Bandera Gold Ltd.

Bandera Gold Ltd.

March 15, 2007 19:34 ET

Bandera Enters Negotiations for Joint Venture With Penoles

EDMONTON, ALBERTA--(CCNMatthews - March 15, 2007) - Bandera Gold Ltd. (the "Company") (TSX VENTURE:BGL) announced today that it is entering negotiations to form a joint venture with Industrias Penoles S.A. de C.V. (Penoles) regarding the exploration and development of its Cinco Minas silver/gold property in Mexico.

Penoles began operations in 1887 as a mining company. They have integrated operations in the areas of exploration, mining, metallurgy and chemicals, and together with its subsidiaries, make up one of Mexico's largest industrial conglomerates. Listed on the Mexican Stock Exchange since 1968; the stock is included in the IPC index. Penoles is one of the largest net exporters in Mexico's private sector and is the world's largest producer of refined silver, metallic bismuth and sodium sulphate, and a leader in Latin America in refined gold, lead and zinc.

Main mining facilities

- Fresnillo: the world's richest silver mine.

- La Cienega: Mexico's richest gold mine.

- La Herradura: Mexico's largest gold mine.

- Naica: largest lead producing mine in Mexico.

- Francisco I. Madero: Mexico's largest zinc mine.

Main metallurgical operations

- Met-Mex: the world's fourth largest metallurgical complex, and the largest producer of refined silver and metallic bismuth.

Main chemical operations

- Quimica del Rey: world's largest sodium sulfate producing plant.

Bandera Gold Ltd. is a Junior Canadian Exploration Company whose corporate strategy is to build shareholder value by finding and developing overlooked and undervalued mineral properties in North America and South America. By partnering with an experienced mining and mineral exploration entity, the Company's core focus will be the continued exploration and advancement of the Cinco Minas property in Mexico to production, exploration of the Gran Cabrera property in Mexico and the exploration of the Belmira property in Colombia.

On behalf of the Board

Kelvin Williams,CEO

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

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