Majestic Gold Corp.
TSX VENTURE : MJS

Majestic Gold Corp.

October 03, 2007 20:54 ET

Majestic Gold Outlines 2007 Program for Song Jiaguo

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 3, 2007) - Majestic Gold Corp. (TSX VENTURE:MJS) ("Majestic") is pleased to provide the following update on its 2007 exploration program at Song Jiaguo, one of its flagship projects, located on the Jiadong Peninsula of Shandong Province in eastern China. The exploration program is designed to provide trench and drill data to expand and upgrade the current resource at Song Jiaguo. The program will also provide information on the current mining and processing operations in an effort to further our intention of completing a pre-feasibility study as soon as practical.

Following last seasons drill program, Majestic commissioned an independent third-party, Wardrop Engineering Inc. ("Wardrop"), to upgrade the existing National Instrument 43-101 resource estimate on the property and will have a final report available for release in the coming weeks.

Continuing its uninterrupted development of the project, Majestic recently completed a trenching program to test the grades and widths of the gold mineralization on surface. Assays are expected soon and will be reported as they are received.

In addition to trenching, Majestic has commenced 5,000 metres of surface core drilling to further delineate the near surface gold mineralization at Song Jiaguo. The drill program will provide information on the grades and widths of the gold mineralization between the zones tested by the previous drill holes and the surface. This information is intended to allow for detailed deposit modeling and to confirm the continuity of grade and widths.

Majestic is planning to conduct a pilot mining/bulk sampling program to provide additional information on the metallurgical processes and recoveries of the gold. Majestic will bulk sample and process several thousand tonnes from existing open pits and the underground mining operations.

Once all of the data from this exploration program has been compiled, Majestic plans to commission a pre-feasibility study at Song Jiaguo, targeted for mid-2008.

Majestic would also like to report it has engaged Small Cap Invest Ltd. ("SCI"), a European public relations firm for small and medium-sized public companies, to provide the company with marketing and investor communications services.

Under the terms of the agreement, SCI will focus on shareholder communications, corporate development, and building Majestic Gold Corp. an active following of investment professionals throughout Europe. SCI will introduce Majestic to European investment clubs, investment advisers, institutional investors, analysts and private investors in exchange for compensation in the amount of 5,000 euros per month for services as well as 200,000 stock options in the company, subject to certain vesting conditions.

This agreement is subject to the approval and acceptance for filing by the TSX Venture Exchange.

Stock Option Grant

Additionally, subject to the 2007 stock option plan announced on May 3, 2007 and acceptance for filing by the TSX-V, the Company will grant up to an aggregate of 4,500,000 options to purchase common shares of the Company at a price of $0.30 to directors, senior officers and consultants of the Company and its subsidiaries. The options will be exercisable up to October 3, 2012. The Company will also re-price the existing 619,500 stock options to $0.30 at this time.

About Song Jiaguo

Song Jiaguo is one of 13 licenses and covers 4.11 of a total of 75.06 square kilometers that fall under an Agreement with Shandong Yantai Muping Gold Mine ("Muping Mining"). Under the terms of this Agreement, Majestic has the right to earn a 60% interest in a joint venture 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 is required to fund their pro-rata share of exploration or have their interest diluted down to 15%.

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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