• PFN sold the Nixon Fork Gold mine in July 2009 for a 500% gain and will participate in the upside of the Nixon Fork Gold Mine through its majority ownership of FAU
• PFN was issued 6.5 Million shares of FAU on Sept. 2009 and was paid approximately US $1 Million within six months
• The Nixon Fork Gold Mine is a fully permitted and bonded mine, which management of FAU plans to put back into production within the next 18 months
• Over US$100 Million has been spent to date on the mine, Mill, and underground infrastructure
• Previous production averaged over 40 grams per ton and additional credits of copper and silver

December 18, 2008. Pacific North West Capital Corp. announced the signing of a letter agreement pursuant to which it has acquired an option, exercisable until February 15, 2009, to purchase a 100% interest in Mystery Creek Resources, Inc. (MCR), a wholly owned Alaskan subsidiary of St Andrews Goldfields Ltd. (SAS) (TSX: SAS). MCR's assets include the Nixon Fork gold mine, located 56 kilometres northeast of McGrath, Alaska. PFN has paid US$100,000 on signing of the agreement. Subject to regulatory approval and the satisfactory completion of its due diligence review, PFN may exercise the option by paying a further US$400,000, of which US$100,000 is required to be paid on closing of the purchase of the MCR shares and the balance is required to be paid in three equal instalments on May 1, July 1 and September 1, 2009. 

June 29, 2009. Pacific North West Capital Corp. announced that it has granted to Fire River Gold Corp. ("FAU") an option to acquire the outstanding shares of Mystery Creek Resources, Inc. (MCR), a wholly owned Alaskan subsidiary of PFN. MCR's assets include the Nixon Fork gold mine, located 56 kilometres northeast of McGrath, Alaska. Fire River Gold will pay PFN US$50,000 on signing of the agreement. FAU may exercise the option by making further payments totalling US$450,000 over a six month period, and issuing a total of US$2.5 million in FAU shares at a deemed price of $0.45 per share for a total of 6,415,000 shares. Based on FAU's share structure, the issued shares will give an ownership interest of approximately 64% of FAU. FAU will also issue PFN 1,000,000 share purchase warrants entitling PFN to purchase 1,000,000 shares at an exercise price of $0.50 for a period of twenty-four months from the date of closing. FAU will also refund all expenses incurred by PFN from May 1st 2009 until the finalisation of this transaction to a maximum of CDN$1,250,000. The transaction is subject to satisfactory completion of due diligence by FAU, and receipt of regulatory and shareholder approvals as required. PFN will remain the operator of the Nixon Fork Gold Project until the closing of the transaction.

On August 13, 2009, FAU exercised its option to purchase a 100% interest in Mystery Creek Resources, Inc. ("MCR"), a wholly owned Alaskan subsidiary of Pacific North West Capital Corp. ("PFN"). MCR owns the Nixon Fork Gold mine in Alaska, a former high-grade gold mine, which has produced approximately 145,000 ounces at a production average of over 42 grams per ton (1.4 ounce per ton).

Through the sale of MCR (Nixon Fork Mine) to FAU, Pacific North West Capital became the largest shareholder of FAU.

Nixon Fork Production History

Nevada Goldfields Inc. (NGI) operated the high-grade underground gold mine from 1995-1999, recovering 137,749 ounces of gold and 2.1 million pounds of copper, with additional silver credits. The average production grade was 42 grams per tonne (gpt) of gold, with an average production cost of US$266 per ounce. The mine was closed in 1997 due to declining gold prices. SAS purchased the mine in 2003. From 2004 through 2008 approximately over US$50 million was expended on upgrades to the processing facilities and mine infrastructure. During this time 9,381 meters of reserve-resource definition drilling was conducted, an updated reserve-resource estimate and additional metallurgical testing were completed.  

Limited production in 2007 resulted in recovery of 6,775 ounces of gold  and 78,644 pounds  of copper.

SAS commissioned Roscoe-Postle Associates of Toronto to complete NI 43-101 technical reports in 2005 and 2006, which reviewed the mineral reserve-resource of the property and completed a financial analysis of proposed mining operations. These reports are available from SAS reports filed on Sedar.

Facilities at the Nixon Fork Mine include a 200 tpd floatation plant with a gravity gold separation circuit, a sulphide floatation circuit, and a newly constructed CIL gold leaching circuit. The mine also boasts a fleet of mining vehicles, a power plant, maintenance facilities, an 85 person camp, office facilities, and 5 aircraft landing strips. The mine and equipment are currently winterized and under a care and maintenance regime. 

Mining and processing operations at Nixon Fork are fully permitted and bonded. Mine stockpiles amount to 2,100 tonnes of ore, and approximately 116,000 tonnes of mill tailings are ready to be processed in the CIL circuit. 

PFN will conduct a comprehensive re-evaluation of mine reserves/resources, metallurgy, mining scenarios, and permitting during 2009. A financial analysis of the mine will also be completed. These studies will form the basis for a planned re-start of mining operations. In addition, PFN believes the current resource is not fully explored. Management plans to complete its due diligence by Feb 15th 2009 and establish the appropriate strategy to continue the development of the project. 

PFN is currently expanding its commodity focus to include advanced stage gold and base metal properties, while continuing to develop its PGM portfolio. The acquisition of the Nixon Fork Mine fulfils this corporate objective, and the Company is extremely excited by the near term production opportunity represented by this significant asset.