Pacific North West Capital grants option to Fire River Gold on Nixon Fork Gold Mine Alaska



    TSX: PFN OTCBB: PAWEF Frankfurt: P7J.F

    VANCOUVER, June 29 /CNW/ - Pacific North West Capital Corp. (PFN) (TSX:
PFN; OTCBB: PAWEF; Frankfurt: P7J.F) announces that it has granted to Fire
River Gold Corp. ("FAU") (CNSX: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.
    PFN's management has examined several possible scenarios for advancing
the Nixon Fork Gold Project, and has had discussions with numerous groups
interested in funding the project. The general consensus of these discussions
is that Nixon Fork should be funded through a company that is completely
focussed on gold. Management therefore feels that the option to FAU provides
the best value to shareholders of PFN for the following reasons:
    PFN has had a traditional focus on Nickel and PGM, and a desire to
continue its focus in this area.
    The dilution necessary to fund the Nixon Fork Project back to production
was a key issue when management reviewed the potential dilution in PFN's share
structure. Management concluded that its share structure may be increased by
two to three times of its current fully diluted 69,167,508 shares in order to
complete the necessary financings.
    The option of Nixon Fork to FAU was completed after a third party
valuation determined a fair value of US$2.8 million for the property. PFN was
able to negotiate a US$3 million agreement. In addition, PFN will be granted
an additional 1 million warrants exercisable at $0.50 for a period of 24
months from the date of closing. PFN will also be repaid amounts expended to a
maximum of the PFN 2009 approved budget of CDN$1,250,000. Subject to
completion of the option agreement, these terms represent a 500% gain for PFN
on the project in less than five months since the original acquisition. PFN
will have no further funding obligation associated with the project.
    The completion of this agreement will allow PFN to become a majority
shareholder of FAU and through this ownership still maintain the benefits from
the upside of the Nixon Fork Gold Mine. In addition, FAU has the appropriate
share structure to raise the necessary capital to re-develop the mine with no
further dilution to PFN.
    Management will continue to focus on expanding our platinum group metals
division, but due to the unprecedented opportunities in the current market, we
are also looking at the acquisition of key under-valued advanced stage
projects outside of the our traditional PGM objectives to increase shareholder
value.
    Management's expertise remains rooted in exploration, and to that end,
PFN is currently negotiating on several advanced stage projects in Canada, and
subject to the completion of one or more of these acquisitions, plans to
expend a minimum of $1 million in Canada before year end.
    We will continue to focus on our tried and proven method of forming
strategic alliances and joint venturing our projects with major and junior
mining companies.

    About Pacific North West Capital Corp:

    Pacific North West Capital Corp. (TSX: PFN; OTCBB: PAWEF; Frankfurt:
P7J.F) is a mineral exploration company focused on Platinum Group Metals
(PGM), precious and base metals. Management's corporate philosophy is to be a
Project Generator, Explorer and Project Operator with the objective of
option/joint venturing projects with major and junior mining companies through
to production. To that end, Pacific North West Capital's current option/joint
ventures agreements are with Anglo Platinum, First Nickel, Kinbauri Gold and
Fire River Gold. Pacific North West Capital Corp. is well funded with an
experienced management team and the ability to take advantage of the
tremendous opportunities that are available in the mining sector today. Our
focus will be to acquire advanced stage precious metals projects, continue to
expand our PGM and base metals division and to look for special situations and
under funded projects in the resource sector.

    About Fire River Gold

    Fire River Gold is a public company focussed on gold exploration in North
America and is currently advancing its 100% owned Draken project in Alaska.
FAU is also reviewing and compiling historic exploration data on its 100%
owned Kansas Creek gold project in Alaska to develop a 2009 exploration
program. Fire River trades on the CNSX under the symbol FAU.
    Pacific North West Capital Corp and Fire River Gold Corp. share directors
in common who have abstained from voting on the Nixon Fork transaction.
    Pacific North West Capital Corp. has approximately $5.5 million in
working capital and securities.

    
    On behalf of the Board of Directors

    Greg Myers
    V.P. Business Development


    The Toronto Stock Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release
    

    Disclaimer: This news release may contain certain "Forward-Looking
Statements" within the meaning of Section 21E of the United States Securities
Exchange Act of 1934, as amended. All statements, other than statements of
historical fact, included herein are forward-looking statements that involve
various risks and uncertainties. There can be no assurance that such
statements will prove to be accurate, and actual results and future events
could differ materially from those anticipated in such statements. Important
factors that could cause actual results to differ materially from the
Company's expectations are disclosed in the Company's documents filed from
time to time with The Toronto Stock Exchange, British Columbia Securities
Commission and the United States Securities & Exchange Commission.





For further information:

For further information: Tel: (604) 685-1870, Fax: (604) 685-8045,
Email: info@pfncapital.com, or visit www.pfncapital.com, 2303 West 41st
Avenue, Vancouver, B.C., Canada, V6M 2A3

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