MacMillan Gold Corp.
TSX VENTURE : MMG

MacMillan Gold Corp.

September 06, 2005 16:44 ET

MacMillan Gold Options 50% of La Cucharas Gold and Silver Property to Young-Shannon Gold Mines

TORONTO, CANADA--(CCNMatthews - Sept. 6, 2005) - George A. Brown, President and CEO of MacMillan Gold Corp. (TSX VENTURE:MMG), is pleased to announce that MacMillan has signed a Letter of Intent with Young-Shannon Gold Mines Limited of Toronto (TSX VENTURE:GYS). The signed agreement grants to Young-Shannon the right to earn a 50% interest in the La Cucharas Gold and Silver Property in the state of Nayarit in Mexico. The La Cucharas Property is a land package comprised of numerous mineral claims covering over 3,500 hectares. Some claims have been granted while others are filed pending government review and approval. All claims are within a well defined area of influence which is 14 km east-west by 12 km north-south. Both companies intend to convert the signed letter of intent into an industry standard joint venture agreement in the near future.

Under the signed agreement, MacMillan is entitled to 2,500,000 shares of Young-Shannon subject to regulatory approval, of which 500,000 shares are due within 10 days of regulatory approval and 500,000 shares are due on each of the end dates of phase 1, phase 2, phase 3 and phase 4. The agreement appoints Young-Shannon as the operator and MacMillan as the exploration manager until completion of the 50% earn in by Young-Shannon. Young-Shannon is required to spend US$2,000,000 to earn its 50% interest; US$125,000 by August 31, 2006, US$400,000 by August 31, 2007, US$900,000 by August 31, 2008, US$1,400,000 by August 31, 2009 and US$2,000,000 by August 31, 2010. MacMillan is entitled to a 10% management fee on exploration expenditures. The effective exploration expenditure date for the agreement is set as January 1, 2005. Young-Shannon has paid a US$10,000 non-refundable advance to be applied retro-actively against exploration expenditures incurred. Young-Shannon may terminate the option at any time at their sole discretion as long as the agreement is in good standing for the shares due to MacMillan, exploration expenditures incurred have been paid, and the properties are returned in good standing with a minimum of 6 months of assessment work credits and taxes paid.

Exploration programs will be conducted by our Manager of Exploration, William Hamilton, P.Geo. and Qualified Person under the supervision of our VP Exploration, David Bending P.Geo. and Qualified Person. Work programs for La Cucharas will also be subject to review and approval by the President and CEO of Young-Shannon, Greg Lipton P.Geo and a Qualified Person.

Attracting joint venture partners is part of MacMillan's strategy to add value to our numerous properties while minimizing share dilution to our shareholders. MacMillan is actively pursuing additional joint venture property option partners.

MacMillan Gold Corp. is a Canadian resource company listed on the TSX Venture Exchanges: Symbol "MMG"

The TSX Venture Exchange has not reviewed and accepts no responsibility for the adequacy or accuracy of this news release

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