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New Pacific Metals Announces Expiry of Bid and Take up of Additional Shares of Tagish Lake Gold

Vancouver, British Columbia (September 28, 2010) â€" New Pacific Metals Corp. (TSXV: "NUX.V") ("New Pacific"), announces that the take-over bid for all of the outstanding common shares ("Tagish Shares") and the offer to purchase all of the secured and unsecured debt (together, the "Offer") of Tagish Lake Gold Corp. ("Tagish Lake") expired on September 27, 2010. Prior to the expiry, New Pacific took up (or already owned) 114,504,229 Tagish Shares, representing approximately 80.1% of the issued and outstanding Tagish Shares (on a non-diluted basis). Prior to the expiry New Pacific did not take up any of the secured or unsecured debt of Tagish Lake.

On September 23, 2010, the board of directors of Tagish Lake (the "Tagish Board") issued its directors’ circular and notice of change recommending that Tagish Lake shareholders accept the Offer and reject the take-over bid dated September 8, 2010 made by YS Mining Company Inc. ("YS Mining") to acquire all of the Tagish Shares and debt of Tagish Lake. YS Mining subsequently announced the withdrawal of its offer on September 24, 2010.

New Pacific's offer per Tagish Share was:

(a) $0.10 in cash; or
(b) 0.1370 of a common share of New Pacific (a "New Pacific Share"); or
(c) a combination of 50% in cash and 50% in New Pacific Shares.

New Pacific will issue an aggregate of approximately 15,323,531 New Pacific Shares to the former holders of Tagish Shares who tendered to the Offer and elected to receive all or part of the consideration in New Pacific Shares. Upon issue thereof, there will be a total of approximately 47,231,519 New Pacific Shares outstanding of which approximately 32% of the outstanding New Pacific Shares will be held by former holders of Tagish Shares.

About New Pacific Metals

New Pacific is engaged in the exploration and development of mineral resources and gold-poly-metallic projects in China and other jurisdictions. New Pacific has extensive experience in implementing high grade resource development projects. For more information about New Pacific, visit the company's website at www.newpacificmetals.com.


For Further Information:
New Pacific Metals Corp.
Investor Relations
Phone: +1 (604) 633-1368
Fax: +1 (604) 669-9387
Email: info@newpacificmetals.com
Website: www.newpacificmetals.com

Forward Looking Information

This news release may contain forward looking statements, being statements which are not historical facts, including, without limitation, discussion of future plans and objectives. There can be no assurance that such statements will prove accurate. Such statements are necessarily based on a number of estimates and assumptions that are subject to numerous risks and uncertainties that could cause actual results and future events to differ materially from those anticipated or projected. New Pacific Metals disclaims any intention or obligations to revise or update such statements. The following factors, among others, could cause actual results or developments to differ materially from the results or developments expressed or implied by forward looking statements; New Pacific may not succeed in acquiring additional Tagish Shares; New Pacific may not be successful in assisting Tagish Lake to obtain, and Tagish Lake may not obtain, the regulatory and other approvals and financing required to develop the Skukum mineral district; Tagish Lake may not be successful in developing the Skukum mineral district.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the release.