3,535,000 PINNACLE SHARES RETURNED TO TREASURY

January 6, 2004 Denver, Colorado Pinnacle Resources, Inc. (PNRR:OTCBB; PIN:Frankfurt) announced today that it had received 2,535,000 Pinnacle shares from the District Court in Houston, Texas.

These shares were the result of the favorable court judgment in a matter involving the rescission of a service contract. The shares were submitted to the transfer agent for cancellation and returned to Pinnacle's treasury. Another 300,000 shares will be returned in the near future.

Additionally, the company returned another 1,000,000 shares to the treasury which were previously issued, but undelivered, pending the outcome of a due diligence examination of a gold property in Ghana.

R.A. "Dutch" Hildebrand, Chief Financial Officer of Pinnacle, indicated that Pinnacle had 15,018,050 shares issued and outstanding after these cancellations.

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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