DENVER, Feb. 14, 2005 (PRIMEZONE) -- Pinnacle Resources, Inc (OTCBB:PNRR) (Frankfurt:PIN) announced today that its wholly owned subsidiary, Titan Processors Ltd in South Africa, has successfully concluded negotiations with a coalition of African mining companies for supply of tantalite ore for its tantalum refinery in Johannesburg.
"Finding suitable and acceptable tantalite feedstock for the tantalum plant has become a challenge recently," says Pinnacle president Trig Gamble. He goes on to explain that "tantalite, like diamonds, that originates from the DRC (Democratic Republic of the Congo) still carries the taint of 'blood' in this war-torn area of central Africa, meaning that the proceeds from the sale of these products finance revolutionary war efforts. Internationally, 'blood' tantalite has received such negative press that buyers in Europe and the U.S. have shied away from buying it and insist on a certificate of origin on product they do buy. To further complicate the selection of tantalite ore sources, the EU and the U.S. have banned the importation of material containing even minimal amounts of radioactive elements. They have set the allowable levels so low that most African tantalite ores don't qualify without first being processed to remove the undesirable elements. However, China seems impervious to these constraints."
"We are fortunate to have developed this qualified supply source," says Jan Becker, Managing Director of Titan Processing, "and for now they must remain anonymous and their source of ore undisclosed even though we have verified that it is not DRC derived. We expect them to be able to supply 25 tons per month of good quality tantalite for which Titan will pay a slight premium."
"Titan is continuing its effort to develop other sources of tantalite ores that originate within the African continent until the company has reliable supplies of not less than 50 tons per month. The company has not ruled out starting its own mining operation to achieve the quantities of tantalite supply that it requires," explained Gamble.
Mr. R.A. Hildebrand, the Company's CFO added that, "Pinnacle's recent million dollar financing commitment will be a great help in lining up other qualified ore sources and in taking advantage of spot supply opportunities."
Additional information on Pinnacle Resources, Inc. is available on the company's website at http://www.pnrr.net.
This news release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. These forward-looking statements include expressions of beliefs, expectations, hopes, or intentions regarding the future, which may or not come to pass. It is important to note that actual results may differ from those expressed in such a forward-looking statements. Although Pinnacle believes its properties have potential, they are in early stages of exploration or development. There can be no assurance that if identified, any resource might be economically extracted. If additional projects are acquired, there can be no assurance of any economic benefit of cash flow to the company.