MacMillan Gold Corp.
TSX VENTURE : MMG

MacMillan Gold Corp.

November 02, 2005 12:52 ET

MacMillan Gold and Strikezone Combine Fiebre de Oro, Yerbabuena, and New Area of Influence

TORONTO, ONTARIO--(CCNMatthews - Nov. 2, 2005) - George A. Brown, President & CEO of MacMillan Gold Corp. (TSX VENTURE:MMG) is pleased to announce that MacMillan has entered into a revised Letter of Intent with Strikezone Minerals (Canada) Ltd. of Vancouver (TSX-V "SZN") which combines and replaces the Fiebre de Oro agreement announced November 15, 2004 and the Yerbabuena agreement announced April 25, 2005. The new agreement includes an area of influence of approximately 90 square kilometers which surrounds both properties. The agreement sets out the terms under which Strikezone may earn a 50% Joint Venture interest in MacMillan's 1,700 hectare Fiebre de Oro and 500 hectare Yerbabuena Properties in Jalisco State, Mexico.

Strikezone has been granted operator status. MacMillan has been appointed as manager of exploration programs until completion of the 50% earn in. MacMillan is entitled to a 10% administration fee on the exploration work program expenditures. Strikezone may earn a 50% interest in the Fiebre de Oro Yerbabuena Project for up to 1,000,000 shares of Strikezone subject to regulatory approvals of which 400,000 shares have been received for the two predecessor agreements. An additional 200,000 shares are due within 10 days of regulatory approval of this agreement. Also, 100,000 shares become due annually on September 30 until the year 2010. Strikezone is required to fund US$750,000 of cumulative exploration by September 30, 2010 of which US$100,000 is the required spending to September 30, 2006. Strikezone may terminate the option at their sole discretion after they deliver the additional 200,000 shares subject to regulatory approval and subject to returning the properties in good standing with a minimum of 6 months of assessment work credits and taxes paid. Expenditures incurred from October 1, 2004 including acquisition costs of the underlying properties are recoverable by MacMillan under the option agreement. A US$10,000 option payment, an exploration advance of US$50,000 and an administration fee advance of US$5,000 as required by the agreement have all been received by MacMillan.

An area of influence which is 10 kilometers east to west and 9 kilometers north to south has been added to the agreement. Strikezone has the right of first refusal to add any property obtained by MacMillan within this area to the Fiebre de Oro Yerbabuena Project in exchange for reimbursement of acquisition costs.

MacMillan considers that our property acquisitions are being recognized by peers within the industry as being of merit and the shares of Strikezone will provide MacMillan exposure to additional upside and can also provide future exploration funding without additional MacMillan dilution. MacMillan is pleased to expand upon our agreements with Strikezone as a partner.

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

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