LETTER OF INTENT (LOI)

[SPARK]

PMU...from - 3/15/05 12:49 PM Pacific Rim Announces 2005 Third Quarter Results

On January 27, the Company announced the sale of its wholly owned subsidiary DMC Cayman Inc. to a private arms-length investor. DMC Cayman Inc. is the indirect owner of the Andacollo mine. Under the terms of the agreement, the purchaser will make staged payments totaling US $5 million cash under the following schedule: a non-refundable deposit of US $100,000 upon signing of the LOI (held in trust until closing); US $900,000 upon signing of a final agreement, to be escrowed until closing, expected within 30 days of signing of a final agreement; US $1 million on June 1, 2005; US $1 million 18 months after closing; US $1 million 30 months after closing; and, $1 million 36 months after closing.
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 27, 2005) - Pacific Rim Mining Corp. ("Pacific Rim") (TSX:PMU)(AMEX:PMU) has signed a letter of intent ("LOI") to sell its wholly owned subsidiary DMC Cayman Inc. to a private arms-length investor subject to regulatory approval and completion of a formal final agreement within 15 days. The agreement will close within a further 30 days. DMC Cayman Inc.'s primary holding is the Andacollo gold mine in Chile, which was officially shut down in December 2000 by Pacific Rim's predecessor company Dayton Mining Corporation.

Under the terms of the agreement, the purchaser will make staged payments totalling US $5 million cash under the following schedule: a non-refundable earnest deposit of US $100,000 upon signing of the LOI (in transit); US $900,000 upon signing of a final agreement, to be escrowed until closing, expected within 30 days of signing of a final agreement; US $1 million on June 1, 2005; US $1 million 18 months after closing; US $1 million 30 months after closing; and, $1 million 36 months after closing.

"We are thrilled to be able to monetize the Andacollo asset at this time," states Tom Shrake, CEO. "We will use these funds to expedite our definition drilling program and resource estimate at the South Minita gold zone by adding a third drill rig to the low cost El Dorado project. The newly discovered South Minita gold zone has the potential to build upon our recently announced pre-feasibility study results through the definition of new gold ounces."

About Pacific Rim Mining Corp.

Pacific Rim is a revenue-generating gold exploration company with operational and exploration assets in North, Central and South America. Pacific Rim utilizes the cash flow from its 49% interest in the Denton-Rawhide gold mine in Nevada to explore, define and advance its projects, including the flagship El Dorado gold project in El Salvador. Pacific Rim's goal is to become a highly profitable, growth-oriented, intermediate-level gold producer that is environmentally and socially responsible.