MDN Inc.
TSX : MDN

MDN Inc.

July 20, 2009 12:46 ET

MDN Inc.: Tulawaka Mine Produces 24,561 Ounces of Gold During the Second Quarter of 2009

MONTREAL, QUEBEC--(Marketwire - July 20, 2009) - MDN Inc. ("MDN")(TSX:MDN) is pleased to announce that the Tulawaka Gold Mine in Tanzania produced 24,561 ounces of gold during the second quarter ended June 30, 2009. Tulawaka gold production now amounts to 699,421 ounces since the beginning of operations in March 2005.

For the second quarter, 22,536 ounces of gold were sold into the spot market at an average price of US$922 for total sales of US$20.8M. Since the beginning of operations in March 2005, a total of 689,495 ounces of gold was sold.

For the second quarter, a total of 28,898 tonnes were mined from the underground mine at an average mine grade of 18.5 g/t gold whereas the plant facilities processed 108,456 tonnes of ore at an average grade of 7.5 g/t gold and at a gold recovery rate of 94.5%. The difference in tonnage comes from the stockpile at the plant.

Total cash costs averaged US$363 to produce an ounce of gold during the second quarter of 2009. The ROM (Run of Mine) stockpiles at quarter end were 337,774 tonnes at an average grade of 2.73 g/t gold, representing approximately 11 months ore supply for the process plant, assuming the current throughput of approximately 30,000 tonnes processed per month due to the hardness of the rock on the stockpiles.

2009 year to date production results

For the first six months of the year 2009, a total of 63,809 tonnes were mined from the underground mine at an average mine grade of 14.6 g/t gold whereas the plant facilities processed 210,430 tonnes of ore at an average grade of 7.1 g/t gold and at an average recovery rate of 93.9%, for a production of 45,054 ounces of gold. The difference in tonnage comes from the stockpile at the plant.

For the six months period, a total of 43,417 ounces of gold were sold at the spot market at an average price of US$914 for total incomes of US$39.7M. Total cash costs averaged US$388 to produce an ounce of gold during this period.

Paul-A. Girard, President and CEO of MDN stated: "The production level and mining operations of the underground mine have improved, mainly due to a better understanding of the ore body. This has allowed access to higher grade zones and we remain optimistic that we will achieve the year's mining plan."

The Tulawaka project is a joint-venture between MDN (30%) and Pangea Goldfields Inc. (70%), a wholly owned indirect subsidiary of Barrick Gold Corporation and project operator through its Tanzanian subsidiary Pangea Minerals Ltd. The information disclosed on the Tulawaka Gold Mine is based on information provided by the Operator.

MDN is a mining exploration and development company having adequate financial resources to develop its very promising projects in Quebec and in Tanzania and to search for new business opportunities that can raise shareholder value. In addition to its 30% participation in the Tulawaka Gold Mine, MDN is the operator and owner of a majority interest in 42 mineral licenses, mainly adjacent to the Tulawaka gold mine in Tanzania, and owns a 28.75% interest in a property with a NI 43-101 niobium and tantalum resource located in the Lac St-Jean area of Quebec.

Forward looking statements

All statements in this release, other than statements of historical fact, that address events or developments that the Company expects to occur, are forward looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements are discussed in greater detail in the Company's most recent Annual Information Form filed on SEDAR, which also provides additional general assumptions in connection with these statements. Investors and others who base themselves on the Company's forward-looking statements should carefully consider the factors mentioned in the Annual Information Form as well as the uncertainties they represent and the risk they entail. The Company believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this press release should not be unduly relied upon. These statements speak only as of the date of this press release.

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