Maxy Gold Corp.
TSX VENTURE : MXD

Maxy Gold Corp.

October 12, 2006 09:00 ET

Maxy Gold Corp.: Western Mining Provides $2,250,000 Financing at $1.20 Per Unit

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 12, 2006) - Maxy Gold Corp. (TSX VENTURE:MXD) ("Maxy") is pleased to announce that a non-brokered private placement to raise $2,250,000 has been arranged with a wholly owned subsidiary of Western Mining Co. Group, Ltd ("Western Mining"). Under the Placement, Maxy will issue West Mining (Hong Kong) Co. Ltd. 1,875,000 Units priced at $1.20 per Unit, being the approximate average of Maxy's stock over the last 3 months. The Units are comprised of one common share and one common share purchase warrant exercisable for a period of two years from closing at $2.00 per share.

On October 4, 2006. Maxy announced a joint venture alliance with Western Mining, in which Maxy will earn a 50% interest in four gold and base metal projects held by Western Mining in Tibet and Qinghai Provinces of western China. The proceeds of the placement will be applied to these joint ventures and to general working capital. This financing strengthens the alliance between Maxy and Western Mining and furthers Maxy's strategy of sourcing and developing projects in China through strong relations with major Chinese mining and exploration companies.

Western Mining, one of the largest mining conglomerates in China, is based in the province of Qinghai, focuses on the mining, processing and sale of lead, zinc, copper and other non-ferrous metal resources. Among other assets, Western owns four large and medium sizes non-ferrous mines, including the Xitieshan Pb-Zn mine which is the largest single mine in China with an annual production capacity of over 1.5 million tons of Pb-Zn minerals and 160 thousand tons of Pb and Zn metal. The Chairman of Western Mining, Mao Xiaobin, is member of Maxy's board of directors

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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