GOOD ASSAY RESULTS FROM TANTALUM SUBSIDIARY

February 24, 2004 Denver, Colorado Pinnacle Resources, Inc. (PNRR:OTCBB; PIN: Frankfurt) announced today that Titan Processors, the company's South African tantalum refinery, has successfully completed a one month long controlled production run. Titan's pilot plant produced its first batch of tantalum pentoxide attaining a product purity of 99.5%. Dr. Jan Becker, Pinnacle's technical director, indicated that at least 0.4% of the impurities were the result of dust contamination that is easily controllable. Further, Dr. Becker expressed his confidence that a production grade of 99.9% will be achieved by the time Titan commences commercial sales. At this level of purity the product commands a premium price in the market place.

Pinnacle and its partner in the beneficiation process, Rappa Industries, plan to enlarge the current process facility such that deliveries of 15,000 kg of Ta2O5 per month will be realized. Dr Becker indicated that would be the equivalent of a 750 kg per day production rate and that it would take about six months to enlarge the plant. The modular design of the plant enables expansion of the present daily capacity by a ten-fold increase and would cause minor interruptions, without an extended shutdown or loss of current production.

Titan has submitted samples of its product to European, Far Eastern and American users of tantalum. These users manufacture the tantalum metal that is mainly used as an electronic component in cell phones and as an additive in the production of high-temperature steel alloys.

Pinnacle and Rappa have secured the necessary tantalite ore feedstock for the Titan plant from South Africa, Mozambique and Zimbabwe sources and are in negotiations to acquire high grade Nigerian tantalite ore as well.

This news release contains forward looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. These forward looking statements include expressions of beliefs, expectations, hopes, or intentions regarding the future which may or may not come to pass. It is important to note that actual results may differ from those expressed in such forward-looking statements. Although Pinnacle believes its properties have potential, they are in early stages of exploration and development which have not shown to contain proven economic reserves. There can be no assurance that if identified, any resources might be economically extracted, or funding available, or that any such properties might be acquired in the future. If projects are acquired, there can be no assurance of any economic benefit, of cash flow to the company.

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