Stillwater Mining Company signs Letter Agreement to Option/Joint Venture Goodnews Bay Platinum Project

Pacific North West Capital Corp., is pleased to announce that PFN and Stillwater Mining Company ('Stillwater') have entered into a non-binding Letter Agreement pertaining to ongoing exploration of the Goodnews Bay Platinum Project ("GBPP"), Alaska. The Letter Agreement also provides for Stillwater to fund reconnaissance on other Alaskan PFN exploration projects with the provision for Stillwater to enter into option/joint venture agreements on the Goodnews Bay Project and 1 or more of the reconnaissance projects.

The GBPP agreement is subject to approval by Calista Corporation. Calista Corporation is the second largest land owner of 13 regional Alaskan Native corporations formed in 1971 under the Alaska Native Claims Settlement Act (ANCSA). Calista Corporation's land entitlements exceed 6.5 million acres in Southwest Alaska and contain several significant mineral occurrences, including Goodnews Bay (platinum) and Donlin Creek gold project (16.6 million ounces Measured plus Indicated and 17.1 million ounces Inferred). For more information on Calista visit their website www.calistacorp.com.

Under the terms of the Letter Agreement, Stillwater will spend $4 million to earn 50% of GBPP by December 31, 2010. Stillwater may elect to increase its interest to 60% by incurring an additional $8 million in exploration expenditures within an additional two year period or upon completion of a Feasibility Study, whichever occurs first. Stillwater may increase its interest to 65% by arranging for 100% of the project financing required to place the Property into Commercial Production within an additional three years.

PFN will be the Project Manager during the option period, as defined in the Option Agreement, and will receive a management fee.

Reconnaissance Properties Option

Under the reconnaissance portion of the Letter Agreement, Stillwater will expend $500,000 in 2007 which will allow it to inspect several of PFN's proposed projects and after the field season Stillwater may elect to continue participation in 1 or more projects by committing to fund the following year's approved program for each elected project.

Stillwater Strategic Investment

On November 17, 2006, Stillwater acquired approximately 11% interest in PFN by completing a $2 million private placement. On December 12, 2006, PFN announced a $0.47 private placement for $1 million in which Stillwater maintained their position by a proportionate investment in the placement.

The Goodnews Bay Project

On April 12, 2006, PFN announced that it has acquired a 100% working interest in a long-term exploration and mining lease on the Goodnews Bay ultramafic platinum complex located on the southwest coast of Alaska (Figure 1), approximately 550 air miles south-southwest of Anchorage. The Goodnews Bay Project is located near year round ice free tidewater and is road accessible from the village of Platinum, which has a public airstrip.

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