Pebble Creek Mining Ltd. announces completion of $2.1 million private placement



    VANCOUVER, Dec. 20 /CNW/ - Pebble Creek Mining Ltd. ("Pebble Creek" or
the "Company") is pleased to announce that it has completed a non-brokered
private placement (the "Private Placement") of 5,270,000 Units at $0.40 per
Unit for gross proceeds of $2,108,000. Each Unit was comprised of (a) one
common share of the Company; (b) one-half of one Series A common share
purchase warrant (an "A Warrant"); and (c) one-half of one Series B common
share purchase warrant (a "B Warrant") (the A Warrants and the B Warrants are
collectively referred to as the "Warrants").
    Each whole A Warrant is exercisable for one common share of the Company
for a period of two years at a price of $0.75. If the closing trading price of
the Company's common shares on the TSX Venture Exchange is $1.50 per share or
higher for any 20 consecutive trading days during the term of the A Warrants,
the Company may elect to provide notice of acceleration of the exercise term
to holders of the A Warrants and the A Warrants will then expire thirty days
after such notice is given.
    Each whole B Warrant is exercisable for one common share of the Company
for a period of two years at a price of $1.50.
    Of the total Units sold under the Private Placement, 5,000,000 Units were
purchased by India Resources Limited ("India Resources"), representing
approximately 17% of the issued and outstanding common shares of the Company
(or 29% of the issued and outstanding common shares assuming the full exercise
by India Resources of all Warrants comprising the Units it has purchased).
    India Resources is a company based in Perth, Australia and listed on the
Australian Stock Exchange (ASX) under the trading symbol "IRL". India
Resources is heavily involved in India's growing mineral resources sector. In
a partnership with Hindustan Copper Ltd. ("HCL"), India Resources reopened
HCL's Surda copper mine in the Singhbhum Copper Belt of Jharkhand state and
started producing concentrates in November. India Resources also has a
Memorandum of Understanding with HCL to explore other copper prospects in
three states; it holds Reconnaissance Permits on copper, zinc and lead
prospects in Rajasthan, and it has acquired several diamond prospects. For
more information please refer to
    Andrew Nevin, President and CEO of Pebble Creek, commented: "We are
pleased to have this association with India Resources. It is one of a group of
companies with an institutional culture of mineral production and sales. We
welcome India Resources as a shareholder."
    The net proceeds from the Private Placement will be used for exploration
and development of the Company's projects, particularly the Askot massive
sulphide deposit, for acquisitions and for working capital.
    The Private Placement is subject to final approval of the TSX-Venture
Exchange. As the exercise of Warrants by India Resources may result in India
Resources holding, in the aggregate, greater than 20% of the issued and
outstanding common shares of the Company, shareholder approval will be sought
at an upcoming Pebble Creek shareholders meeting to approve of the possible
change of control resulting from India Resources' increased shareholdings on
account of Warrant exercises. Pending such shareholder approval, India
Resources has agreed not to exercise any Warrants which would result in India
Resources, together with any of its joint actors, holding in the aggregate
greater than 20% of the issued and outstanding common shares of Pebble Creek.
    Subject to TSX Venture Exchange approval and applicable securities laws,
the Company will pay a total of $7,040 to certain persons as finder's fees in
connection with the Private Placement.
    The common shares and Warrants comprising the Units and the common shares
issuable upon exercise of the Warrants are subject to a four-month hold period
expiring on April 20, 2008.

    Pebble Creek Mining Ltd. is one of the leading Canadian companies in
India's metals exploration sector. Its Askot property located in Uttarakhand
State is a massive sulphide copper and zinc deposit that was previously
drilled and tunnelled by government agencies. Current drilling is aimed at
establishing a NI 43-101 compliant mineral resource. The Company also holds
interests in two other mineral properties and has fourteen applications for
mineral properties in progress.

         Not for dissemination or distribution in the United States.

    The securities issued by the Company have not and will not be registered
under the United States Securities Act of 1933, as amended (the "1933 Act"),
or the securities laws of any state of the United States, and may not be
offered or sold in the United States absent registration or an applicable
exemption therefrom under the 1933 Act and the securities laws of all
applicable states.

    Gyan C. Singhai, P.Eng., Executive Chairman
    On Behalf of the Board of Directors of Pebble Creek Mining Ltd.

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

    %SEDAR: 00023083E

For further information:

For further information: Gyan Singhai, Executive Chairman, Telephone:
(604) 696-6101, Fax: (604) 696-6196; Mike Romanik, Investor Relations, Verenex
Capital Corp., Telephone: (204) 724-0613

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Pebble Creek Mining Ltd.

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