Azteca Gold Corp.
TSX VENTURE : AZG

Azteca Gold Corp.

June 18, 2009 12:00 ET

Azteca Gold Corp.: Two Mile Project and Financing Update

SPOKANE, WASHINGTON--(Marketwire - June 18, 2009) - Matthew Russell, President of Azteca Gold Corp. (the "Company") (TSX VENTURE:AZG) wishes to update progress on exploration activities at the Two Mile Project in the Silver Valley of Idaho, as well as announce an increase in size of the present financing to $2.5 million total. All references to currency in this press release are in Canadian funds, except where noted otherwise.

Lower Mineralized Zone

Azteca is pleased to announce the intersection in hole DDH-006 of a second major mineralized zone beginning at approximately 10,850 FT and extending down to our current depth of 11,108 FT. "This lower zone has turned out to be of somewhat different makeup than we expected," said Mr. Russell. "We had anticipated a zone comprised primarily of galena mineralization with minor chalcopyrite fairly immediately below the 'upper tetrahedrite zone,' giving way to a bed of silver sulfides. Upon further study of the stockwork veining of galena and minor chalcopyrite that had led us to suspect the make-up of this next mineralized zone, we made a significant realization about the nature of the galena and chalcopyrite mineralization."

"It appears to us now that the galena with minor chalcopyrite mineralization found in the stockwork veining forms rims around a mineral that the Company believes is primarily bournonite," said Mr. Russell. "This bournonite mineralization appears to be accompanied by a silver sulfosalt mineral which may be polybasite. This mineralization has been visually increasing in concentration with depth. So rather than a bed of comprised primarily of galena, the nature of the stockwork veining changed to what appears to be this mix of bournonite and polybasite. This mineralization was disseminated with strong stockwork veining present at 10,850 FT, and has continued to present depth. Within the last 30 FT or so this mineralization has become intermittently massive." Bournonite is a lead-copper-antimony-sulfur mineral. Polybasite is a copper-silver-antimony-sulfur mineral.

"As in the upper zone, this mineralization is resident in or replacing fine-grained mica. It appears to us that the degree of massiveness of the sulfide mineralization is dependent upon the degree of replacement of the mica. It also appears to us that the mineral bournonite and the sulfosalt minerals may play a key role in the make-up of the beds above. They appear to be the pre-cursor materials from which mineral forms such as galena and chalcopyrite are made within the context of the local system. This observation dovetails with our view that these beds of sulfide mineralization are the source of the remobilized silver, lead, copper, and zinc ores of the Silver Valley," said Mr. Russell.

"The technical literature on the Silver Valley discusses not only the antimony based mineral types described above, but also arsenides. Some of the antimony sulfosalts have arsenic based analogs in which the mineralization may have partial to whole replacement of the antimony by arsenides. Based on this literature, we have reason to believe that the mineralization may transition to some extent from antimony based sulfosalts to arsenic based analogs with further depth," said Mr. Russell. "This is interesting because some of the gold found in the Silver Valley region was in arsenides, such as at the General Mine near Pinehurst, Idaho. Of course, this is just supposition at this point, and only time, technology and assays will tell what the full system may actually contain."

Azteca Gold wishes to emphasize that the intersection of significant mineralization as described above does not guarantee grade tenor as intercepted in hole DDH-005A.

Total Depth Extended

"Due to the visibly increasing strength of the mineralization encountered, we have decided to again extend the TD for hole DDH-006 to 11,500 FT. We expect that this lower zone may be similar in width to the upper mineralized zone," said Mr. Russell.

Exploration Plan

"The next immediate steps in our exploration and drilling plans will be to fully evaluate the drill core, sequence of beds and rock types, and other data. We anticipate drilling wedge-offs from the parent hole DDH-006 for the purpose of developing high grade mineral resource tonnage immediately adjacent to the hole. Also, with the discovery of this lower series of mineralized beds, we need to evaluate re-entering and deepening hole DDH-005A. This new zone, if it exists in the location of DDH-005A, would be stratigraphically deeper than the TD of 8,784 FT. A reasonable new target TD for DDH-005A at this time would be 9,500 FT. We also plan to initiate one or more new drill holes in other locations contained within our 22 square mile project boundary," said Mr. Russell. "These plans are being formulated now as we work through our assessment of the ample data collected through our exploration efforts on the Two Mile Project thus far."

Update on Current Financing

Azteca Gold has previously announced the undertaking of a non-brokered financing of $1.5 million. Subject to regulatory approval, the Company intends to increase the total financing size to $2.5 million on the same terms. Units are priced at $.40, and consist of one common share and one purchase warrant. Each warrant entitles the holder to purchase one common share for $.75 for a period of 2 years from the date of closing. Funds from this private placement will be used for drilling and assaying expenses at the Company's 50% owned Two Mile Project as well as for general corporate purposes.

The information contained in this news release has been reviewed and approved by Matthew Russell, President and CEO, the Company's Qualified Person as defined in National Instrument 43-101.

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: 179,919,564

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

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