Pacific North West Capital Corp. has signed a Cooperation Agreement with SOQUEM Inc. ("SOQUEM") in order to conduct research on platinum properties in the province of Quebec.

Under the terms of the Agreement, effective as of June 30, 2006, PFN and SOQUEM will participate in a 50/50 joint venture to research platinum properties in Quebec, in a designated Area of Mutual Interest ("AMI"), with the objective of identifying viable properties for further exploration. PFN and SOQUEM will pool staffing and funding resources, and will share all technical data pertaining to properties located within the AMI. The parties will have equal representation of 2 members each on a Technical Committee, which will be responsible for setting programs, budget, and schedule. SOQUEM will act as Manager. The first exploration program agreed upon between the parties was budgeted at $250,000 and completed in late 2006.

In the event that a viable property is identified, the parties will either contribute jointly to all staking and acquisition costs, or, if one party elects to do so independently, will do so at its own expense. In that event, the other party is granted the right of first refusal to acquire a 50% interest in the property. Exercise of this right would result in the creation of a new Joint Venture Agreement between the parties for the newly acquired property.

About SOQUEM Inc.

SOQUEM INC. is a wholly owned subsidiary of the Société générale de financement du Québec ("SGF"). The mission of the SGF, an industrial and financial holding company, is to undertake economic development projects in the industrial sector in cooperation with partners and in compliance with the economic development policies of the Government of Quebec. SOQUEM's head office is located in Val d'Or, with a regional office in Chibougamau. For further information please visit www.soquem.qc.ca