Business Update

PAN PACIFIC AGGREGATES PLC

Business Update

Further to speculation relating to an inaccurate article previously reported in the media and volatility in the share price over the last few days, Pan Pacific Aggregates plc (the "Company"), the British Columbia based aggregates business, confirms that it is not currently in discussions in relation to an acquisition but will continue to look at opportunities as they arise.

The Company also takes this opportunity to announce that it is in discussions with William Voaden in regard to him stepping down from the plc Board for personal reasons. It is proposed that, going forward, Mr Voaden will provide consultancy services to the Company's subsidiaries with a specific focus on operations in Canada. The Company is also reviewing the ongoing constitution of the Board and will update shareholders in the near future.

In addition, the Board are aware of the wide spread in the share price and the significant number of shares in issue and is therefore considering the implementation of a share consolidation of 1 new ordinary share for every 100 existing ordinary shares in issue.

Furthermore, the Board is in discussions relating to a financing facility with a third party financial institution to provide additional facilities for the Company.

The Company expects to make a further announcement in relation to the above and write to shareholders outlining these proposals in the near future.

For further information please see the Company's web site, www.panagg.com or contact: