Majestic Gold Corp.
TSX VENTURE : MJS

Majestic Gold Corp.

April 05, 2006 19:23 ET

Majestic Gold Corp.-Resource Estimate at Sawayaerdun: 606,962 Ounces Indicated & 773,751 Ounces Inferred

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 5, 2006) - Majestic Gold (TSX VENTURE:MJS) is pleased to announce the results of a recently completed resource estimate on Zone IV of the Sawayaerdun Project, located in western Xinjiang Province, China. Two statistical methods were conducted using various cut-off grades to calculate the resource and the results are highlighted and tabulated below.

HIGHLIGHTS INCLUDE:

Indicated Resource:

Kriged Method:

- 17,967,204 tonnes grading 1.16 grams per tonne (605,962 ounces) using 0.5g/t cut-off

- Including 9,221,858 tonnes grading 1.55 grams per tonne (416,035 ounces) using 1.0g/t cut-off

Nearest Neighbor

- 15,317,324 tonnes grading 1.30 grams per tonne (580,104 ounces) using 0.5g/t cut-off

- Including 7,834,445 tonnes grading 1.82 grams per tonne (416,811 ounces) using 1.0g/t cut-off

Inferred Resource:

Kriged Method:

- 24,377,485 tonnes grading 1.09 grams per tonne (773,751 ounces) using 0.5g/t cut-off

- Including 12,567,830 tonnes grading 1.40 grams per tonne (513,039 ounces) using 1.0g/t cut-off

Nearest Neighbor

- 20,730,150 tonnes grading 1.25 grams per tonne (759,072 ounces) using 0.5g/t cut-off

- Including 11,163,553 tonnes grading 1.71 grams per tonne (555,789 ounces) using 1.0g/t cut-off

"We're pleased to report that this recent study confirms the historical resource estimates conducted by the Xinjiang Bureau of Geology and Mineral Resources (XBGMR) at Sawayaerdun," said John Zimmerman, head of exploration for Majestic Gold. "More importantly, we've been able to upgrade much of this resource up to an indicated category. This provides a basis on which to conduct our scoping studies moving forward. We believe Sawayaerdun represents an ideal candidate for low-cost open-pit carbon-in-leach (CIL) operation. For our Phase II program in 2006, we intend to do additional definition drilling within Zone IV to expand and upgrade this resource, along with bulk sampling and detailed metallurgical testing to allow for detailed scoping studies."

The study was based on work performed by Majestic in 2004 and 2005 that included 8,939 metres of drilling in 46 holes and 20 trenches along a 2 kilometre section of Zone IV, which has been traced on surface for over 4 kilometres.

Complete details are tabulated below:



Table 1:
Sawayaerdun Zone IV Resource Estimate

Method: Kriged
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Cutoff grade Au ounces
CLASS g/t Tonnes Au g/t contained
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Indicated greater than 2.0 1,258,329 2.52 92,740
Indicated greater than 1.0 9,221,858 1.55 416,035
Indicated greater than 0.5 17,967,204 1.16 605,962
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Cutoff grade Au ounces
CLASS g/t Tonnes Au g/t contained
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Inferred greater than 2.0 868,424 2.32 58,754
Inferred greater than 1.0 12,567,830 1.40 513,039
Inferred greater than 0.5 24,377,485 1.09 773,751
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Method: Nearest Neighbor
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Cutoff grade Au ounces
CLASS g/t Tonnes Au g/t contained
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Indicated greater than 3.0 536,698 3.96 61,981
Indicated greater than 2.0 2,335,353 2.75 187,461
Indicated greater than 1.0 7,834,445 1.82 416,811
Indicated greater than 0.5 15,317,324 1.30 580,104
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Cutoff grade Au ounces
CLASS g/t Tonnes Au g/t contained
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Inferred greater than 3.0 454,616 3.78 50,205
Inferred greater than 2.0 2,328,113 2.71 183,888
Inferred greater than 1.0 11,163,553 1.71 555,789
Inferred greater than 0.5 20,730,150 1.25 759,072
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These resource estimates were produced in accordance with National Instrument 43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum standards on mineral resources and mineral reserves definitions and guidelines by an independent third party, Wardrop Engineering Inc., Greg Z. Mosher, P. Geo. The data used in this study was collected by Majestic Gold Corp. during its 2004 and 2005 exploration programs. A 43-101 report was also produced by Wardrop and will be filed shortly with the Toronto stock exchange.

Gold mineralization at Sawayaerdun is hosted by Silurian and Devonian-aged carbonaceous phyllites in a widespread gold system that breaches surface in over 20 separate zones; the main northwest-trending gold zones are located in the north-central portion of the property and cover an area of 5.0 by 2.5 kilometres. Zone IV (4,000 metres) and three other major subparallel gold zones (I, II, XI) that have been identified in trenches for between 1,600 (zone XI) and over 3,000 metres (zones I and II) are the main gold zones identified in this vast mineralized area. These additional gold zones occur in an anticlinal structure that trends across the border into Kyrgyzstan.

In Zone 1, Majestic also drilled four holes for a total depth of 435 metres. These holes tested 400 metres of strike length, which has been traced for over two kilometres at the surface. The holes drilled by Majestic into Zone 1 were the first holes drilled in this target and the results were very favourable: each of the four intersected potential ore grades (up to 2.31g/t Au) and thicknesses (up to 21.3 metres).

"These results are highly encouraging for the overall property potential and we plan further definition drilling along Zone I and the other Zones identified on the property with the objective of defining additional resources on the property," Zimmerman said.

This news release was reviewed by Qualified Persons as defined by National Instrument 43-101, including Rod Husband, P. Geo., who has prepared the technical information contained herein.

On Behalf of the Board of Directors

Rod Husband, P.Geo., Director

This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

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

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