Pacific Iron Ore Corporation announces that it has signed a letter of intent with Century Energy Limited pursuant to which it will grant to Century the right for Century to acquire up to a 40% undivided interest in POC's St Anthony and Best King Bay mineral properties located in the Beckington Lake, Squash Lake and Fourbay Areas of Patricia Mining Division, Ontario.

The Property is comprised of approximately 8,784 hectares, and is more fully described in the NI 43-101 technical report dated June 12th 2009.

The non binding Letter of Intent is subject to several conditions including applicable regulatory approval, board of director's approval, due diligence, an updated NI 43-101 to substantiate the proposed Phase 1 work program and completion of a financing by Century. Century intends to complete an equity private placement offering of a minimum of USD 2 million prior to or concurrent with the closing of the Transaction. The Transaction is scheduled to close no later than September 29th 2012 or such other date as determined by Century and POC.

Century shall be entitled to earn an initial 20% undivided interest in the Property by making a USD 2 million cash payment for expenditures on the Property's Phase 1 work program. Century shall be entitled to earn an additional 20% undivided interest for a further USD 2.5 million payment within 12 months of the closing of the Transaction or USD 3 million payment within 24 months of the closing of the Transaction.

Source - Pacific Iron Ore Corporation

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