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3rd season's exploration budget approved for
Platinum Project north of Ketchikan


May 16, 2005

It was announced today that a $1.10 million exploration budget has been approved for the Union Bay Platinum Project, located in southeast Alaska 35 miles north of Ketchikan. The announcement was made by Freegold Ventures Limited (ITF:TSX), Pacific North West Capital Corp. (PFN:TSX), and Lonmin Plc . For the past two years Lonmin has been providing full funding for the exploration programs at Union Bay.

This year's program will focus on the further delineation and drilling of targets identified as a result of previous years' field programs, in particular the targets identified from the airborne electromagnetic and magnetic surveys flown in 2004.

Harry Barr, Chairman of Freegold Ventures Limited noted that we are extremely pleased to have Lonmin elect to fund the program at Union Bay for a third season.

In 2004, the partners carried out an extensive exploration program that consisted of reconnaissance geochemical sampling, core drilling on the Continental zone and a combined airborne magnetic and multi-frequency electromagnetic (EM) survey.

In a news release Freegold Ventures Limited said the 2004 reconnaissance program was concentrated around the Continental Zone, where the 2003 field program discovered platinum values ranging from 1 to 14 grams per tonne. Initial 2004 field work returned significant platinum values from grab samples taken from ultramafic rock units that are located along strike of the PGE-bearing rocks on the Continental zone. The prospective magmatic units that are favorable for PGE mineralization have been traced over a composite strike length of approximately 6 kilometers. These units remain open along strike and at depth.

During 2004, 5,973 feet of diamond core drilling was completed in 10 holes in the Continental zone according to Freegold Ventures Limited. This drilling was targeted at surface saw cut channel sample results collected in 2003. Drilling results at Continental indicate that the favorable magmatic horizon can be traced chemically and physically. The favorable magmatic unit consists of mixed pyroxenite and wehrlite containing variable amounts of magnetite. Similar conclusions were drawn from surface sampling at Continental in 2003. Reconnaissance exploration conducted during and following drilling, was designed to locate and evaluate extensions of the favorable magmatic units defined at Continental.

The airborne geophysical survey consisted of 744 line kms, and resulted in the delineation of several priority targets. Exploration in 2005 will focus on drilling targets generated from the airborne magnetic surveys and ground follow-up.

The Union Bay project is in an Alaska - Uralian type zoned ultramafic complex located at tidewater 35 miles north of Ketchikan, Alaska and consists of 711 unpatented Federal lode mining claims covering 15,940 acres, and 6 State of Alaska mining claims covering 240 acres.

The Platinum Project is a joint venture between Pacific North West Capital Corp, the operator, Freegold Ventures Limited and Lonmin Plc. Lonmin may earn up to a 70% interest in the project by delivering a full feasibility study.

The decision on whether to proceed with commercial production will be made by the JV Management Committee.

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Freegold Ventures Limited

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