Maxy Gold Corp.
TSX VENTURE : MXD

Maxy Gold Corp.

March 27, 2006 09:00 ET

Maxy Gold Corp.: High Grade Gold Intersected in Drilling and Underground Exploration Adits on the Dichu Prospect, Yunnan Province, China

VANCOUVER, BRITISH COLOMBIA--(CCNMatthews - March 27, 2006) - MAXY GOLD CORP. ("Maxy") (TSX VENTURE:MXD) is pleased to report intersections of high grade gold in the first drill campaign and the ongoing underground exploration program on the Dichu prospect of the Luchun Gold Joint Venture in southern Yunnan Province, China.

This first drill campaign was successful in its aim of extending the known underground mineralized zone to the northwest and deeper than the underground workings. It included 6 Diamond drill holes totaling 900 meters (# DC-01 to 06).

The first Hole, DC-01, extended the known mineralization 100 metres (m) to the northwest, by intersecting 8.4m grading 2.68 grams per tonne (g/t) Gold (Au), with 2 contained high grade zones of 2.05m of 3.1 g/t Au and 2.53m of 5.1 g/t Au, at a vertical depth of 100 meters, at elevation level 1130m. Hole DC-06 intersected the mineralized zone at a depth of 150m, returning 1.0m of 5.82 g/t Au. This is some 30m below the lowest underground tunnel level at 1075m elevation. Two holes, DC-02 and DC-05 located 100m to the northwest of the known zone intersected anomalous gold values of 0.5 g/t Au over 2.1m and 0.6 g/t Au over 1.5m respectively, in the mineralized breccia host rock but failed to intersect ore grade material, being apparently outside the main high grade mineralized zone.

Concurrent with the Diamond drilling program Maxy is also pursuing its underground exploration program to test the northwestern extension of the known mineralized zone at the 1100m level. A cross cut (KD-11-CM4) located 75m from the last cross cut intersected 4.3m grading 5.9 g/t Au confirming the extension of the main high grade zone.

All gold intersections, either in diamond drill holes or in undergrounds adits are associated with oxide material. These results confirm the presence of a mineralized lens measuring at least 200m long, 1m to 4.3m wide and 100m deep. The alteration zone is still open to the northwest and southeast in both directions and below the 1050m level. Additional lenses are also foreseeable.

Additional detailed underground mapping and sampling programs are underway. The Niubo-Dichu Property is covered by a mining licence held by the joint venture company.



NIUBO ZONE DRILLING PROGRAM
Best Drill Intersections

---------------------------------------------------------------------
Interval
Drill Azimuth Inclination Total True
Hole# (degrees) (degrees) depth(m) From(m) To(m) Width(m)Au(g/t)
---------------------------------------------------------------------
DDH-DC01 230 -60.5 165.10 104.05 112.45 8.40 2.68
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includes 104.05 106.10 2.05 3.43
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includes 107.50 110.03 2.53 5.20
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DDH-DC02 231 -60 105.10 54.20 56.00 1.80 0.46
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less
than
DDH-DC03 103.70 0.01
---------------------------------------------------------------------
less
than
DDH-DC04 137.00 0.01
---------------------------------------------------------------------
DDH-DC05 230 -60 186.60 17.22 119.33 2.11 0.47
---------------------------------------------------------------------
DDH-DC05 139.35 140.80 1.45 0.71
---------------------------------------------------------------------
DDH-DC06 229 -60.5 201.50 159.60 160.60 1.00 5.82
---------------------------------------------------------------------


The next drilling phase will focus on the Niubo sector of the property (2.5 km southeast of the Dichu prospect), where a surface sampling program is underway in the area of former trench results which reported 13.47m averaging 18.11 g/t Au. These former trenches are no longer accessible as the area has been hand-mined by a pit approximately 66m long and up to 30m wide and 20-30m deep. Due diligence sampling by B.J. Price, P.Geo, in the fall of 2003 of 1m chips from the zone at the base of the pit averaged 10.15 and 18.80 g/t gold, confirming the high grade gold values of the trenching.

A magnetometer survey also indicates the surface alteration to have much greater size beyond the area that has been the focus of surface exploration to date. 4 drill holes totaling 500m, under the former producing area are planned to start in March.

NIUBO-DICHU PROPERTY

The Niubo-Dichu Property is approximately 35 km south of the Niukong Property, both of which are within Maxy's greater Luchun Regional Gold Joint Venture. Previous operators completed soil sampling between the Dichu and Niubo prospects and soil anomalies extend for over 4.5 km. Soil geochemical and trench results over the Dichu zone returned some excellent grades. Saprolitic mineralized zones were explored by 9 major trenches spaced at 20m intervals. Trenching revealed good gold grades over a strike length of approximately 200m with widths up to 10.5 m.

As previously announced, the main high-grade zone previously has been delineated in surface trenching by prior operators and returned values up to 10.55m averaging 4.43 g/t Au and 4m averaging 14.73 g/t Au. A 6m due diligence sample by B.J. Price in the fall of 2003 returned 20.82 g/t gold.

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.

DICHU - UNDERGROUND WORKS

At Dichu, underground work has been carried out to check the depth extension of the surface trench mineralization. Work included: three adits totaling 525m (on the 1150m, 1100m and 1075m elevation levels); on the 630m sublevel (1131m elevation) a crosscut through the mineralized zone and 162m of raises had been previously completed. The 2006 underground exploration includes some small scale production from the first level (1150m) and an extension of the 1100m level to the northwest. 50 meters have been completed so far in this campaign.

The Dichu main mineralized lens has an approximate dimension of 200m long, 100m deep and a width varying from 1.2m to 4.3m. Mineralization is open at depth, and from the deepest level tested the zone is open to the northwest. As previously reported, sampling along strike of the mineralized zone has given some very high results including 48.0 g/t Au over 15.5m in sublevel 1131m and 6.5 g/t Au over 13.5m in level 1110m and 12.9 g/t Au over 8.8m on level 1148m.

The mineralized zone at Dichu can be traced a few hundred meters south of the trenched area where it was exposed by recent excavations for a water tank. The zone lies immediately adjacent to massive recrystallized to silicified limestone.

QUALITY CONTROL PROGRAM

The quality control program is under the supervision of Dr. Xianda Wang (Phd, University of Salzburg, Austria), general manager of the Luchun Joint Venture, and Andre Gauthier M.Eng, BSc, president and CEO of Maxy, who serves as the Qualified Person under National Instrument 43-101.

All diamond drilling has been performed using PQ, HQ and NQ diameter core with recoveries averaging greater than 95%. Core is logged and split on site under the supervision of Maxy geologists. Sampling is done generally on 1 or 2m intervals and samples are transported by company staff to the certified SGS Lab in Kunming and assayed at SGS Tianjin laboratory. All samples are dried, crushed and split and pulverize to greater than 90% over -200 # (75 um) All samples are assayed using fire assay, 30g charge with and AAS finish. Other elements (Ag, As Cu, Zn, Mo, Ni, Sb) are also assayed but results not received yet. Underground samples are taken approximately every 1 to 2m or according to the visual mineralized zone.

Part of the quality assurance program includes the insertion of a known standard prepared by SGS Tianjin. Approximately 20% of the core rejects and pulp samples are sent directly to ALS Chemex in Vancouver and re-assayed for gold. ALS Chemex is an ISO 9002 registered laboratory.

The Luchun Project comprises 18 exploration permits, including the Niubo-Dichu Property and the Niukong Property. 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.



Dichu Property 2006 Underground Exploration

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Interval
True
Level(m) Cross Cut # Width(m) Au(g/t)
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1116 KD-DC-II-CM4 4.3 5.91
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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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