silver and Gold Corp. (“Pinnacle”) has signed a Letter of Intent (the “LOI”) with an arm’s length private individual and a company he controls whereby Pinnacle will have a staged option to acquire up to a 100% interest in the 1,074 hectare El Potrero high-grade gold-silver project in Durango, Mexico.

• Prolific Area with Major Operating Mines Nearby – El Potrero is located in the prolific Sierra Madre Occidental of western Mexico and lies within 35 kilometres of four operating mines, including the 4,000 tonnes per day (tpd) Ciénega Mine (Fresnillo), the 1,000 tpd Tahuehueto Mine (Luca Mining) and the 250 tpd Topia Mine (Guanajuato Silver).

• High Grade & District-scale with Exploration Upside – High-grade gold-silver mineralization occurs in a low sulphidation epithermal breccia vein system hosted within andesites of the Lower Volcanic Series and has at least six historic mines along the four-kilometre strike length.  A historic resource based upon underground sampling is reported to consist of 45,561 tonnes at 8.0 g/t gold and 186 g/t silver (10.3 g/t gold equivalent or 845 g/t silver equivalent).1, 2   The property has been in private hands for almost 40 years and has never been drilled or explored by modern methods, leaving significant exploration potential.

• Near-term Production Possibility – A 100 tpd plant on site can be refurbished / rebuilt and historic underground mine workings rehabilitated at relatively low cost in order to achieve near-term production once permits are in place.

• Infrastructure Friendly – Property is road accessible with a power line within four kilometres.  Surface rights are privately owned (no community issues) and the acquisition includes approximately 200 hectares of land where the plant sits.

• Staged Option and Earn-In Right – Pinnacle will earn an initial 50% interest immediately upon commencing production.  The goal would then be to generate sufficient cash flow with which to further develop the project and increase the Company’s ownership to 100% subject to a 2% NSR.  If successful, this approach would be less dilutive for shareholders than relying on the still challenging equity markets to finance the growth of the Company.

• Proven Management Expertise in Operating Gold/Silver Mines in Mexico – Pinnacle’s Board and Management have considerable years of experience and success operating in the Sierra Madre gold-silver belt of Mexico.  Pinnacle’s President & CEO, Robert Archer was a co-founder of Great Panther Silver, that initially acquired and restarted the Topia Mine in 2004-06, and successfully transitioned the company from explorer and developer to mid-size silver miner reaching $600 million market capitalization and listing on NYSE-American.  Non-executive director David Salari is involved in the development of two mines in Mexico and Colin Jones, also a non-executive director, is a Technical Advisor to another explorer in the…