Midex Gold Corp.
OTC Bulletin Board : MXGD

October 05, 2009 16:30 ET

Midex Gold Announces Letter of Intent to Purchase 100% of the Tanzanian Golden Hills Property

DAR ES SALAAM, TANZANIA--(Marketwire - Oct. 5, 2009) - Midex Gold Corp. (OTCBB:MXGD) (www.midexgold.com), management announced today that, effective September 22, 2009, the Company entered into a Letter of Intent with a private Tanzanian Company to purchase 100% of the Golden Hills gold property. The property consists of one claim encompassing 77.29 square kilometres and is located approximately 250 kilometres southwest of the city of Dodoma in Tanzania.

Morgan Magella, president of Midex Gold stated, "We are excited about signing this Letter of Intent to purchase the Golden Hills gold property. We believe this property has considerable potential because the geological structure of the Greenstone Belt is similar to the gold camps of Hemlo in the Wawa Belt, and the Kirkland Lake Pontiac Belt in the Superior Craton of Canada. There has been significant exploration done on this property, if the existing data proves up the Golden Hills Property will definitely be a property of merit"

Under the terms of the Agreement, Midex has the right to enter, sample, drill and explore for minerals on the Golden Hills property as defined by the Prospecting License granted by the Government of Tanzania under the Mining Act of 1998. To earn 100% interest in the property, Midex's obligation is to commit US$2,000,000 in exploration expenditures prior to the second anniversary of the Agreement.

Tanzania has become one of the fastest-emerging gold producers in Africa. Two gold mining majors that are firmly entrenched in Tanzania are Barrick and AngloGold Ashanti with gold mines at Golden Ridge, Geita, Bulyanhulu, Ridge, Kahama/Chocolate Ridge and Tulawaka. Gold and diamond production has been the mainstay of mining production for the country. The nation is the third-largest gold producer in Africa behind South Africa and Ghana, and ranks among the top producers of diamonds in the world. Tanzania's gold mining industry is likely to grow in the near future, with increased production reaching a value of US$0.50 billion by 2013, contributing around 1.5% to the nation's GDP.

Midex Gold is positioned to take advantage of Tanzania's rich mineral resources by developing a select portfolio of near-term gold and diamond production projects. With the company's network of strategic relationships with senior mining professionals and government officials in Tanzania, it is poised to identify key mining concession targets that are ready to be developed.

This news release may contain forward-looking statements based on assumptions and judgments of management regarding future events or results that may prove to be inaccurate as a result of exploration and other risk factors beyond its control and actual results may differ materially from the expected results. The Company does not expect to update forward-looking statements continually as conditions change. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's quarterly filings with the SEC and other periodic filings.

No Exchange has either approved or disapproved of the information contained herein.

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