Mandorin Goldfields Inc.
TSX VENTURE : MGD

Mandorin Goldfields Inc.

December 18, 2006 16:42 ET

Mandorin Announces Kaldora Resources' US$2 Million Earn-In With Respect to Mineral Projects in South Africa and Zimbabwe

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 18, 2006) - Mandorin Goldfields Inc. ("Mandorin" or "the Company") (TSX VENTURE:MGD) is pleased to report that Kaldora Resources Limited ("Kaldora") has completed the US$2 million earn-in to gold projects in Zimbabwe and South Africa held through Duration Gold (Mauritius) Limited ("DGML") further to agreements among Kaldora, DGML, the Company and Duration Resources Limited ("DRL") announced in Mandorin's press release of July 10, 2006.

Further to Kaldora's aggregate US$2 million contribution to DGML, the relative shareholder positions in DGML after the completion of the consequential share transfers will be as follows:

- Kaldora will hold 75% of the issued share capital of DGML;

- DRL, a Hong Kong company 46% owned and controlled by Mandorin, will hold 21.5% of the issued share capital of DGML; Mandorin's indirect beneficial ownership in DGML will, therefore, be reduced to 9.9%; and

- Archaen Services Limited will hold 3.5% of the issued share capital of DGML.

Mandorin's direct and indirect interests in DRL, DGML and the gold projects in Zimbabwe and South Africa are subject to TSX Venture Exchange approval.

Mandorin has been advised by DGML that approximately US$907,000 of the US$2 million invested by Kaldora in DGML have been advanced to Duration Investments (Pvt) Ltd ("DIPL"), the owner of various mines in Zimbabwe referred to as the "Duration Gold Projects". As previously announced, DGML acquired an indirect option to purchase 100% of the then issued shares of DIPL for US$3 million. In addition, DGML is entitled to earn indirectly a 5% interest in DIPL for every US$100,000 advanced by DGML to DIPL for working capital (up to a maximum 50% equity interest), with any further advances exceeding US$1 million being recorded as shareholder loans. Accordingly, with over US$900,000 advanced by DGML to DIPL, DGML has now earned an indirect 45% equity interest in DIPL. The funds contributed by DGML to DIPL have been used to advance the development of the Duration Gold Projects.

The balance of approximately US$1,093,000 contributed by Kaldora to DGML has been applied to restore operations at the Klipwal Mine in South Africa. DGML indirectly owns a 100% interest in the Klipwal Mine. Mandorin has been advised by DGML that, based on historical reserve and resource reports (not National Instrument 43-101 compliant), it has been determined that there is sufficient justification to re-establish mining operations. The metallurgical plant at the Klipwal Mine has now been completely refurbished and fully commissioned. Commissioning has progressed using low grade surface accumulations and dump material. The first gold was smelted in late November, 2006.

In addition, Mandorin has been advised by DGML that the Klipwal Mine has been dewatered and refurbishment of the hoist is expected to be complete in late December, 2006. All requisite mining permits have been obtained to continue operations and underground mining operations commenced on December 5, 2006. The plan is to re-establish the underground working places that were operational when the mine closed in 2003.

Neither Mandorin nor DGML has completed a feasibility study on the Klipwal Mine and there is no certainty that the proposed operations at the mine will be economically viable.

For further information on the Klipwal Mine, refer to the National Instrument 43-101 report commissioned, and filed on SEDAR (www.sedar.com), by Mandorin.

Mandorin has also been advised that, in order to further DGML's operations, DGML will be seeking additional equity funding of US$600,000 (US$300,000 by January 5, 2007 and US$300,000 by February 1, 2007) which Kaldora and DRL have agreed to provide in proportion to their respective shareholdings.

On behalf of Mandorin Goldfields Inc.

Malcolm L. Stevens, Executive Chairman and President

Statements in this press release other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, constitute forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company's business, including risks inherent in mineral exploration and development. As a result, actual results may vary materially from those described in the forward-looking 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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