On April 12, 2006, PFN announced that it had 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.

The mining lease, with Calista Corporation, encompasses an area of interest comprising about 82 square miles (212 square kilometres).  Previous placer operations in the streams draining the project area produced approximately 650,000 troy ounces of platinum.

2006 field exploration efforts focused on the Goodnews Bay ultramafic intrusion in the Susie Mt. area (Figure 2) of the project where historical exploration resulted in discovery of +1 gram per tonne platinum in rock and soil samples. The 2006 evaluation program consisted of basal soil samples, pan concentrate samples and rock samples in addition to reconnaissance scale prospecting.

Results released on January 29, 2007, from the 2006 programs provided significant encouragement with anomalous Pt values in the basal soil layer on the southwest flank of Susie Mountain with Pt values as high as 268 ppb.  The anomalous values are underlain by clinopyroxene dominated rocks. The approximate 650,000 ounces of placer platinum recovered from the Salmon River (Figure 2) likely originated from the deeply eroded Red Mountain massif.  The potential to find additional lode platinum in the geological units on Susie Mountain remains untested.

Based on the results of the 2006 field program as well as synthesis of previous work at Goodnews Bay, a series of soil, rock and pan concentrate sampling programs followed by surface trenching and/or diamond core drilling have been recommended for 2007.

PFN and Stillwater Mining Company ('Stillwater') (NYSE: SWC) have entered into a non-binding Letter Agreement pertaining to ongoing exploration of the Goodnews Bay Platinum Project.  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.

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.

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