Paget Minerals Options San Ricardo Gold-Silver Project, Sonora, Mexico

Paget Minerals Corp. (TSX VENTURE:PGS) ("Paget" or the "Company") announced
today that it has entered into an option agreement with Sundance Minerals Ltd.
("Sundance") whereby Paget can earn up to a 60% interest in the San Ricardo
Gold-Silver Project located within the prolific porphyry and epithermal
gold-silver-copper belt of northern Sonora State, Mexico.


David F. Volkert, President and CEO of Paget, stated, "Following on the heels of
the Ball Creek agreement with Blue Gold Mining in British Columbia (see press
release dated 26 June 2012), the agreement on the San Ricardo Project
underscores Paget's strategy of geographic diversification through partners with
established teams. Northern Sonora provides year-round work complementing our BC
drilling and reconnaissance programs."


THE PROJECT 

The Project area covers a total of 38,100 hectares in northern Sonora State. The
region hosts large Cu-Mo porphyry deposits, including Cananea and Creston, among
others, and a number of epithermal gold-silver deposits, including the San
Francisco (Timmins Gold), Mercedes (Yamana Gold) and Santa Elena (SilverCrest)
Mines. Excellent road access and infrastructure provide for year-round
exploration. 


To view the regional location map, please visit the following link:
http://www.pagetminerals.com/i/maps/SR-Location-Map.jpg.


Preliminary reconnaissance within the Property has identified multiple
high-grade gold targets as well as areas with bulk tonnage potential. Current
work has focused on the Santa Cruz Target (four known sub-parallel vein systems)
around the inactive San Ricardo Mine, an area with scores of historic mine
workings and small scale leach production. 


Gold mineralization on the Santa Cruz Target occurs as granite-hosted,
stockwork, shears and veins with both high-grade underground and lower grade
open-pit potential. Paget and Sundance have completed detailed mapping as well
as collecting 730 samples, including underground channel, surface rock chip and
trench channel samples. Underground sampling along 300m of the minimum two
kilometer-long Santa Cruz vein show results from 1.0m @ 0.29g/t to 2.0m @
46.4g/t gold. Fifty-one of the 83 saw cut-channels in mine workings assayed more
than 4g/t Au and average 12.2g/t Au over 2.5 meters. 


The weighted gold-grade averages (all true widths - oxide mineralization) of
sampling on 8 different levels along 15-54m sections of the vein are: 1.4m @
1.9g/t, 2.4m @ 5.3g/t, 2.5m @ 5.5g/t, 2.6m @ 7.1g/t, 2.0m @ 10.8g/t, 2.0m @
11.2g/t, 2.4m @ 12.7g/t and 2.9m @ 22.9g/t. Mineralization remains open along
strike and at depth. 


The Santa Cruz, Intermedia and Mina Antigua vein structures intersect forming an
exposed150m x 200m triangular area of mineralized hematite stockwork and
fracturing. Trench and surface rock-chip sampling results within this
mineralized area suggests open-pit potential with all samples averaging 0.72g/t
gold. The topography within the stockwork trench area and the immediate
underground workings is favorable for possible inclusion of high-grade veins in
a pit outline. Significantly, silver values range from anomalous to 452g/t.


Surface sampling results from elsewhere within the large San Ricardo claim block
adjacent to current and historic gold placer workings show values to 4.5g/t gold
from both vein outcrop and float material.


To view maps of the project and a complete list of surface and underground
sample results, please visit the following link:
http://www.pagetminerals.com/s/Mexico.asp?ReportID=544397&_Type=Mexico-Sundance-Minerals-Ltd.&_Title=Maps-Figures.


TERMS OF THE AGREEMENT

Paget has an exclusive right to earn an initial 51% interest (the "First
Option") in the San Ricardo Project by incurring US$500,000 in exploration
expenditures by the first anniversary of the closing date and an additional
US$5,000,000 by the fourth anniversary of the closing date and by reimbursing
Sundance for 51% of the US$250,000 in payments made or to be made to the
underlying owner (the "Underlying Payments"). Paget also retains an exclusive
right to earn an additional 9% interest (the "Second Option") by funding a
pre-feasibility study in the three-year period following the 51% earn-in date.
In order to maintain the Second Option in good standing, Paget must incur
US$1,000,000 in exploration expenditures by each of the first, second and third
anniversaries of the 51% earn-in date and must reimburse Sundance for an
additional 9% of the Underlying Payments.


Once Paget has earned a 60% interest in the San Ricardo Project or Paget does
not exercise the Second Option, Paget and Sundance shall elect either to
participate in further exploration programs on a prorata basis or have their
interest diluted. If the interest of either Paget or Sundance is diluted below
10%, the diluted party shall be entitled to a 2% Net Smelter Return royalty
("NSR"). Paget will have the right to purchase a 1.5% NSR for US$2 million.


Sundance will be the operator during the first 12 months employing its
established technical and logistical support team in Mexico. The operator in the
ensuing years will be determined by Paget. Sundance and Paget plan to commence
drilling of the Santa Cruz target during the last quarter of 2012. 


Paget also has an exclusive right (when it exercises the First Option and Second
Option) to earn an initial 51% interest (the "First Option") and an additional
9% interest (the "Second Option") in Sundance's option (the "Mercator Property
Option") to acquire a 700-hectare portion of a contiguous claim (the "Mercator
Property") held by a subsidiary of Mercator Minerals Ltd. Under the Mercator
Property Option, Sundance can earn a 51% interest in the Mercator Property by
making an initial payment to the Mercator subsdiary of US$25,000 and incurring
work expenditures of US$250,000 over a three-year period. Sundance may earn an
additional 19% interest, for a total of 70%, by making a cash payment to the
Mercator subsidiary of US$150,000 and incurring work expenditures of
US$2,000,000 over the two-year period following the 51% earn-in date. In order
for Paget to earn an interest in the Mercator property, it must fund these
costs.


Once Sundance has earned a 70% interest in the Mercator Property or Sundance
does not exercise the option to earn the additional 19% interest, Sundance and
the Mercator subsidiary shall elect either to participate in further exploration
programs on a prorata basis or have their interest diluted. If the interest of
either Sundance or the Mercator subidiary is diluted below 9%, the diluted party
shall be entitled to a 2% Net Smelter Return royalty ("NSR"). Sundance will have
the right to purchase a 1% NSR for US$1.5 million.


About Paget Minerals Corp. 

Paget Minerals Corporation is a publicly traded resource company focused on
mineral exploration and the advancement of the company's priority Ball Creek
Project in British Columbia. The company hosts a 52,442-hectare, contiguous
mineral tenure package in the Golden Triangle - Iskut Mineral District located
just 8km west of Highway 37 and only 36km northwest of the new Northwest
Transmission Line Substation at Bob Quinn and neighbors three major mine
development projects in the Golden Triangle -- Galore Creek, Schaft Creek and
Red Chris. In 2012, Paget will focus its BC exploration program on the Ball
Creek Project, as well as advancing its exploration in Mexico. Paget also
maintains its equity position in Trident Gold Corp. exploring for gold in
Colombia. David Volkert, President and CEO, serves as the Qualified Person under
the definitions of NI 43-101. 


On Behalf of the Board of Paget Minerals Corp.,

David F. Volkert, President & CEO