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New Pacific Metals Uses Private Placement Proceedings for its Exploration Projects

New Pacific Metals Corp. (TSX VENTURE:NUX), announces that, further to its press releases dated December 3, 2010 and December 6, 2010, New Pacific has completed the brokered private placement of 11,500,000 units of New Pacific at a price of $1.35 per Unit and non-brokered private placement of 6,500,000 Units of New Pacific at a price of $1.35 per Unit.

The Brokered Private Placement was conducted on a best efforts basis by Salman Partners Inc. and Raymond James Ltd. (the "Agents"). The Agents fully exercised an over-subscription option granted by New Pacific to place an additional 1,000,000 Units at $1.35 per Unit. Each Unit is comprised of one common share and one-half of one common share purchase warrant. Each whole warrant is exercisable at $2.00 per common share for an 18 month period expiring June 22, 2012.

The proceeds of both private placements will be used to finance continuing exploration and development activities of New Pacific's exploration projects and for its general working capital.

In connection with the Brokered Private Placement, the Agents received a cash commission of 6% of the gross proceeds raised under the Brokered Private Placement and that number of transferable broker warrants equal to 3% of the aggregate number of Units sold under the Brokered Private Placement.

All securities issued pursuant to the private placements are subject to a four month hold period expiring on April 23, 2011.

Source:

New Pacific Metals Corp.

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