Majestic Gold Corp.

Majestic Gold Corp.

January 02, 2008 20:43 ET

Majestic Gold Announces High Grade Sample With Metal Value of $20,500/Tonne(i) at Sawayaerdun

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 2, 2008) - Majestic Gold Corp. (TSX VENTURE:MJS) ("Majestic" or the "Company") is pleased to report results from its 2007 exploration program on the Sawayaerdun gold project in Xinjiang Province, western China. Included in the results from the program is a high-grade grab sample collected from an area known as Gargoyle Gulch on the north side of the license. A sample of thin massive sulfide (two centimetres to five centimeters thick) was collected from outcrop there containing 86.2 grams per tonne gold (2.77 ounces per tonne gold), 33,878 grams per tonne silver (1,089 ounces per tonne silver), and 29 percent copper for a total value of approximately $20,500 per tonne(i), as well as 25.2 percent antimony.

This zone was previously unrecognized and was discovered in 2006 by the Company's surface prospecting. "We are very encouraged by this new discovery at Sawayaerdun, the high grade grab sample demonstrates that it is possible to find a much higher grade resource on the project than previously thought," said John Zimmerman, Head of Exploration.

Majestic also completed a 648-metre, six-hole surface core drill program at Sawayaerdun thus far. Drilling tested the possible continuation of Zone IV to the southeast as well as one hole each into Zone I-I, Zone V, and Zone XVI. Hole SWD07-56 tested Zone IV approximately 190 metres south of the nearest intercept and intersected 21 metres of 1.01 grams per tonne gold from 47 to 68 metres. Hole SWD07-55 was drilled on Zone V, an untested shear zone just southwest of Zone IV, and intersected 18 metres of 1.71 grams per tonne gold from 59 to 77 metres. The other four drill holes did not return significant assay results.

In addition, Majestic conducted sampling along paths cut for drill access. These returned significant anomalies around the southern extension of Zone IV and near Zone I. Samples were collected from outcrop and subcrop and contained values individual assays of up to 3.1 grams per tonne gold from three meters of material.

"These are highly encouraging results for the project," said Mr. Zimmerman. "The 2006 and 2007 programs have enabled us to extend Zone IV approximately 700 metres along strike to the southeast of the area used to define the current gold resource, and to discover an entirely new shear zone, Zone V, which has shown significant results already."

The Sawayaerdun project currently hosts an indicated 17,967,204 tonnes grading 1.16 grams per tonne (667,196 ounces) and inferred resource 24,377,485 tonnes grading 1.09 grams per tonne (851,941 ounces) using 0.5 gram per tonne cut-off, contained in Zone IV, one of 22 mineralized shear zones that have been identified on the property.

This resource estimate was produced in accordance with National Instrument 43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum standards on mineral resources and mineral reserves definitions and guidelines by an independent third party, Wardrop Engineering Inc., Greg Z. Mosher, P. Geo. The data used in this study were collected by Majestic Gold during its 2004 and 2005 exploration programs that included 8,939 metres of drilling in 46 holes and 20 trenches along a two kilometre section of Zone IV.

All core from the 2007 drill program is logged, split, stored and shipped under the supervision of John Doucette, Ph D. (Geol). All samples were stored in Majestic's local office and packaged and freighted directly, to SGS Tianjin Geochem Lab, China, for analysis. The samples were assayed using a standard six-element ICP package and gold analysis was conducted by standard fire assay.

This news release was reviewed by Qualified Persons as defined by National Instrument 43-101, including Rod Husband, P. Geo., who has prepared the technical information contained herein.

(i)Metal value is not indicative of economic feasibility or of the grade of any deposit or mine. Results from historic samples and assays are not 43-101 compliant and readers are advised to use caution. Future results may differ materially from historic results.

Metal Price Assumptions (November 6, 2007)

Gold Silver Copper
(US$/oz) (US$/oz) (US$/lb.)
Price used 800.00 15.00 3.30

On Behalf of the Board of Directors

Rod Husband, P. Geo., Director, President and CEO

This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

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

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