Majestic Gold Corp.
TSX VENTURE : MJS

Majestic Gold Corp.

October 17, 2007 20:00 ET

Majestic Gold Increases Gold Resources by 285 Percent to 1.2 Million Ounces at Song Jiagou

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 17, 2007) - Majestic Gold Corp. (TSX VENTURE:MJS) ("Majestic" or "the Company") is pleased to announce it has received final results from the revised National Instrument (NI) 43-101 resource estimate on its Song Jiagou project, located in the Shandong Province of eastern China. The revised estimate increases the Song Jiagou resource by 285 percent to 1,174,460 ounces of gold from 413,900 ounces (Majestic news release April 26, 2006).

Included in the revised resource estimate are indicated 8,007,999 tonnes at 1.668 grams of gold per tonne (g/t) (429,497 ounces) and inferred 18,142,799 tonnes at 1.277 g/t (744,963 ounces), using a 0.5 gram per tonne cut-off based on an inverse distance squared interpolation. This brings the total gold resource within Majestic's joint venture projects to 2.7 million ounces, including its 1,519,137 ounce Sawayaerdun deposit in Xinjiang Province in western China (May 17, 2006, news release). A total of three statistical methods were used to calculate the resource and each produced similar results as shown in Table 1 below:



Table 1: Song Jiagou Revised Resource Estimate at 0.5 g/t Cut-Off

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Calculation Method Category Tonnes (t) Ounces (oz) Grade (g/t)
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Inverse Distance Indicated 8,007,999 429,497 1.668
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Squared Interpolation Inferred 18,142,799 744,963 1.277
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Kriged Method Indicated 8,780,199 412,754 1.462
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Inferred 18,186,999 736,252 1.259
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Nearest Neighbour Indicated 6,705,399 423,453 1.964
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Inferred 17,685,199 784,745 1.380
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"We are pleased to see the gold resources are consistent with our expectations for the property," says Rod Husband, P.Geo., President of Majestic Gold Corp. "In the coming months we intend to move towards production at our Song Jiagou project and this resource estimate reinforces our belief this deposit is a candidate for a bulk tonnage open pit operation."

The Company's current 2007 exploration program includes metallurgical studies and an underground and surface bulk sampling and processing program planned to commence in late 2007. These studies will provide information on mining, processing and economic parameters for a pre-feasibility study planned for the Song Jiagou project in mid-2008.

The program also includes trenching, drilling, and sampling of underground drifts and stopes from the existing underground mine at the property designed to provide additional information for a revised resource estimate that will be included in the pre-feasibility report.

The revised 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 was collected by Majestic in its 2004, 2005 and 2006 exploration programs in addition to data collected by joint venture partner Shandong Yantai Muping Gold Mine ("Muping Mining") and totaled 14,881 gold assays.

About Song Jiagou

Song Jiagou is one of 13 licenses and covers 4.11 of a total of 75.06 square kilometers that fall under an Agreement with Muping Mining on the Jiadong Peninsula of Shandong Province. Under the terms of this Agreement, Majestic has the right to earn a 60% interest in a joint company established to hold the title to the exploration licenses by spending approximately US$4.2 million over four years on exploration. Upon completion of the required exploration expenditures by Majestic, Muping Mining is required to fund their pro-rata share of exploration or have their interest diluted down to 15%.

About Majestic Gold Corp.

Majestic Gold Corp. is a gold exploration company focused on exploring and developing advanced stage projects in China. The Company has two gold projects located in prolific gold regions of China, Song Jiagou in eastern Shandong Province and Sawayaerdun in western Xinjiang Province. Together Majestic's projects host a total of 2.7 million ounces of gold to date and the 2007 exploration programs are well underway as the Company works to rapidly advance these projects toward production.

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

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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