Azteca Gold Corp.
TSX VENTURE : AZG

Azteca Gold Corp.

November 09, 2007 09:59 ET

Azteca Gold Corp.: Mexican Santa Matilde Acquisition Closes and Drilling Targeted to Begin Q1 2008

SPOKANE, WASHINGTON--(Marketwire - Nov. 9, 2007) - Matthew Russell, President of Azteca Gold Corp. (TSX VENTURE:AZG) (the "Company") announces that the Company has, through its wholly owned Mexican subsidiary, entered into an arms-length agreement (the "Agreement") of transfer of ownership of the Santa Matilde Mineral Concessions (the "Matilde Concessions") located on and surrounding the town of Santa Matilde, Chihuahua about 20 kilometers to the southwest of the regional mining town of Temoris, Chihuahua. The Agreement remains subject to the approval of the TSX Venture Exchange, regulatory approval, and formal registration of the Agreement by Mexican authorities. The Company's flagship exploration project Guerra al Tirano is located nearby, 9 kilometers to the northwest of Temoris. The Matilde Concessions stretch approximately 7.5 kilometers north to south and cover approximately 2,677 hectares, and contain several historic workings.

This acquisition would see the Company make the following option payments:

(a) US$ 250,000 was paid at the signing of the Memorandum of Understanding

(b) US$ 200,000 on the signing of the formal Option to Purchase

(c) US$ 300,00 no later than September 30, 2007

(d) US$ 750,000 no later than March 7, 2008

(e) US$ 1,000,000 no later than June 30, 2008

(f) US$ 2,000,000 no later than December 30, 2008

(g) US$ 2,500,000 to be paid no later than June 30, 2009

(h) US$ 3,000,000 to be paid no later than December 30, 2009

In addition the Company will issue 1,500,000 shares now, which are subject to a 4 month hold period, and a further 3,500,000 shares upon successful completion of an exploration, development and exploitation agreement with the local ejido having jurisdiction over the Matilde Concessions. The Vendors will receive a production royalty ranging from US$10.00 to US$ 25.00 per ounce, depending on the then current price of gold. The board will review the project prior to the June 30, 2008 payment being made, or at such earlier time as management may request.

The Company has received an independent report compliant with NI 43-101 dated June 20, 2007 on the property from Edward Brennan of Brisbane, Australia, which is available on Sedar.

Driller selection is underway for diamond core and reverse circulation drilling ("RC") for the Santa Matilde Project. The Company is targeting Q1 2008 to begin drilling operations which are contingent on acceptance of an exploration agreement with the local ejido. For reference, an explanation of the ejido agreement achieved for the Company's flagship exploration project, Guerra al Tirano, is given in the Company's press release of March 5, 2007.

WARNING: the Company relies upon litigation protection for "forward looking" statements. The information in this release may contain forward-looking information under applicable securities laws. This forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those implied by the forward-looking information. Factors that may cause actual results to vary material include, but are not limited to, inaccurate assumptions concerning the exploration for and development of mineral deposits, currency fluctuations, unanticipated operational or technical difficulties, changes in laws or regulations, the risks of obtaining necessary licenses and permits, changes in general economic conditions or conditions in the financial markets and the inability to raise additional financing. Readers are cautioned not to place undue reliance on this forward-looking information. The Company does not assume the obligation to revise or update this forward-looking information after the date of this release or to revise such information to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws.

Shares issued: 98,574,802

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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