PPM.V · 2010-05-25

These financial statements, together with the related MD&A, have now been filed and are

Financials

PACIFIC IMPERIAL MINES INC.

1700-700 West Pender Street, Vancouver, BC, V6C 1G8 Canada Telephone: (604) 669.6332 Facsimile: (604) 688.9336 Email: [email protected]

NEWS RELEASE

Vancouver, BC – May 25, 2010 PACIFIC IMPERIAL MINES INC. (“The Company”) announces that it has filed certain financial statements and management discussion and analysis (“MD&A”) in connection with its application for revocation of the Cease Trade Order (“CTO”) issued by the British Columbia Securities Commission on November 6, 2008. The CTO was issued as a result of the Company having failed to file audited financial statements for its financial year ended June 30, 2008 pursuant to the requirements of National Instrument 51-102. These financial statements, together with the related MD&A, have now been filed and are available on SEDAR for review. In addition, certain of the Company’s other financial statements and MD&A have been amended and restated and have also been filed and are available on SEDAR for review. The following is a summary of the material revisions to the Company’s financial statements and MD&A.

On April 28, 2008, the Company became aware that further unauthorized mining activities were being conducted on the Tangshang and Salachong properties by the Operator. The unauthorized activities being carried out by the Operator and the inability of the Company to assert control over its wholly owned subsidiary Guangnan Tangshang Gold Co., Ltd. (“GGC’) and its local Chinese management caused the Company to determine that it had lost control over the net assets and operations of GGC and should have effectively recognized the disposal of GGC effective on December 3, 2007. As consequence, the Company has amended the following financial statements and MD&A to reflect the above facts. In addition, the Company has made other changes for the purpose of enhancing its continuous disclosure record.

Interim financial statements and MD&A for the six months ended December 31, 2007

The Company’s consolidated interim financial statements filed on SEDAR on February 29, 2008 for the six months ended December 31, 2007, in Note 4, incorrectly described the $860,400 (RMB6,000,000) received by the Company from a mining contractor on December 3, 2007 as a “minimum payment in accordance” with the Company’s entitlement to a profit percentage under the agreement with Yunnan Nonferrous Metals Geological Bureau (“YNGB”) dated October 15, 2007.

Accordingly, Note 4(b) of the financial statements has been revised and restated to eliminate the table outlining the cost of the $1,247,580 Mineral Interest acquired, the commitment to issue 7,807,333 common shares representing consideration of $2,107,980, and the $860,000 consideration received as these amounts should not have been recorded as originally presented.

In addition, the amount shown on the balance sheet as Mineral Interests has been restated as the Company effectively recognized the disposal of GGC on December 3, 2007. Accordingly, the Company’s consolidated interim financial statements and MD&A for the six months ended December 31, 2007 filed on SEDAR on February 29, 2008 have been restated, the details of which are disclosed in the amended and restated financial statements.

The corresponding changes to the Company’s MD&A for the six months ended December 31, 2007 have also been made under the headings, “Overall Performance”, ”Mineral Interest”, and “Restatements”.

In addition, the Company’s MD&A originally filed on SEDAR on February 29, 2008 for the six months ended December 31, 2007 has been amended to include the following expanded disclosure:

(1) adequate discussion on factors that have caused variations over the quarters necessary to understand general trends that have developed and the seasonality of the business; and

(2) adequate discussion of the Company’s liquidity and capital resources;

Interim financial statements and MD&A for the nine months ended March 31, 2008

The Company’s consolidated interim financial statements filed on SEDAR on May 30, 2008 for the nine months ended March 31, 2008 incorrectly described the current assets of GGC as restricted current assets and liabilities in GGC on a separate line as liabilities in GGC.

In addition, the amount shown on the balance sheet as Mineral Interests has been restated as the Company effectively recognized the disposal of GGC on December 3, 2007. Accordingly, the Company’s consolidated interim financial statements and MD&A for the nine months ended March 31, 2008 filed on SEDAR on May 30, 2008 have been restated, the details of which are disclosed on the amended and restated financial statements.

In addition, the Company’s MD&A originally filed on SEDAR on May 30, 2008 for the nine months ended March 31, 2008 has been amended to include the following expanded disclosure:

(1) adequate discussion on factors that have caused variations over the quarters necessary to understand general trends that have developed and the seasonality of the business;

(2) adequate discussion of the Company’s liquidity and capital resources; and

(3) adequate disclosure on internal financial reporting controls.

Audited financial statements and management’s discussion and analysis for the year ended June 30, 2008

The Company’s consolidated audited financial statements filed on SEDAR on June 2, 2009 for the year ended June 30, 2008 incorrectly described the $131,537 (RMB 900,000) amount receivable from the Operator as “Settlement amount receivable” on the balance sheet and in a table on note 5 as “Amounts receivable”. In addition, note 5 and 12 of the annual financial statements incorrectly described the $131,537 (RMB 900,000) cash payment received as “payment for the Company’s share of the 2007 profits”. However, the $131,537 payment received was in fact a cash payment from the Operator as partial settlement to the Company for relinquishing its control over GGC and should be properly accounted for and disclosed as “cash payment from the Operator as part of a settlement to the Company for relinquishing its control over GGC”.

Accordingly, the Company’s consolidated audited financial statements and MD&A for the year ended June 30, 2008 filed on SEDAR on June 30, 2008 have been amended and restated to properly describe the nature of the transaction, the details of which are disclosed on the amended and restated audited financial statements and MD&A.

MD&A for the nine months ended March 31, 2009 and three months ended September 30, 2009

The Company’s MD&A for each of the nine months ended March 31, 2009 and the three months ended September 30, 2009 has been amended to include more extensive discussions under the headings “Summary of Quarterly Results”, Liquidity and Capital Resources”, “Changes in Accounting Policies” and “Restatement”.

Audited financial statements and MD&A for the year ended June 30, 2009 and interim financial statements and MD&A for the six months ended December 31, 2009

In addition to the various amended financial statements and MD&As described above, the Company also reports that it has filed its consolidated audited financial statements and MD&A for the year ended June 30, 2009 as well as its interim financial statements and MD&A for the six months ended December 31, 2009.

The Company has ceased to carry on an active business and will continue its efforts to dispose of its legal ownership of GGC and GGC’s interests in the mining and exploration licenses comprising the Tangshang and Salchong mineral projects in China, on terms and conditions acceptable to the Company. The Company also intends to seek new business opportunities to pursue. As a result of its new business direction, the Company has also decided that its website no longer serves a useful purpose and, accordingly, the website has been shut down.

On behalf of the Board of Directors PACIFIC IMPERIAL MINES INC.

s/ “H. Leo King”

H. Leo King President and Director

For further information contact:

PACIFIC IMPERIAL MINES INC.

Leo King, President Tel: 604-669-6332/ Fax: 604-688-9336 Email: [email protected]

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