Azteca Gold Corp.
TSX VENTURE : AZG

Azteca Gold Corp.

June 29, 2009 16:21 ET

Azteca Gold Corp.: Close of Financing and Two Mile Project Update

SPOKANE, WASHINGTON--(Marketwire - June 29, 2009) - Matthew Russell, President of Azteca Gold Corp. (the "Company") (TSX VENTURE:AZG) wishes to announce the final closing of its current financing, as well as update progress on exploration activities at the Two Mile Project in the Silver Valley of Idaho. All references to currency in this press release are in Canadian funds, except where noted otherwise.

Closing of Current Financing

Azteca Gold has closed its present financing prior to the first release of preliminary assays for material mineralization below 9900 FT in hole DDH-006. Although it is a prudent policy to verify results with check assays before releasing assay results, because of the length of time the check assay labs are taking, these preliminary results in the next two days prior to verification, with verification results to be released when available.

A total of $836,700 or 2,091,750 units were sold, at a price of $.40 per unit, which consists of one common share and one purchase warrant. Each warrant entitles the holder to purchase one common share for $.75 for a period of 2 years from the date of closing. Insiders were restricted from participating in this financing. Funds from this private placement will be used for drilling and assaying expenses at the Company's 50% owned Two Mile Project as well as for general corporate purposes. Securities issued on closing will be restricted from trading until October 30, 2009.

Exploration Update and Release of Assays

DDH-006 is currently at a depth of 11,173 FT. "We believe we are at least 100 FT into our deep target, that being a calcic carbonate unit located deep in the Pritchard," said Matt Russell. Pictures of the core have been posted to the Gallery on the website located at www.azteca-au.com.

"We received preliminary assays over the weekend, and these may substantiate the extent of the calcic carbonates encountered. We are evaluating these assays now, and will release the results in the next day or two. Our goal was to locate the primary source of the gangue minerals of the Silver Valley, which various USGS publications describe as ankerite (calcic iron/magnesium carbonates) and siderite (iron carbonates), in the belief that silver-lead-zinc massive sulfides, including significant copper and gold, may be found within them."

"We have suffered a mechanical failure that has temporarily halted drilling progress. The upper reamer, located approximately 12 FT behind the drill bit, has failed. The drill rod has sheared off at that spot, leaving 12 FT of rod at the bottom of the hole," said Mr. Russell. "We are now attempting to wedge around this spot, and expect to resume progress towards our target depth of 11,500 FT within the next two weeks from a higher elevation of 9900 FT."

The information contained in this news release has been reviewed and approved by Matthew Russell, P. Eng. President and CEO, the Company's Qualified Person as defined in National Instrument 43-101.

WARNING: the Company relies upon litigation protection for "forward looking" statements. The information in this release may contain forward-looking information under applicable securities laws. This forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those implied by the forward-looking information. Factors that may cause actual results to vary material include, but are not limited to, inaccurate assumptions concerning the exploration for and development of mineral deposits, currency fluctuations, unanticipated operational or technical difficulties, changes in laws or regulations, the risks of obtaining necessary licenses and permits, changes in general economic conditions or conditions in the financial markets and the inability to raise additional financing. Readers are cautioned not to place undue reliance on this forward-looking information. The Company does not assume the obligation to revise or update this forward-looking information after the date of this release or to revise such information to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws.

Shares issued: 179,919,564

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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