July 24, 2012. Vancouver, Canada -- Pacific North West Capital Corp. (TSX: "PFN"; OTCQX: PAWEF; Frankfurt: P7J) is pleased to announce its acceptance of a proposal from SGS Canada Inc. for metallurgical testing on the River Valley platinum group metal (PGM) deposit, located 100 km to the northeast of Sudbury (Figure 1). The deposit is currently owned 100% by PFN. On May 1, 2012 PFN announced a new NI43-101 compliant mineral resource estimation. The estimated Measured + Indicated mineral resources at a cut-off grade of 0.80 g/t PdEq total 91,339,500 tonnes grading 0.84 g/t Pd+Pt+Au, 0.06% copper and 0.02% nickel (1.38 g/t PdEq). The Inferred resources total 35,911,000 tonnes grading 0.53 g/t Pd+Pt+Au, 0.06% copper and 0.03% nickel (1.07 g/t PdEq). The distribution of the River Valley mineral resources is represented in Figure 2.

Figure 1. Location of the PFN's 100% owned River Valley PGM Project relative to the Sudbury and its metallurgical facilities, northern Ontario, Canada Valley Property, Sudbury region.

Figure 2. Distribution of the NI43-101 compliant mineral resources on the River Valley PGM Project

With these mineral resources, the River Valley Project is to be assessed as a large open pit PGM-Cu-Ni mining and milling operation as the project advances towards a Preliminary Economic Assessment (Scoping) Study. In support of this study, a metallurgical test program is to be completed and build on limited preliminary test work completed intermittently between 1999 and 2006. SGS Canada Inc. has extensive experience with these types of low sulphide mineralization, particularly in the development of economically viable flow sheets. The metallurgical test program includes sample preparation and characterization, grindability testing, ore beneficiation, flotation testing and environmental testing. Initial ore sorting and dense media separation tests may also be performed.

Two diamond drill holes will provide material for the metallurgical test program. One of the holes will be drilled at the Dana North Zone and the other at the Dana South Zone. Each hole is anticipated to provide 500 kg of core material, allowing for: 1) extensive test work on a single composite sample from each zone plus an overall composite sample of the two zones; and 2) comprehensive assaying and QEMSCAN studies to follow the PGM during the test work. The drilling is planned to be completed and the materials delivered to SGS in August. The test program should be completed by the end of the year. Mr. Al Hayden, P.Eng. and Associate of NordPro Mine & Project Management Services (Thunder Bay) has been hired by PFN as its metallurgical consultant to supervise the study and review results.

About River Valley Project

In January 2011, Pacific North West Capital Corp. successfully negotiated the 100% acquisition of the River Valley PGM Project from Anglo Platinum Limited. The River Valley Project is one of the largest undeveloped primary PGM Projects in North America. The project has excellent infrastructure support and is located 100 km from the city of Sudbury, Ontario, Canada's largest nickel-copper-PGM mining and metal recovery centre.

The NI43-101 compliant mineral resources for the River Valley Project effective May 1, 2012 are as follows:

Qualified Person Statement

This news release has been reviewed and approved for technical content by Dr. William Stone, President & COO of PFN, a Qualified Person under the provisions of National Instrument 43-101.

About Pacific North West Capital Corp.

PFN is a mineral exploration company whose philosophy is to be a project generator, explorer and project operator in order to option-joint venture its projects through to production. PFN is focused on the discovery, exploration and development of PGM and nickel-copper sulphide deposits in geologically prospective regions in North America, particularly Canada. The Company's key asset is its 100% owned River Valley PGM Project in the Sudbury region of northern Ontario. PFN also has PGM and nickel-copper projects and properties in northwest Ontario, Saskatchewan, and Alaska. The Company continues to evaluate PGM and nickel-copper properties and projects in North America for potential acquisition opportunities.