Rio Minas is a large property consisting of two concessions totaling 19,510 hectares.  The target is a silver-rich, poly-metallic skarn hosted in cretaceous limestone adjacent to a granodiorite intrusive.

Rio Minas occurs within a hundred kilometer long NW trending structural belt in central Oaxaca State, Mexico which hosts several skarn prospects and other advanced exploration projects. Regional reconnaissance has delineated an extensive zone of intrusions along this belt that have affected the limestone rocks generating numerous skarn occurrences over an area of more than 100 square kilometers.

At Rio Minas, the silver-rich skarn zones are associated with a large circular feature about 5 kilometers in diameter and are believed to represent the surface expression of a major intrusive stock underlying the calcareous rocks. Five skarn zones have been identified within a 6 kilometer long NE trending corridor. Continuous rock channel samples taken across a 400 meter long, 100 meter wide outcrop exposure in one zone returned 63 meters of 0.90% copper and 75 g/t silver.

Pinnacle has an option through its joint venture partner Chesapeake Gold Corp (CKG:TSX-V) to earn up to 51% in both the Rio Minas and La Calavera properties concurrently in consideration of US$1.8 million and exploration expenditures of US$6 million over 5 years on either/or both properties collectively.  Pinnacle can earn an additional 19% of both properties by completing a bankable feasibility study by December 31, 2014 and providing Chesapeake with a US$3 million payment (cash and/or half shares) and providing production financing for either property.

Currently through the second quarter of 2008, Pinnacle will continue a soil sampling program in rough terrain covering a 3.75 km² area.   The program consists of 13 parallel sample lines on 100 m spacing with sample stations every 25 m.  Assays have been received for 568 samples and 161 additional samples have been submitted for analysis. Assays received to date reveal large copper and silver anomalies with soil assays ranging up to 0.3% copper and up to 36 gpt silver. Over 40% of the soil sampling program has been completed.

One particular zone, the Zapoteca prospect, falls within the southwestern portion of the soil sampling area and awaits planned sampling.  The zone contains conspicuous blue copper minerals in road cuts, float, and old prospect pits.  Past bedrock sampling at Zapoteca produced favorable assays listed below:

RIO MINAS - ZAPOTECA BEDROCK SAMPLING

The Zapoteca Zone - 2008

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Once the soil sampling program is completed and interpreted, an induced polarization survey will be conducted along the same sample survey lines.  An aggressive drill program, which is planned for the third quarter of 2008, will be determined from the geochemical and geophysical surveys.