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New Pacific Metals Corp.: Progress Report on the Tagish Lake Gold Project, Yukon and on Application for Listing on the TSX

New Pacific Metals Corp. (TSX VENTURE: NUX) (the "Company") is pleased to report progress on its exploration activities on the Tagish Lake Gold Project, Yukon, Canada over the last two months since the Company's news release dated April 20, 2011.

Camp expansion

Expansion of the camp from 25 to 50 persons has been completed with the installation of services, including power, water, and communications. Refurbishment of the 6,000 square feet geological office and core logging facility is also complete. With establishment of an excellent living and working environment, the Company is ready to embark on its aggressive exploration program as announced in the news release dated May 24, 2011.

Exploration and priority drilling targets

1.  Raca and Chieftain Hill Surface drilling sites: The Raca site is
    located along the northeast structural extension of the Skukum Creek
    mineralization zones (Rainbow zone) and the Chieftain-Hill site is
    located at the further northeast extension of the Raca. An access road
    to the Raca site, with further extension to Chieftain Hill, has been
    completed such that the drilling program will start. The Company
    carried out geological mapping and soil sample surveys at the Raca and
    Chieftain Hill sites in May and June, 2011.

    Surface drilling at Raca is to test the extension of known historical
    drilling where a drill hole, Raca 97-1, intercepted 3.6 metres grading
    2.66 g/t gold and 561 g/t silver, and to test at least four parallel
    mineralized structures that have been mapped out by the Company's
    geologists. A surface drill rig has arrived at the Raca Site on June
    25, 2011 and drilling commenced on June 28.

    At Chieftain Hill, soil gold anomalies outlined by a previous owner (all
    associated with anomalously high values of silver and base metals)
    extend over a corridor two kilometres long and approx. 500 metres wide
    along a northeast structure hosting rhyolite dikes, with peak values of
    up to 1,000 parts per billion gold (1 g/t). These soil gold anomalies
    have recently been confirmed by the Company's geologists soil sampling
    program which recorded soil gold anomalies up to 0.3 g/t gold associated
    with lead and zinc contents up to 0.4%.  Drilling tests of these
    anomalies has been planned for mid-August, 2011.

2.  Skukum Creek Underground and surface drilling: Underground drilling at
    Skukum Creek is planned to target depth extensions of four mineralized
    zones where historical drilling has only focused on limited sectors of
    the four mineralized zones, and only to about 300 metres from the
    surface. Surface drilling has also been planned for the Skukum Creek
    area to test up dip extension of previous underground drilling.

    De-icing at the Skukum Creek tunnel is completed and the tunnel is at
    very stable conditions: it will be prepared for underground in-fill and
    step-out drilling to start in one week. The first underground drill rig
    has arrived on-site already and once the drill crew arrives on July 15,
    2011, drilling will commence.

3.  Goddell Underground and Surface drilling: Drilling at the Goddell
    project is to test an area of 1,000 metres long and 600 metres down or
    up dip of the PD Zone and the Merged Zone, where previous drilling, such
    as Drill hole 97-41, intercepted 64.69 metres grading 5.75 g/t Au
    (please refer to January 13, 2011 press release).

    Underground drilling from the existing Goddell tunnel will substantially
    reduce the amount of drilling that would have been necessary from
    surface, and can be carried out year round: accordingly, the Company has
    placed emphasis on de-watering the tunnel to take advantage of the
    underground drilling strategy. However, the de-watering and
    rehabilitation of this tunnel has experienced some delay and difficulty
    as faults with widths of 2 to 3 metres have caused unstable ground
    conditions and require extensive steel framework support. The Company
    has successfully crossed the first fault and is currently underway to
    support the second fault zone. Once de-watering is successfully
    completed at the Goddell by the mid-August, a second underground rig
    will be brought to the site for drilling.

    As a contingency plan, the Company has repaired and advanced the old
    surface drill road and a second surface drill rig will arrive on site on
    July 6, 2011 to carry out some of the drilling that was initially
    planned for the tunnel.

4.  Staking: As at June 28, 2011, the Company expanded its land holding by
    completing staking in the surrounding area.

Photo slide information of the progress as set out above has been posted on the Company's website at http://www.newpacificmetals.com.

Application for listing on the TSX

The Company has applied for graduation to the TSX and is currently awaiting regulatory review of its initial application documents. Any graduation is subject to regulatory approval.

The Company's Unaudited Interim Consolidated Financial Statements and Management's Discussion and Analysis are available for review on our website at www.newpacificmetals.com and through SEDAR at www.sedar.com.

About New Pacific Metals Corp.

New Pacific Metals Corp. is engaged in the exploration and development of mineral resources in Canada. The Company's strategy is to focus on projects which it believes can be developed in a relatively short time frame into high-margin operations with reasonable development capital profiles. Its goal is to get a project into production with sufficient initial resources, but before the full resource potential of the property is defined, so that further exploration and potential development costs can be funded by cash flows generated from early operations.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.