Pinnacle Formalizes Contracts for Preliminary Economic Assessment with Tetra Tech and Environmental Baseline Study with Cambria Gordon Ltd.

Vancouver, B.C., December 2, 2009, Pinnacle Mines Ltd. (PNL: TSX-V, "Pinnacle" or the "Company") is pleased to announce that it has awarded a contract to complete a NI 43-101 compliant resource estimate and Preliminary Economic Assessment of the Company's advanced-stage Silver Coin gold project to Tetra Tech Inc. based in Denver, Colorado. Silver Coin is located in the Stewart Mining Camp in NW British Columbia. Tetra Tech, a major engineering firm with a work force of over 10,000, will prepare the study in two phases. The first phase will begin with a thorough review of the existing drill hole, assay and geologic databases, from which they will produce a new 43-101 compliant resource estimate. The second phase of their study will involve a scoping study to determine if the project is potentially economic followed by their preliminary recommendations and economic and engineering modeling of constructing an open pit mine.

The Stewart Camp also hosts significant historical gold and gold-base metal mines including Eskay Creek, Granduc, Silbak Premier, and Red Mountain. Exploration in the District in recent years has resulted in several new discoveries including the Kerr-Sulphurets-Mitchell-Snowfield deposits located north of Silver Coin. Additional important discoveries have been made at Homestake Ridge (Bravo Resources), and Red Cliff (Decade Resources). The camp comprises highly-altered and mineralized terrain and hosts porphyry gold-copper, epithermal gold-silver and Kuroko-style, gold-rich, VMS mineralization. Silver Coin is one of the most important gold-bearing projects in the Stewart Camp and, unlike the majority of new discoveries, hosts excellent infrastructure. It is located just 25 km north of the town of Stewart on the Granduc Road which connects the project with Stewart and its deep-water port facilities. Silver Coin is 10 km north of, and along strike from, the past-producing Silbak-Premier Mine which was one of the largest gold producers in British Columbia before it closed. Silver Coin, which possesses many of the same geological characteristics as Silbak-Premier, has been well tested by diamond drilling, although the deposit is still open to the north and to the south.

Tetra Tech Study

A review of the scope of work being undertaken by Tetra Tech follows:

Phase 1 (in progress)

1. Comprehensive review of drill hole, assay and geologic database;

2. Review of quality control of assay database;

3. Geostatistical analysis of the assay data;

4. Construction of 3-Dimensional wireframe digital models of the mineralized zone;

5. Generation of a statistically valid composite 3-D drill hole assay database;

6. Produce "Krigged" geochemical-geologic model; and

7. Calculate a NI 43-101 compliant Resource Estimate.

Phase 2 (utilizing new resource estimate)

1. Geological review of the Silver Coin deposit including all relevant drill data;

2. Review existing databases and 3-D model to ensure that computer modeling matches real geologic data; construct grade envelopes and determine grade-limiting boundaries;

3. Review and verify bulk-density data;

4. Evaluate metallurgical test work completed to date and develop conceptual metallurgical flow sheet; estimate capital and operating costs of ore processing; size and select a site for processing and tailings facilities; recommend additional metallurgical test work;

5. Estimate allowable pit-slope angles;

6. Estimate economic parameters such as mining operating costs, process operating costs, transportation costs, G&A, environmental costs, process recovery, freight, refining and recovery charges, etc.;

7. Pit Shell Analysis: Tetra Tech will develop a conceptual pit to determine a potentially mineable resource with which to base a production schedule and the resulting cash-flow projections;

8. Site Plan: conceptual site layout and location of major infrastructure, including: open pit excavations; leach pad, processing facilities, maintenance facilities and roads; G&A for mine management, human resources, accounting, purchasing, engineering, reclamation and permitting, and warehousing;

9. Environmental and permitting: identify environmental liabilities and potential "fatal flaws" regarding permitting; and

10. Cash flow model: pre-tax cash flow model will reflect the most recent capital and operating costs available and will utilize mutually agreed upon metals prices; analyses on project sensitivity to changes in grade, recovery, operating costs and capital costs.

Environmental Studies

The Company has contracted Cambria Gordon Ltd., an environmental consulting firm based in Terrace, B.C. to study and report on the environmental aspects of developing the Silver Coin deposit. To date, the firm has identified a tailings site, and has completed a preliminary vegetation inventory with particular emphasis on the presence of endangered plant and animal species and ecological communities. They have also completed a wildlife habitat assessment and have addressed the permitting and environmental implications of using cyanide in a closed circuit to recover gold. Their preliminary findings suggest that there are no reasons that this potentially cost-saving approach should not be pursued in production planning.

Metallurgical Studies

Metallurgical testing at Silver Coin has been ongoing for over the past year by F. Wright Consulting Inc. Results have shown that Silver Coin mineralization exhibits very favorable metallurgical characteristics using conventional sulfide flotation. Although additional work is needed to optimize the process, results demonstrate excellent gold recoveries of 85-95% by simple flotation. As well, Work Index studies indicate favorable crushing and grinding characteristics.

Summary

The Company expects results of the engineering, geological and resource estimation studies to become available during the first quarter of 2010. With the results of these studies, Pinnacle will be in a much better position to plan additional drill testing, metallurgical work and more detailed follow-up engineering studies to progress the project towards feasibility.

This press release was prepared and reviewed by Lawrence A. Dick, Ph.D., P.Geo, who is recognized as a Qualified Person under the guidelines of National Instrument 43-101. For further information contact Lawrence Dick at 604.688.9588 or visit Pinnacle's website at www.pinnaclemines.com.

On Behalf of the Board:

Lawrence A. Dick, Ph.D., P.Geo

President & CEO

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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