Maxy Gold Corp.
TSX VENTURE : MXD

Maxy Gold Corp.

December 11, 2006 09:00 ET

Maxy Gold Corp. Completes Agreement With Federal International Mining Group on the Niukong Gold Project

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 11, 2006) - Maxy Gold Corp. ("Maxy Gold" or "the Company") (TSX VENTURE:MXD) today announced that the Niukong Exploration and mining permits have now been transferred to Yunnan Si Mai Mining Co. Ltd. (Si Mai), a Chinese cooperative joint venture company. This completes the transaction respecting the Niukong Gold project announced May 5, 2006 between Maxy Gold and Federal International Mining Group Co. Ltd. (Federal), a Hong Kong based international private mining group. Maxy Gold will receive approximately C$4.96 million, the balance due after the first 20% payment was made in May, 2006.

Andre Gauthier, President and CEO of Maxy Gold said, "This transaction will provide Maxy with a comfortable cash position to pursue our objectives in China without further share dilution. We are proud to be one of the first foreign companies to deal directly with a Chinese controlled group to obtain financing through the reallocation of assets. It is in keeping with our goal of establishing a credible exploration and development group within the Chinese Mining industry. The proceeds will allow Maxy to focus on its Midu project and the exciting new joint venture projects in Qinghai province and Tibet under our alliance with the Western Mining Group." (see October 4, 2006 Press release)

Upon the closing of this transaction Maxy Gold will be able to apply its strong balance sheet to the new projects being developed in the resource rich region of Western China under the strategic alliance with Western Mining Group, one of China's largest mining companies. The Chairman of the Western Mining Group, Mao Xiaobin, is a member of Maxy Gold's board.

Maxy is currently drilling the Muluozuo target on the Midu project and is pursuing soil geochemistry and detailing anomalies in the joint venture area.

China is the world's fourth largest gold producing country and is host to a number of world-class base and precious metal deposits with great geological potential and Maxy aims at participating in an exciting exploration and development period in Western China.

About Maxy Gold

Maxy Gold is focused on the acquisition, exploration and responsible development of precious and base metal properties in China, as well as building key strategic alliances, compiling a unique technical database and establishing the company at the forefront of China's financial marketplace. Maxy Gold has assembled a technically oriented team that combines more than 25 years of exploration experience in China. Maxy Gold aims to become a major and successful player in the development of a strong mining industry and venture capital market in China over the next few years. The company's current activities are focused on the MIDU and LUCHUN joint Ventures where gold and base metal mineralization has been identified. On October 12, 2006, Maxy Gold also announced a strategic joint venture alliance with Western Mining Co. Group, Ltd. one of China's largest mining and development companies. Western Mining is taking a substantial equity position in Maxy Gold and together they are joint venturing four gold and base metal properties held by Western Mining in Qinghai Province and Tibet, in western China. Maxy Gold has an aggressive program to increase its mining property position in China and other prospective countries within this region.

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

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