Vancouver, B.C. - Pinnacle Mines Ltd. announces that it has received Exchange approval to an agreement with Chesapeake Gold Corp. (TSX.V-CKG) to purchase up to a 70% interest in its La Calavera and Rio Minas copper-silver-gold properties located in Oaxaca, Mexico. Both the properties occur within a hundred kilometer long northwest trending structural belt which hosts several skarn prospects and other advanced exploration projects.

Earlier this year, in anticipation of closing the agreement, Pinnacle took steps that enabled the Company to immediately mobilize qualified personnel and equipment to initiate field work at both properties. The following outlines the Company's current findings and work plans to date:

La Calavera : Work has commenced on the La Calavera property, located in Sierra Madre Sur, 52 kilometers southeast of Oaxaca City near the community of San Baltazar Guelavila. The large property consists of two concessions totaling 8,267 hectares and is immediately adjacent to the Cobre Grande property controlled by Linear Metals Corp. The target at La Calavera is a copper-zinc skarn with attending precious metals that lies on the flank of a granodiorite stock. Pinnacle is presently cutting lines on 100 meter spacing for an induced polarization survey which will cover the El Manguito showing. Permitting has been approved for completion of an access road into the target area for the planned drilling of 8 to 10 core holes on skarn targets this year. It is important to note that Linear Metals reported that one of their core holes in skarn encountered 270.2 meters from surface averaging 1.0% copper, 23.2 gpt silver, and 0.4% zinc

Rio Minas : Work has also commenced on the Rio Minas property which is located approximately 37 kilometers southeast of the La Calavera property. Rio Minas consists of two concessions totaling 19,510 hectares in steep terrain. The target is silver-rich, polymetallic skarn adjacent to a granodiorite intrusive. Five skarn zones have been identified. Past sampling of road cuts and outcrops has revealed promising assays on the Zapoteca zone which returned 63 meters grading 0.90% copper with significant silver credits. Pinnacle has recently conducted additional ground reconnaissance work in the area and line cutting for an induced polarization survey is planned to commence within weeks.

The staged agreement will allow Pinnacle to earn an initial 51% of the properties over 5 years by issuing 100,000 common shares and paying US$50,000 cash upon signing the agreement (underway) and issuing a further 150,000 shares on September 1, 2007. On December 31, 2007 and March 1, 2008 respectively, an additional US$50,000 and 250,000 shares will be issued. Pinnacle has also committed to conduct work expenditures on the properties totaling US$500,000 by March 31, 2008. Upon favorable exploration results after the first year, Pinnacle will, on the second, third, and fourth anniversaries pay Chesapeake US$400,000 per year by way of cash (and/or half this amount in shares) and commit to work expenditures in years 2-5 of US$1,250,000; $1,250,000; $1,500,000 and $1,500,000 respectively. Pinnacle has an option to earn an additional 19% by completing a bankable feasibility study by December 31, 2014 and providing Chesapeake with a US$3 million payment (cash and/or half shares) and providing production financing for either property.

Pinnacle Mines is a Canadian based mineral exploration and development company with assets in Canada and Mexico. In Canada, Pinnacle holds several properties in Northwestern British Columbia in proximity to numerous past and producing mines including the Silbak-Premier Mine and Barrick Gold's famed Eskay Creek Mine. In Mexico, Pinnacle also has an option to acquire the Tuligtic property, a copper-gold target near Mexico City.
For further information contact Andrew Bowering, Vice President Finance or John Van Duzen at 604-688-7377 or visit Pinnacle's website at www.pinnaclemines.com ..

On behalf of the Board of Directors

"Paul Saxton"

Chief Executive Officer

The TSX Venture Exchange has not reviewed and does not accept responsibility
for the adequacy or the accuracy of the content of this news release.