Maxy Gold Corp.
TSX VENTURE : MXD

Maxy Gold Corp.

August 10, 2005 18:09 ET

Maxy Gold Corp.: New Copper Discovery at Luchun Gold Project, Yunnan Province, China

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 10, 2005) - MAXY GOLD CORP. ("Maxy") (TSX VENTURE:MXD) announced today the discovery of a major zone of copper mineralization on its Niujaozai exploration permit, one of the 18 exploration areas making up the Luchun Gold Joint Venture in southern Yunnan Province, China. The mineralized zone extends for 3 km in a northwest-southeast direction and is approximately 1 km wide. The anomaly is open to the south-southeast.

The Niujaozai Property, originally one exploration permit, has been expanded to cover an area of 50 km2 by acquiring an additional 3 exploration permits following the discovery of this widespread zone of copper mineralization on the original exploration permit. Additional ground acquisition is underway.

The Property is located in Yuyuang County, Honghe Prefecture, some 300 km south of the city of Kunming. Access is excellent through a road accessing the town of Niujiaozai (pop. about 1,000), which is within the Property boundaries.

GEOCHEMICAL SOIL RESULTS

A total of 720 soil samples were collected by Maxy on northwest trending grid lines located 500m apart, covering the entire original claim area. Soil results returned highly anomalous copper (Cu) and significant coincident gold (Au) mineralization. The soil contour with values greater than 500 parts per million (ppm), Cu covers 430 hectares within which 281 samples returned Cu values greater than 500 ppm and 91 samples returned Cu values greater than 1,000 ppm. The anomaly remains open to the south and southeast. Gold is largely coincident with the Cu and all soil samples with Au values greater than 50 ppb are contained within the greater than 500 ppm contour. One sample returned 4,200 ppb Au (4.2 grams gold per tonne). 17 samples assayed between 100 to 339 ppb Au and 82 samples returned over 50 ppb Au.

GEOLOGICAL CONTEXT

The area is underlain by gneiss with minor gabbro. The gneiss consists of biotite-quartz-feldspar gneiss and interlayered granitic gneiss. Minor leucogneiss in the eastern part of the Property hosts narrow layers of marble. Structurally the gneisses strike westerly and dip 10-30 degrees to the north except in the mineralized area where dips steepen 50-80 degrees to the northwest.

MINERALIZATION

The mineralized zone consists of a large area of strong red biotite-quartz- (k feldspar?) alteration localized within biotite gneisses. The rock hosts from trace to 3% of disseminated pyrite, pyrrhotite and chalcopyrite and is commonly cut by numerous thin sub parallel veinlets of chalcopyrite. These Copper-rich veins are marked by strong alteration haloes of chlorite and albite extending several millimeters beyond the veinlets. Quartz veins up to 60 centimetres (cm), wide with abundant coarse-grained pyrrhotite and chalcopyrite are also observed within the zone.

Thirty two (32), rock samples were collected in July and assay results are pending.

PLANNED EXPLORATION

Maxy will pursue systematic mapping and sampling of the original property and will initiate as soon as possible the extension of the grid line soil geochemical survey over the Cu/Au anomaly extension to the south and southeast.

Both the soil sampling and the mapping define a large area of strong Cu+/-Au mineralization within altered gneisses. The mineralized zone has been traced south off the Property and remains open to the south and southeast. Additional ground covering the projected strike of the Cu anomaly will be acquired and soil sampled. Prior to defining drill targets, in-fill soil sampling and mapping will be completed on the 500m grid anomaly.

There is no obvious limit yet established to this large and well developed mineralized area and a stream sediment survey to expand and help define the limits of the target will be undertaken.

QUALITY CONTROL PROGRAM

The program was supervised by Dr. Xianda Wang (Phd, University of Salzburg, Austria); general manager of the Luchun Joint Venture. Andre Gauthier, president of Maxy, is the qualified person under National Instrument 43-101, responsible for reviewing the data in this press release.

The samples were transported to Geology Nuclear Group Team 209 preparation laboratory in Kunming where samples are pulverized to 200 mesh and sent for analysis to Langfang Institute of Geochemical and Geophysical Exploration (certification ISO 9001) a well regarded analytical laboratory in Langfang, Hebei Province, located some 60 km south of Beijing.

As part of the quality assurance program systematic some coarse rejects and pulp samples and standards (approximately 20%) are shipped directly to ALS Chemex in Vancouver and reassayed. ALS Chemex is an ISO 9002 registered laboratory and is preparing ISO 17025 certification.

Maxy's Qualified Person has inspected the preparation laboratory facility and the Langfang laboratory facility and found their procedures to meet industry standards.

LUCHUN GOLD JOINT VENTURE

The Luchun Gold Joint Venture consists of 18 exploration permits, including the Niubo-Dichu Property and the Niukong Property where Maxy is pursuing an aggressive exploration program including drilling, geophysical surveying and underground mapping and sampling. The Niujaozai Cu/Au discovery resulted from the preliminary investigation of 5 exploration permits selected for prioritized exploration work

Maxy hold 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.

MAXY GOLD CORP.

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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