New Pacific and Tagish Lake Complete Plan of Arrangement

New Pacific Metals Corp. ("New Pacific") (TSX VENTURE:NUX) and Tagish Lake Gold
Corp. ("Tagish Lake") (TSX VENTURE:TLG) are pleased to announce that they have
completed the previously announced court approved plan of arrangement (the
"Arrangement") under the Business Corporations Act (British Columbia) involving
Tagish Lake, its shareholders and New Pacific.


Tagish Lake received shareholder approval for the Arrangement at the meeting of
its shareholders held on December 15, 2010. The Supreme Court of British
Columbia granted a final order approving the Arrangement on December 16, 2010.
The common shares of Tagish Lake were halted on the TSX Venture Exchange on
December 20, 2010 and will be voluntarily delisted from the TSX Venture
Exchange. Tagish Lake will also apply to cease to be a reporting issuer under
applicable Canadian securities laws.


Pursuant to the Arrangement, New Pacific acquired all of the issued and
outstanding common shares of Tagish Lake ("Tagish Shares") which it did not
already hold in consideration for each Tagish Share, at the election of each
Tagish shareholder: (i) $0.10 in cash, (ii) 0.137 of a common share of New
Pacific, or (iii) a combination of $0.05 in cash and 0.0685 in common shares of
New Pacific. Prior to completion of the Arrangement, New Pacific held
114,101,236 Tagish Shares (representing approximately 79.2% of the outstanding
Tagish Shares). Pursuant to the Arrangement, New Pacific acquired the remaining
26,810,756 Tagish Shares and Tagish Lake is now a wholly-owned subsidiary of New
Pacific. Upon completion of the Arrangement, New Pacific now has 47,663,053
common shares outstanding.


New Pacific has deposited a total of $987,962.50 in cash and 2,319,565 common
shares of New Pacific with the depositary, Kingsdale Shareholder Services Inc.,
to satisfy the consideration payable to Tagish shareholders who surrendered
their Tagish Shares pursuant to the Arrangement. 


Tagish Lake shareholders who have questions or require more information with
respect to the Arrangement or the payment and receipt of the applicable
consideration should contact:




Kingsdale Shareholder Services Inc.
The Exchange Tower
130 King Street West, Suite 2950, P.O. Box 361
Toronto, Ontario M5X 1E2
Tel: [phone] / Fax: [phone]
Email: [e-mail]



This news release may contain forward-looking statements (within the meaning of
applicable securities laws) relating to the New Pacific. Forward-looking
statements are identified by words such as "believe", "anticipate", "expect",
"intend", "plan", "will", "may" and other similar expressions. This information
involves known and unknown risks, uncertainties and other factors that may cause
actual results or events to differ materially from those anticipated in such
forward-looking information. Forward-looking information in this news release
includes, without limitation, statements made in respect of the Arrangement, New
Pacific and Tagish Lake.


All forward-looking statements in this news release are qualified by these
cautionary statements. Forward-looking statements involve significant risks and
uncertainties, should not be read as guarantees of future performance or
results, should not be unduly relied upon and will not necessarily be accurate
indications of whether or not such results will be achieved. Forward-looking
information is based on various material factors or assumptions, which are based
on information currently available to the New Pacific. Although the
forward-looking statements contained in this news release are based upon what
management believes are reasonable assumptions, New Pacific cannot assure
readers that actual results will be consistent with these forward-looking
statements. 


The forward-looking statements contained in this news release are made as of the
date of this news release and should not be relied upon as representing the New
Pacific's views as of any date subsequent to the date of this news release. New
Pacific assumes no obligation to update or revise these forward-looking
statements to reflect new information, events, circumstances or otherwise,
except as required by applicable law.