New Pacific Metals Corp. Announces Results for the Second Quarter Ended December 31, 2010

New Pacific Metals Corp. (TSX VENTURE:NUX) (the "Company") announces its
unaudited consolidated financial results for the second quarter ended December
31, 2010. All references to dollars or monies are expressed in Canadian Dollars.


SECOND QUARTER HIGHLIGHTS

The Company:



--  successfully acquired 100% of issued and outstanding shares of Tagish
    Lake Gold Corp. ("TLG"), a Canadian publicly traded company involved in
    the exploration and development of gold-silver mineral deposits in Yukon
    Territory, Canada. TLG's main assets consist of three identified gold
    and gold-silver mineral deposits: Skukum Creek, Goddell Gully, and Mount
    Skukum; and 

--  completed a 18 million share private placement for gross proceeds of
    $24.3 million, which will be used to finance continuing exploration and
    development activities of the Company. 



During the quarter, loss from continuing operations increased by $593,967 to
$945,479, compared to the three months ended December 31, 2009 ("Q2 2010") of
$351,512, mainly due to the following:




--  interest and finance charge increased by $88,339 to $88,679 (Q2 2010 -
    $340) due to the interest and termination fees paid on a $2.1 million
    loan from Silvercorp Metals Inc. ("SVM"); 

--  legal and professional fees increased by $158,960 to $164,536 (Q2 2010 -
    $5,576). The increase was primarily attributed to professional fees
    incurred in connection with TLG's CCAA proceeding; 

--  salaries and benefits expenses increased by $126,400 to $207,953 (Q2
    2010 - $81,553). In connection with the acquisition of TLG, the Company
    assembled a core team of professionals to carry out the exploration and
    development of the TLG property; and 

--  stock-based compensation increased by $204,353 to $332,784 (Q2 2010 -
    $128,431). With the expansion of the Company's operations, the Company
    granted more stock options to newly appointed directors and officers.
    The increase was also caused by the immediate recognition of stock-based
    compensation expense of $141,715 related to the previously unvested
    portion of cancelled options and $195,528 related to previously unvested
    portion of amended options. 



Loss from discontinued operations, Yunnan Jin Chang Jiang Mining Co. Ltd and
Sichuan Huaxi Mining Co. Ltd, were $210,242 (Q2 2010 - $87,939).


As of December 31, 2010, the Company had a working capital position of
$20,716,257 (June 30, 2010 - $8,964,681).  Cash and cash equivalents plus short
term investments amounted to $24,451,086 (June 30, 2010 - $9,237,514) and are
unencumbered. 


OUTLOOK

Beginning early in 2011, the Company plans to initiate an aggressive program to
move the newly acquired TLG Property towards timely gold and silver production.
A highly experienced team with expertise in the areas of gold exploration,
mining, and metallurgy, as well as community development and the environment, is
being assembled to assist in bringing the Company's existing gold and silver
resources to development and discovering new ones. High priority will be given
to compiling, reviewing, and synthesizing the vast amount of drill core and
surface exploration results amassed from three decades of exploration and
underground development. This work will underpin a major surface and underground
drilling campaign to explore the priority targets generated during the data
review. The Company also intends to file for additional permits to support
on-going exploration and development on the TLG Property, and will initiate a
major program directed to permitting a mine and mill, including First Nations
consultations, community, government and stakeholder engagement, and a wide
variety of hydrological, wildlife socio-economic and other studies necessary to
support a mining application.


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 from the cash flows
generated from early operations.