BELLINGHAM, Wash., Aug. 23, 2005 (PRIMEZONE) -- Pinnacle Developments Inc. (Pink Sheets:PNCV) announces the acquisition of additional timber supplies to supplement the 10 year 60,000 m3 timber tenure to be acquired through the acquisition of the milling assets in Ft. St. James, British Columbia, Canada.
Management has determined that the assets located in Ft. St. James, B.C., Canada have the capacity to mill 200,000 m3 per year or an additional 140,000 m3 over and above the 60,000 m3 tenure purchased with the mill assets. To allow the mill to operate at full capacity, management has decided to purchase the timber being harvested by private landowners and logging contractors as a result of the pine beetle epidemic in British Columbia. This timber must be harvested on the short term to preserve the value of the wood and to curtail the spread of the pine beetle attack. As a consequence of this accelerated harvesting, log supplies have increased with a corresponding decrease in log prices, making it extremely favorable for the mill to purchase its additional timber requirements on the open market; this will ensure an adequate supply of timber for processing for the foreseeable future. With increasing demand for semi-finished and finished wood products, this decrease in raw log prices will strengthen the earnings potential.
With the additional timber acquisitions, Pinnacle may be able to experience earnings from $600,000- $1,200,000 dollars per year to $2,000,000 -- $4,000,000 dollars per year. It is anticipated demand for value added wood products will remain strong in the foreseeable future.
Please visit the company's website www.pinnacledevinc.com for further information.
Certain statements contained herein are "forward looking" statements (as such term is defined in the Private Securities Reform Act of 1995). Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements.