Papuan precious metals KUD001 intersects targeted hydrothermal Breccia

Drill holes KUD001 (azimuth 130°, dip 45°) and KUD002 (azimuth 130°, dip 45°) were drilled in the same section below Trench 12 (39m averaging 3.89g/t Au; see news release dated February 22, 2011). KUD001 intersected the target hydrothermal breccia from 2.0m to 28.0m down hole. Drill-hole KUD002 tested the hydrothermal breccia below KUD001 and intersected it from 39.0m to 55.0m down-hole. These intersections suggest a steeply dipping breccias body, narrowing slightly at depth. KUD001 was drilled to a total depth of 79.60m and KUD002 was completed at 100.60m.

Holes KUD003 and KUD004

Drill holes KUD003 (azimuth 300°, dip 45°, 103.70m total depth) and KUD004 (azimuth 300°, dip 45°, presently 208.7m depth) were collared below Trench 2 (27m averaging 3.58g/t Au). KUD003 intersected altered and stockworked latite from the surface to 44.7m and hydrothermal breccia over a 13.9m down-hole interval from 44.7m to 58.6m. Drill-hole KUD004, currently drilling, is designed to provide a deeper test below KUD003. It has intersected two intervals of target hydrothermal breccia of 36m and 13.5m width from 144.0m to 180.0m and 193.7m to 207.2m, respectively. The hole is currently drilling at 181.70m in argillised latite and is expected to be drilled to a total depth of approximately 230m.

Holes KUD005 and KUD006

Drill holes KUD005 and KUD006 will test the deeper copper porphyry potential underlying the coincident Au and Cu soil anomaly and copper occurrences at the surface in the La’mau’sing (or Zone A) area. Hole KUD005 will be drilled to an approximate depth of 180m and hole KUD006 to 300m.

Assays

Assays will be reported when available. Drill core from KUD001 has been logged and sampled. Logging and sampling of KUD002 is nearing completion. Samples are being sent to Genalysis Laboratory in Lae, PNG, for sample preparation prior to pulps being sent to Townsville, Australia for analysis. Gold analyses will include standard 25g lead collection Fire Assay followed by Flame Atomic Absorption Spectrometry.

The New Hanover Project

New Hanover is an outstanding opportunity for the discovery of Lihir-style gold mineralisation in a geological terrane that has been bypassed by modern mineral exploration for the past 22 years. The project comprises two 100% owned exploration licences (EL 1566 & ELA 1856) covering 591.6 km2 at the northwestern end of the Lihir-Tabar alkaline volcanic belt, host to the giant Lihir and Simberi gold deposits. Andesitic-dacitic volcanic rocks are widespread on New Hanover. They were erupted from a coalesced complex of Late Miocene-Early Pliocene stratovolcanoes that were built upon older Late Eocene-Late Oligocene submarine andesitic and basaltic rocks. Diorite, microdiorite and micromonzonite stocks intrude the younger volcanic rocks. Of particular interest is the presence of alkalic rocks, having relatively low silica content and enriched in sodium and potassium, at the Kuliuta epithermal gold prospect, indicating that New Hanover is geologically related to the Plio-Pleistocene Lihir-Tabar chain of alkaline volcanic islands.

Further details of the New Hanover project are available at www.ppmpng.com.

The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 and reviewed on behalf of the company by Ian David Lindley, President & Chief Operating Officer of Papuan Precious Metals Corp, a Qualified Person. Dr. Lindley has First Class Honours and Ph.D. degrees in Geology, 34 years mining industry experience, and is a member of the Australian Institute of Geoscientists.

Read the full news release here.