PEBBLE CREEK MINING LTD. UPDATES ASKOT DRILLING

TSX-V: PEB

VANCOUVER and NEW DELHI, India, Sept. 8 /CNW/ - Pebble Creek Mining Ltd. (the "Company") is continuing the drilling program started this summer at its Askot massive sulphide property in the Himalayan foothills, Uttarakhand, India.

The Askot mineralization strikes northwest and dips steeply northeast. It consists of one, two or three parallel layers of massive sulphides sandwiched between upturned beds of metamorphosed volcanic tuffs and sedimentary rocks. Two step-out core holes are in progress to test down-dip extensions of mineralization: DDH 019A and DDH 020.

Drill hole 019A is in progress at 227 metres using a downhole directional drilling motor to curve it from a minus 58 degree inclination to a minus 30 degree inclination. An earlier daughter hole, 019, from the same stem was abandoned at 306 metres owing to a tendency for the drill pipe to twist off at a sharp part of the curve. Hole 019A started from a new kickoff point at 210 metres in the steep stem.

Target is expected at about 450 metres, or nearly 200 vertical metres below the deepest previous data. The 019A target is a potential continuation of mineralization intersected in hole 200-1 which the Company drilled in 2006. That intersection was 1.75 metres of 3.13% copper, 1.73% lead, 2.42% zinc, 61 grams of silver per tonne, and 0.28 grams of gold per tonne.

Drill hole 020 is located along strike 325 metres southeast of 019A. The hole is currently at 300 metres and the target is expected at 380 metres. Hole 020 was collared at an inclination of minus 58 degrees to test the downdip extension of a mineralized layer previously intersected in a hole drilled by the state government mines department 30 years ago. Historic data report the previous hole intersected 5.5 metres grading 1.44% copper, 0.35% lead and 4.44% zinc. The government agency did not assay for silver or gold.

Testing the down-dip extensions is important because the depth capability of equipment used by previous government agencies averaged only 180 metres.

Dr. William A. Sheppard, EuroGeol, MAusIMM, MIMM, and Dr. Andrew E. Nevin, PEng, both Qualified Persons under National Instrument 43-101, are responsible for directing this work.

The Company has worked in India for 15 years and is a leader in mineral exploration in the country.

This news release contains forward-looking statements that address future events and conditions and are subject to various risks and uncertainties. The Company's actual results, programs and financial position could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, some of which may be beyond the Company's control. These factors include: the availability of funds; the timing and content of work programs; results of exploration activities and development of mineral properties, the interpretation of drilling results and other geological data, the uncertainties of resource and reserve estimations, receipt and security of mineral property titles; project cost overruns or unanticipated costs and expenses, fluctuations in commodity prices; currency fluctuations; and general market and industry conditions.

Forward-looking statements are based on the expectations and opinions of the Company's management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.

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.

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For further information: Andrew Nevin, Ph.D., P.Eng., President & CEO, Telephone: [phone]; Mike Romanik, Vice President, Telephone: [phone]