Linear Gold Corp.

Linear Gold Corp.

January 22, 2008 11:49 ET

Linear Gold Outlines Growth Plans for 2008

HALIFAX, NOVA SCOTIA--(Marketwire - Jan. 22, 2008) - Linear Gold Corp. (TSX:LRR) enters 2008 with a solid balance sheet, strategic joint venture interests providing for $18 million of carried expenditures on the Company's properties in Mexico and the Dominican Republic, and aggressive plans for the Company's strategic entrance into Brazil, with agreements in place to acquire up to a 100% interest in four promising gold properties.

Highlights of 2007's accomplishments:

- Raised CDN$25 million in equity financing;

- Secured a strategic joint venture agreement with Kinross Gold Corporation to aggressively advance Linear's Ixhuatan Gold Project in Mexico;

- Completed a fully funded joint venture agreement with Everton Resources Inc. to advance all three of Linear's gold projects in the Dominican Republic;

- Acquired four gold properties in the Alta Floresta gold province of northern Mato Grosso state, Brazil as part of the Company's strategic entrance into Brazil;

- Hired industry veteran Howard Bird as Linear's Vice President of Exploration.

Linear's accomplishments in 2007 make way for the Company to embark on an aggressive 2008 plan, which includes a strategic operational focus on Brazil. "With our partners Kinross Gold and Everton Resources advancing exploration programs in Mexico and the Dominican Republic through fully funded joint ventures, we can focus our resources in Brazil, with exploration programs now underway" said Wade Dawe, President and CEO of Linear Gold.

Highlights of Linear's 2008 Strategy:

- Systematically explore each of Linear's properties in Brazil with a goal of rapid advancement to the drilling phase;

- Commence drilling on the El Filao property during February 2008, followed by the initiation of drilling at the Apiacas property;

- Continue to build Linear's exploration team and expertise on the ground in Brazil;

- Carry out rigorous and thorough due diligence in the pursuit of new acquisition opportunities on a select basis;

- Build and maintain a pipeline of quality early stage and advanced gold properties while disposing of, on a timely basis, those properties that do not meet our criteria;

- Collaborate with Linear's joint venture partners, Kinross Gold and Everton Resources, as they advance their respective exploration programs on Linear's properties in Mexico and the Dominican Republic;

- Maintain a strong balance sheet and attractive corporate and share structure to maximize leverage to exploration success.

Exploration Plans:

All four of Linear's recently acquired Brazilian gold projects host extensive artisan gold workings, with gold mineralization at or near surface. Pictures of the properties and workings may be viewed on Linear's website at

To date, these properties have not been subject to systematic exploration using modern scientific methods. The agreements for these properties mark the Company's entry into a large prolific gold-bearing region, which Linear believes has significant potential for large-scale bulk-tonnage and high-grade vein gold deposits.

The El Filao property, one of Linear's four Brazilian properties, is host to a high-grade gold vein system. Trenching along the vein indicates values of 11.8 grams per tonne gold over 80 metres of strike, with the drilling of six holes by a Brazilian operator in the mid-1990s reportedly indicating values from 9.6 grams per tonne gold up to 104 grams per tonne gold over widths of 0.7 to 1.7 metres in drill core, in addition to impressive silver values. Drilling is scheduled to start at the El Filao project in February 2008.

Soil and rock sampling is underway at the Trairao, Apiacas and Serrinha properties. Drilling will occur at the Apiacas project during the second quarter of this calendar year, followed by anticipated drill programs at the Trairao and Serrinha projects. In addition to these properties, Linear is continuing the process of reviewing a number of other gold-focused acquisition opportunities in Brazil.

Joint Ventures:

Kinross Gold is continuing to work at the Ixhuatan property and is committed to completing a US$15 million exploration program at the Ixhuatan project over a 24-month period ending in October 2009. To ultimately acquire a 70% interest in the Ixhuatan project, Kinross Gold will be required to pay Linear a total of US$100 million plus production decision fees of up to US$15 million.

In the Dominican Republic, Linear owns three properties located near the world class Pueblo Viejo gold deposit, with a reported reserve in excess of 18 million ounces. Linear has granted Everton Resources options to earn an initial 50% interest in the Ampliacion Pueblo Viejo concession and the Loma Hueca concession by making cash payments totaling $0.8 million, incurring total expenditures of $US3.1 million and issuing to Linear 1.4 million Everton Resources common shares over a three year period. Everton Resources can increase its interest in either of the concessions, or in the Loma El Mate concession, currently held 50-50 between Linear and Everton Resources, to 65% by incurring all additional expenditures to the completion of a bankable feasibility study, making additional cash payments to Linear and issuing to Linear additional Everton Resources common shares.

Management Expertise:

Linear Gold Corp. is led by a capable and skilled management team with extensive corporate and technical experience. Howard Bird recently joined the Linear team as the Company's Vice President of Exploration and will lead the Company's exploration efforts going forward. Mr. Bird is a veteran of the mineral sector with international expertise in all aspects of growing a mining company. He has extensive experience as a geologist in a broad range of commodities including gold, base metals, platinum and diamonds. Phil Pyle has been a senior executive with Linear Gold since 2003 and serves as Linear's Vice President of Business and Corporate Development. With 30 years of industry experience in numerous countries worldwide, Mr. Pyle has been instrumental in planning and implementing Linear's strategy in Brazil and will continue to actively seek strategic acquisitions and opportunities.

"I am proud of the accomplishments of our team during 2007 and am excited and very enthusiastic about our plan and the opportunities before us this year. With gold bullion recently hitting all time highs, the Linear Gold team is focused and committed to building shareholder value through select acquisitions and exploration success." added Mr. Dawe.

This press release has been prepared under the supervision of Mr. Philip Pyle, Certified Professional Geologist and Linear's Vice President of Business and Corporate Development, who serves as the qualified person for these projects under National Instrument 43-101.

Linear Gold Corp. is actively exploring for gold and base metal deposits in Mexico and Brazil, and also through joint ventures with Kinross Gold in Mexico and Everton Resources in the Dominican Republic.

Wade K. Dawe, President & CEO

This news release contains "forward-looking statements". Such forward-looking statements, especially those that address resource quantities, grades, and contained metals, are generally made on the basis of estimation and extrapolation from a limited number of drill holes and metallurgical studies. Where the company expresses or implies an expectation as to future events or results, such expectation or belief is expressed in good faith and is believed to have a reasonable basis for the statement. However, forward-looking statements are subject to risks and uncertainties which could cause actual results to differ significantly from future results expressed or implied. These risks include, but are not limited to, metal price volatility, political and operational risks in the countries where we operate, and a degree of uncertainty in connection with evaluating a deposit until the deposit has been extensively drilled on closely spaced centres.

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