Pacific Comox Resources Ltd.: Update on Mabel Project

Toronto, Ontario--(Newsfile Corp. - August 2, 2013) - Pacific Comox Resources Ltd. (TSXV: PCM) -

THIS NEWS RELEASE IS BEING ISSUED TO UPDATE THE NEWS RELEASE DATED FEBRUARY 22, 2013, WHICH REPORTED THE COMPANY WAS CARRYING OUT A C$375,000 NON-BROKERED PRIVATE PLACEMENT OF SECURED, NON-CONVERTIBLE, PROMISSORY NOTES.

1. Calculation of The Quarterly Payments For The Investors
(a) An interest rate at a set rate for a defined period was not an attribute of this debt instrument.

(b) For this debt instrument, starting with the quarterly period commencing January 1, 2013 and ending on June 30, 2016, in lieu of interest, for each $100,000 subscription, an investor would receive a quarterly cash payment equal to 1.60% of the cash value of gold and silver recovered during the quarter, from a test heap leach sampling of the Company's Mabel property less a fixed charge of US$300 per gold equivalent ounce recovered.

(c) The first cash payout to investors would have been made before May 31, 2013 which is 60 days after the end of the quarter ending on March 31, 2013. No payment was made because the test heap leach was not in production and no gold or silver were recovered.

(d) The second cash payout to investors would have been made before July 30, 2013 which is 30 days after the end of the quarter ending on June 30, 2013. No payment was made because the test heap leach was not in production and no gold or silver were recovered.

2. Date Financing Funds Received By Pacific Comox
The funds were received by February 22, 2013.

3. Payment of Finder's Fees In Connection To The Financing
The financing was a non-brokered private placement of secured, non-convertible, promissory notes. An arm's length finder's fee of $6,400 was paid in regard to one private placement placee.

4. Regulatory Approval
The financing remains subject to Exchange approval and the Company anticipates that approval will be received in the next few weeks.

5. Use of Proceeds/Update on Activities
The funds raised in this financing were to be used to advance the Company's test of its gold/silver heap leach at the Mabel project in northern Sonora State, Mexico, and general corporate purposes. The use of the funds did advance the Mabel test leach project but were insufficient to complete the construction and move into production.

By early October 2012 the access road to the Mabel test leach site had been upgraded and the equipment yard area cleared and contoured and the construction of the 10,000 tonne test leach pad site was started.

During late 2012 and early 2013 the leach pad area and the solution ponds were contoured and prepared for the installation of the geomembranes. A suitable small jaw crusher was moved to the site and mounted on a cement foundation.

Additional Funding Required
Subsequent to this financing, additional funding was required to install protective fencing around the leach pad area, install the geomembranes on the leach pad, line the solution ponds, install the necessary solution piping, crush already blasted mineralization, load the crushed mineralization on the test leach pad, commence leaching and have adequate working capital to operate until cash flow was generated from gold and silver production sales.

Comox owns a small electrolytic gold/silver recovery unit which with some modifications is adequate for the test leach pad operation making it unnecessary to purchase similar equipment.

Comox is evaluating financing alternatives for Mabel, including joint ventures, selling other assets and additional debt financing similar to the one clarified above.

Donald Empey
President

Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada Accepts responsibility for the adequacy or accuracy of this release.

For further information please contact Donald Empey at tel: 416 977 4653, fax: 416 977 8335, email at dempey@pacificcomox.com or prapagna@cogeco.ca or visit Pacific Comox's website at www.pacificcomox.com.

Pacific Comox Resources Ltd.
One Dundas Street West, Suite 2300, Box 13,
Toronto, Ontario Canada M5G 1Z3