Clarification of Technical Disclosure in Feasibility Studies

VANCOUVER, Dec. 3, 2012 /CNW/ - Plains Creek Phosphate Corporation ("Plains Creek", the "Company") (TSX‐V: PCP) is issuing this news release as a result of comments received from the British Columbia Securities Commission (the "BCSC") on the "Feasibility Study of the Direct Shipping Option of the Farim Phosphate Project, Guinea-Bissau, An NI 43-101 Report" and the "Feasibility of the Beneficiated Phosphate Rock Concentrate Option of the Farim Phosphate Project, Guinea-Bissau, An NI 43-101 Report" (the "Reports") by Michael Short, BE. FIMMM, CEng, Richard Elmer, CEng, MIMMM (CP), Dr. Martin Preene, CEng, Dr. Marcelo C Godoy, MAusIMM (CP), Terry Kremmel, PE (MO and NC), SME (CP), Hendrik J.H. Otto, PrEng (SA) and Matthew Clark, P.E., CEng, PMP, on the Company's Farim Phosphate Project, Guinea-Bissau, filed on SEDAR on November 23, 2012 and dated effective November 2, 2012. The Reports were announced in a news release of the Company dated October 9, 2012 and summarized in a news release dated November 24, 2012 (the "News Releases"). As the Reports are not currently compliant under National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"), the News Releases, the resource estimates, mining studies, and the resulting reserve estimates disclosed thereunder should not be relied upon until the Company files an updated technical report which is compliant under NI 43-101.

To address the concerns raised by the BCSC about the Reports and the resource estimates, mining studies, and the resulting reserve estimates contained therein for the Farim deposit, and to satisfy requirements of NI 43-101, the Company will prepare a single combined feasibility study technical report (the "Combined Report") and will file the Combined Report on SEDAR as soon as practicable on or before January 17, 2013. The Company will take the following steps to make the Combined Report NI 43-101 compliant:

• amend the disclosure to show power costs separately from the combined water and power costs, including disclosure of gross power consumption and power cost individually and in more detail, using standard industry measures, with explanations of the basis for estimation;
  
  
• provide an after-tax economic analysis, with a detailed analysis of applicable taxes and royalties and the basis for assumption of those applicable taxes which provides reasonable grounds for certainty; and
  
  
• provide clarification that product pricing has a level of certainty supported by quotes, contracts, agreements or industry information.

In addition, the BCSC has noted that the Company's website is out-of-date and as a result it could be misleading. Accordingly, the Company will be updating its website to avoid such misleading information. In the meantime, the Company cautions not to rely on the information on its website until it has been updated in compliance with NI 43-101 and the Company has issued a news release confirming the update. The Company expects to complete this update as soon as practicable on or before January 17, 2013.

About Plains Creek Phosphate Corporation

Plains Creek Phosphate Corporation is a Canadian mining and exploration company focused on advancing the Project in Guinea‐Bissau, West Africa through the company, GB Minerals AG. The Project currently comprises a phosphate deposit consisting of one continuous flat lying phosphate bed with a Mineral Resource estimate, disclosed in the Company's Feasibility Studies on the Project in accordance with National Instrument 43-101, which defines a Measured Resource of 64.6 MT at an average grade of 29.11% P₂O₅, an Indicated Resource of 28.1 Mt at an average grade of 27.68 % P₂O₅, and an Inferred Resource of 18.3 Mt at an average grade of 28.66 % P₂O₅ and states total proven and probable reserves of 33.0 Mt (dry) with an average ROM P₂O₅ grade of 30.4%.  The Measured and Indicated Resource estimates stated above are inclusive of the resources comprising the Proven and Probable Reserve estimates. The Feasibility Studies are authored by the Qualified Persons listed above, are filed on SEDAR and are publicly available under the Company's profile at www.sedar.com. A two-phased development is planned for the Project as an open pit mining operation. Phase One consists of a 1.3 Mt per year phosphate rock product direct shipping option project or a 1.0 Mt per year beneficiated phosphate rock concentrate project and Phase Two consists of the production of 2.0 Mt per year of phosphate rock concentrate and includes a beneficiation plant and associated infrastructure, pipeline and port. As indicated above, the supporting reports are under amendment, and the Company will promptly disclose if any material changes to a mining study or mineral reserves result from amendments to its reports.

The Company's shares are listed on the TSX Venture Exchange under the trading symbol "PCP". For additional information, please visit us at www.plainscreek.com.

ON BEHALF OF THE BOARD

"Carson Phillips"
Carson Phillips
Vice‐President, Corporate Development and Director

Cautionary Statement

Statements in this release may be viewed as forward‐looking statements. Such statements involve risks and uncertainties that could cause actual results to differ materially from those projected. There are no assurances the Company can fulfill such forward‐statements and the Company undertakes no obligation to update statements. Such forward looking statements are only predictions; actual events or results may differ materially as a result of risks facing the Company, some of which are beyond the Company's control.

The reader should be cautioned that there are risks that could affect the potential development of the Farim Phosphate Project's (the "Project") mineral resources, which include: the political instability in Africa and Guinea‐Bissau in particular, which is where the Project is located; and that additional financing will be required to ultimately develop the Project and the ability to obtain such financing on favorable terms will be affected by prevailing market conditions. A more detailed discussion of such risks are outlined in the Company's Management's Discussion & Analysis and the Reports, all of which are filed under the Company's profile on SEDAR at www.sedar.com.

NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

SOURCE: Plains Creek Phosphate Corp.

Carson Phillips
Vice‐President, Corporate Development and Director
Telephone: (604) 569‐0721  E‐mail: [email protected]