Maxy Gold Corp.
TSX VENTURE : MXD

Maxy Gold Corp.

June 27, 2005 09:00 ET

Maxy Expands Exploration Program On Niubo-Dichu Property

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 27, 2005) - MAXY GOLD CORP. ("Maxy") (TSX VENTURE:MXD) is pleased to announce it has commenced a 45 kilometre (km) Magnetic (Mag), and Induced Polarization (IP), geophysical survey to follow up on the very high grade gold mineralization encountered underground in the Dichu area of the Niubo-Dichu Property in southern Yunnan Province, China. Mag and IP work very well in this environment, and will help reveal and define any extension of mineralization along the 4km geochemical anomaly between the Niubo and Dichu prospects. Underground workings at Dichu reported on June 16, 2005 disclosed the existence of very high grade lens of gold mineralization with samples along strike returning up to 48.0 grams per tonne gold over 15.5 metres(m), on tunnel sublevel 1131m.

The Dichu mineralized zone has a dimension of 100 m long, 100 m deep and a width varying from 1.2m to 3.8m. The zone remains open at depth and from the deepest level, the zone is open to the north and the south. Work is underway cleaning and stabilizing tunnels in preparation for their extension. Pilot test leaching of the high-grade material is planned to commence in late September.

The geophysical survey, along with a detailed soil sampling survey, geological mapping and trenching will be carried out over a distance of 2- to 4-km with line spacing every 100m. The program will help define drill targets over the mineralized horizon between the Dichu and Niubo prospects, and aid in identifying additional Dichu-type high grade mineralization lenses.

Mineralization at Dichu and Niubo is hosted by a thin unit of limestone and calcareous sediments within siliciclastic rocks, spatially associated with a dioritic intrusive. Gold mineralization shows a close spatial relationship with skarn (magnetite/diopside), development and occurs in highly altered intrusive dykes cutting the stratigraphy and in structural zones cutting the skarn.

The survey will be supervised by Dr. Xianda Wang (Phd, University of Salzburg, Austria), general manager of the Luchun Joint Venture, and conducted by YGMR Industry Group, an established Chinese geophysical and geological contractor.

The Niubo-Dichu Property, and the Niukong Property 35 km north (where drilling is on-going) are two of the 18 exploration permits held by the Luchun Joint Venture. Maxy holds the rights to acquire an 80% interest in the Luchun Gold Joint Venture and a 75% interest in the Midu Gold Joint Venture, both located in Yunnan Province, China.

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 resource 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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