MacDonald Mines Sells Its Hornby Property

TORONTO, ONTARIO--(Marketwired - June 5, 2015) - MacDonald Mines Exploration Ltd. (TSX VENTURE:BMK) ("MacDonald Mines" or the "Company") announces that effective June 5, 2015, it entered into a Mineral Property Acquisition Agreement with KWG Resources Inc ("KWG") to sell the mineral claims known as the Hornby Property, located 80 kilometres southeast of Webequie Ontario. The Hornby Property is comprised of five claims totaling about 15.7 square kilometres and is adjacent to the Big Daddy Chromite Discovery.

The terms of the sale are as follows:

• Within 5 business days of the agreement, KWG will issue 4,000,000 of its common shares to MacDonald Mines;
  
  
• MacDonald Mines retains a 2% net smelter return ("NSR") on the Hornby Property;
  
  
• KWG can purchase one percent (1%) of the NSR, at any time prior to commencement of production from the claims, by making a cash payment of one million Canadian dollars ($1,000,000) to MacDonald Mines;
  
  
• KWG retains the first right of refusal to purchase the NSR on similar transaction terms should MacDonald Mines, at its sole discretion, elect to sell the entire (or any part) of the 2% NSR to a bona-fide third party.
  
  

Butler Property Highlights

MacDonald Mines strategic focus has been on exploration for discovering potential Copper/Zinc (VMS) and Nickel-Copper-PGE deposits in the "Ring of Fire" area of the James Bay Lowlands of Northern Ontario. Following the sale of the Hornby Property, the Company still holds six properties in the region including MacDonald's flagship Butler Property.

The Butler Property has the potential to be a large Volcanic-associated Massive Sulphide (VMS) camp. The property consists of 73 contiguous mining claims and covers an area of 176.9 square kilometres. Five prospective VMS mineralized zones, as well as a Ni-Cu-PGE zone have been identified on the property. Drilling highlights from MacDonald Mines' past exploration programs are outlined below:

* Lengths recorded above in metres (m) are drill intersected core and do not represent true widths.

Quentin Yarie, MacDonald Mines President and COO commented, "There is good potential for a large VMS deposit at Butler. We are looking forward to getting back in the field to drill some of the promising targets that were identified during our previous exploration programs. We are basically "drill ready" so our team's immediate focus will be on securing funding and/or partners to move this project forward."

Qualified Person

Quentin Yarie, PGeo. is the qualified person responsible for preparing, supervising and approving the scientific and technical content of this news release and is responsible for overseeing all aspects of the company's exploration programs.

About MacDonald Mines Exploration Ltd.

MacDonald Mines Exploration Ltd is a mineral exploration company headquartered in Toronto, Ontario, Canada. The company is strategically focused on Copper and Zinc (VMS), and Nickel exploration in the Ring of Fire area of the James Bay Lowlands of Northern Ontario. The Company's common shares trade on the TSX Venture Exchange under the symbol "BMK".

Cautionary Statement:

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. The foregoing information may contain forward-looking statements relating to the future performance of MacDonald Mines. Forward-looking statements, specifically those concerning future performance, are subject to certain risks and uncertainties, and actual results may differ materially from MacDonald Mines plans and expectations. These plans, expectations, risks and uncertainties are detailed herein and from time to time in the filings made by MacDonald Mines with the TSX Venture Exchange and securities regulators. MacDonald Mines does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.

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.