Pacific North West Capital Acquires 100% Interest in the River Valley Platinum Group Metals (PGM) Project, ON

• PFN acquires 100% of the River Valley Platinum Group Metals (PGM)
  Project by purchasing Anglo Platinum’s 50% interest
• Anglo Platinum obtains a 12% interest in PFN
• The River Valley Project is one of Canada’s largest primary Platinum
  Group Metal deposits with significant exploration upside
• NI43-101 Compliant Resource
• Over 110,000 metres in 550 holes drilled to date
• Platinum Group Metal prices are moving to record highs

TSX: PFN OTCBB: PAWEF Frankfurt: P7J

VANCOUVER, Jan. 31 /PRNewswire-FirstCall/ – Pacific North West Capital Corp. (“PFN” or “the Company”) TSX: PFN; OTCBB: PAWEF; Frankfurt: P7J) is pleased to announce that an agreement to purchase the 50% ownership
in the River Valley PGM project, currently owned and held in a joint
venture with Anglo Platinum Limited (“Anglo Platinum”), has been
completed. The transaction, subject to the approval of the TSX, will
provide PFN with an undivided 100% interest in the joint venture
project.

Under the terms of the agreement, Anglo Platinum will exchange its 50%
interest in the unincorporated Joint Venture, for a 12% interest in
PFN, based on the issued and outstanding common shares of PFN as of
November 30, 2010 (67,643.008). The aggregate purchase price for the
50% interest in the River Valley PGM project is:

PFN will issue the shares in the Company to Kaymin Resources Ltd.
(“Kaymin”), a wholly owned subsidiary of Anglo Platinum Limited, in
exchange for Kaymin’s 50% interest in the joint venture. The all-share
transaction is expected to close upon the acceptance by the Toronto
Stock Exchange.

Harry Barr, President and CEO of PFN commented, “The shares issued to Kaymin will make Anglo Platinum a strategic
investor in PFN. Anglo Platinum will have the opportunity to
participate in the upside of the project through the future success of
the Company and at the same time, PFN will be able to seek new sources
of funding to advance the River Valley PGM project.”

The River Valley PGM project was acquired in 1998 by PFN through a
number of transactions. PFN discovered significant PGM occurrences on
the property and entered into a joint venture agreement with Anglo
Platinum in 1999. PFN remained operator of the joint venture and
defined a NI43-101 compliant reportable resource of 8.53 million tonnes
containing 353,200 ounces of palladium (1.29 g/t), 116,800 ounces of
platinum (0.43 g/t) and 20,400 ounces of gold (0.07 g/t) in the
“measured” category and an additional 22.02 million tonnes containing
600,700 ounces of palladium (0.85 g/t), 212,800 ounces of platinum
(0.30 g/t) and 39,000 ounces of gold (0.06 g/t) in the “indicated”
category and “inferred” resources of 2.39 million tonnes containing
67,000 ounces of palladium (0.87g/t), 23,800 ounces of platinum
(0.31g/t) and 4,000 ounces of gold (0.05 g/t) using a 0.7 g/t cut off
(pt/pd) (PFN press release March 27, 2006).

“Stand alone PGM projects are rare in North America. The PFN/Anglo
Platinum agreement is the second major acquisition of its kind in
recent months. It was just over 4 months ago, in October 2010, when
Stillwater Mining acquired the platinum assets of the Canadian mining
junior Marathon PGM in a cash and shares deal that was valued at $118
million.” Spiros Cacos, Manager Investor Relations.

The Company will now focus on advancing the project further through
renewed exploration activities. Prior work had left several target
areas where mineralization was open to depth and along the nine
kilometre strike length.

Similarly, new target areas were discovered that returned anomalous
values of PGM’s but due to the financial crisis of 2008, were not
followed up. Induced polarization (IP) surveys were instrumental in
locating and identifying mineralized zones on the property. The Company
now intends to enhance the earlier work with more recent 3D technology
whereby the mineralization can in principle be traced to deeper depths
and contemporaneously mapped close to surface in new target areas. The
Company will provide an update of the exploration strategy in the near
future.

“The timing of this agreement could not be better. We expect that the
enthusiasm for global PGM exploration will escalate in the coming
months. The River Valley Project has many advantages over other PGM
exploration and development projects, mainly a defined resource located
only sixty kilometres from the nickel-copper-PGM smelting and refining
activities in Sudbury, Ontario.” Anthony Kovacs, VP Exploration.

Qualified Person Statement

This news release has been reviewed and approved for technical content
by John Londry, a qualified person under the provisions of national
instrument 43-101. 

About the River Valley PGM Project

The River Valley PGM project is located in the Dana and Pardo townships
of Northern Ontario, approximately 60km east of Sudbury, Ontario. The
project is road accessible in Canada’s premier Ni-Cu-PGM mining and
smelting district which boasts perfect infrastructure and community
support for mining activities.

The River Valley project mineral claims were optioned by PFN in 1998
following the discovery of highly anomalous PGM values in grab samples.
The property was subsequently optioned by PFN to Anglo Platinum in
1999. Initial exploration was guided by geochemical and induced
polarization surveys with subsequent drilling proving up significant
mineralization at Dana Lake and Lismer’s Ridge. A mineral resource
estimate in accordance with the guidelines set out by NI 43-101 was
published in 2006. Anglo Platinum continued to fund exploration under the terms of the
option and joint venture agreement and invested over $22M in the
exploration of the property for a 50% stake in the joint venture. In
order for Anglo Platinum to retain their interest in the Joint Venture,
they were required to fund all exploration to completion of a
feasibility study, but as a result of capital expenditure reductions
during the global financial crises, no new funds were allocated to the
project, above and beyond the minimal holding costs.

PFN and Anglo Platinum were able to come to terms whereby PFN could
acquire Anglo Platinum’s 50% stake in the River Valley JV giving PFN
100% of the River Valley PGM project by offering 12% of its current
outstanding shares to Anglo Platinum. This would enable PFN to seek
external funding for the project while Anglo Platinum could benefit
from any future success of the project through its share ownership in
PFN.

There are no other encumbrances on the River Valley PGM project
associated with the terms of the sale to Anglo Platinum after an 18
month early disposition period lapses. There are currently no back-in
rights or off-take agreements between the two parties. The property is
still subject to a 3% NSR that is payable to the underlying vendors.

• Table 1. Measured and Indicated Resources Using a 1.0 g/t cut off
  (Pt/Pd): 19.3 million tonnes containing 733,000 ounces palladium (1.18 g/t),
  245,100 ounces of platinum (0.39 g/t) and 43,600 ounces of gold (0.07
  g/t) with an additional 881,000 tonnes containing 38,400 ounces of
  palladium (1.36 g/t), 13,100 ounces of platinum (0.46 g/t) and 2,100
  ounces of gold (0.07 g/t) of Inferred Resources using a 1.0 g/t cut off
  (Pt/Pd).
  
  
  

• Table 2. Measured and Indicated Resources using a 0.7 g/t cut off
  (Pt/Pd) of 30.5 million tonnes containing 953,900 ounces of palladium (0.97
  g/t), 329,500 ounces of platinum (0.34 g/t) and 59,500 ounces of gold
  (0.061g/t) with an additional 2.3 million tonnes containing 67,000
  ounces of palladium (0.87g/t), 23,800 ounces of platinum (0.31g/t) and
  4,000 ounces of gold (0.05 g/t) of Inferred Resources using a 0.7 g/t
  cut off (Pt/Pd).

About Pacific North West Capital Corp:

Pacific North West Capital Corp. (TSX: PFN; OTCQX: PAWEF; Frankfurt:
P7J.F)  is a mineral exploration company focused on the exploration and
development of one of Canada’s largest primary Platinum Group Metals
(PGM) deposits, the River Valley PGM Project located in the Sudbury
region of Ontario. In addition, the Company has an active gold
exploration program near Val d’Or, Quebec, one of the world’s most
famous gold and base metal producing regions. The Company is also
advancing a polymetallic project in the Iskut River region of British
Columbia. Pacific North West Capital Corp. is also a significant
shareholder of Fire River Gold Corp (FAU:TSX.V) who is developing the Nixon Fork Gold Mine in Alaska.

Pacific North West Capital Corp. is well funded and plans to use
management’s technical, financing and negotiating skills to acquire
additional platinum group metals, base metals and precious metals
projects on an international scale.

Management’s corporate philosophy is to be a project generator, explorer
and project operator with the objective of option/joint venturing
projects with major and junior mining companies through to production. Pacific North West Capital Corp. is a member of the International Metals Group of Companies (www.internationalmetalsgroup.com).

On behalf of the Board of Directors

(signed)

Harry Barr

President & C.E.O.

Disclaimer: This news release may contain certain “Forward-Looking
Statements” within the meaning of Section 21E of the United States
Securities Exchange Act of 1934, as amended. All statements, other than
statements of historical fact, included herein are forward-looking
statements that involve various risks and uncertainties. There can be
no assurance that such statements will prove to be accurate, and actual
results and future events could differ materially from those
anticipated in such statements. Important factors that could cause
actual results to differ materially from the Company’s expectations are
disclosed in the Company’s documents filed from time to time with The
Toronto Stock Exchange, British Columbia Securities Commission and the
United States Securities & Exchange Commission.

SOURCE Pacific North West Capital Corp.