New Delhi, India

Dear Friends and Shareholders,

On June 30, 2009 we announced a private placement of 15 million units at C$0.07 per unit, including 7.5 million C$0.15 share purchase warrants good for two years, subject to TSX Venture Exchange approval.  http://www.pebcreek.com/pr_063009.pdf

Here is a summary of what we have done and where we are now:

• PEB has Pollution Control Board approval and Environmental Clearance to proceed with production at its Askot deposit. http://www.pebcreek.com/env_clear.pdf
• PEB filed the final Forest Clearance application with the government yesterday, July 8. That is the permit to cut 261 trees and to operate the mine underground under forest land.  It is the last permit needed for production.
• The Government of India and the state of Uttarakhand have both approved our Mining Lease.
• PEB is still targeting late 2010 for a bankable feasibility study and late 2011 for commercial production.
• PEB?s drilling ?twinned? a number of government drill holes and confirmed their results.  This provided confidence in a NI 43-101 and JORC compliant indicated mineral resource estimate of 1.86 million tonnes of high grade copper, zinc, lead, silver and gold.  http://www.pebcreek.com/pr_20080930.pdf
• The recoverable metal contained in the Askot deposit as it is currently known is 87 million lbs of copper, 200 million lbs of zinc, 123 million lbs of lead, 1.5 million ounces of silver and 26 thousand ounces of gold (after deducting losses in pillars and in the mill).
• The boundaries of the Askot deposit are still unknown: our next drill holes will be to the northwest and southeast where numerous coinciding EM and soil geochemistry anomalies outline drill targets; and downward below 180 metres (500 feet) deep, the depth of the deepest previous drill holes.
• Geologic evidence is that at least 10 million tonnes of similar grade remain to be drilled (or five times the recoverable metal above); and the potential exists for 20 or 30 million tonnes.
• The Indian Ministry of Mines is determined to smooth the way for more foreign direct investment in exploration and mining, with accompanying technology transfer.
• With its Askot project PEB is the most advanced foreign company exploring in India.  We have the full confidence and support of the Ministry of Mines, the various state governments and the communities where we are working.
• PEB is a first mover, preparing for new discoveries and a mining boom in India.  We have 16 other prospects covering nearly 20,000 square km (5 million acres) in 6 states.  These are selected for gold, copper, and silver-lead-zinc targets, as well as nickel-PGM and diamonds.
• Finally, this is a bargain price for a company with our mineral asset and our momentum in India.

This placement is intended as working capital while we arrange for joint-venture type financing directly into Adi for the additional drilling and bankable feasibility study.  If all goes well, we can be drilling after the close of the summer monsoon ? in November or December.

If you wish to subscribe for shares and warrants, please write or call me for details.

Best regards, Andrew