MacMillan Gold Corp.
TSX VENTURE : MMG

MacMillan Gold Corp.

March 14, 2007 13:40 ET

MacMillan Gold Options 50% of Tetasairi Properties for US$1,000,000 of Exploration Expenditures and 1,000,000 Common Shares

TORONTO, ONTARIO--(CCNMatthews - March 14, 2007) - George A. Brown, President and CEO of MacMillan Gold Corp. (TSX VENTURE:MMG), is pleased to announce that MacMillan has signed a Letter Agreement with Consolidated Venturex Holdings Ltd. ("Venturex") of Vancouver (TSX VENTURE:CVA) setting out the general terms of a transaction pursuant to which MacMillan will grant Venturex the right to earn a 50% interest in the Tetasairi Properties in the state of Sinaloa in Mexico. The agreement between the parties contemplates the entering into a more formal Option to Joint Venture Agreement, ("Definitive Agreement"). MacMillan currently owns 100% of the Tetasairi Properties, which includes the original 743 hectare Tetasiari Property optioned by MacMillan in 2002 subject to a 2.5% Net Smelter Royalty (News release September 24, 2002) and eight other properties in the defined area of interest for a combined total of over 8,000 hectares.

Under the terms of the Letter Agreement MacMillan is entitled to receive, subject to regulatory approval, 1,000,000 shares of Venturex to be issued 400,000 shares within 10 days of regulatory approval and 200,000 shares by each March 1 of 2008, 2009 and 2010. Venturex is required to spend a minimum of US$100,000 in the first year as part of the four year US$1,000,000 exploration expenditure requirement to earn its 50% interest. The agreement is subject to a formal Definitive Agreement, which will integrate the terms and conditions of the current Letter Agreement. Venturex will be the operators and are entitled to a 10% management fee after earning their 50% interest in the properties. The management fee is reduced to 5% if and when the joint venture completes a bankable feasibility study.

Once Venturex has completed all four years of share and spending commitments, they may increase their ownership to 60% for an additional 200,000 shares of Venturex and incurring an additional US$200,000 in exploration expenditures.

Exploration programs will be conducted by Venturex with the programs reviewed and approved by MacMillan.

MacMillan welcomes Venturex as a joint venture partner. Attracting qualified joint venture partners is part of MacMillan's strategy to add value to our exploration property portfolio while minimizing share dilution. MacMillan is actively pursuing joint venture partners on some of MacMillan's other properties.

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.

Contact Information