MDN Inc.

MDN Inc.

March 12, 2008 10:53 ET

MDN Acquires New Property With High-Grade Gold Results in Northern Tanzania

High grade of 16.68 g/t gold over 5.76 meters

MONTREAL, QUEBEC--(Marketwire - March 12, 2008) - MDN Inc. (TSX:MDN) ("MDN") is pleased to announce the execution of an Option and Joint Venture Agreement with Lakota Resources Inc. to acquire an undivided interest of 60% in the Ikungu Property (Tanzania), in consideration for cash payments totalling US$215,000 and the execution of exploration work for an amount of US$2M over a five-year period. Pursuant to the Agreement, MDN may earn an additional 1% interest for each tranche of US$200,000 of exploration work and may therefore increase its undivided interest up to 70%.

The Ikungu project covers an area of 16.84 km2 on the eastern shore of Lake Victoria at 20 km southwest of the town of Musoma and 135 km northeast of the town of Mwanza, Northern Tanzania. The project is located in the Mara-Musoma belt, one of the Lake Victoria goldfields greenstone belts. Several gold deposits were historically mined in this belt that also hosts Barrick's North Mara gold mine with 4.3 million ounces of gold in reserve.

Quartz veins occur within the sedimentary units, forming "reefs" from which, gold mineralization was mined. From 1938 to 1946, a total of about 19,000 ounces of gold was mined at a grade of 12.5 g/t Au from underground workings in the Main / Forest Reef. This gold-bearing structure extends over a minimum strike length of 2.4 km and remains opened to the west.

Since the 1960's, the property was discontinuously explored. Only 10 diamond drill holes and 7 RC holes effectively tested the main gold bearing structure. The holes are usually widely spaced: from 150 m to 430 m along strike. All the drill holes west of SIK01 (see attached map) intersected gold mineralization indicating the presence of gold mineralization over at least 2 km.

The quartz veins are locally high grade (SIK01 with 5.76m @ 16.68g/t Au at 140m including a section of 2.88m @ 30.46g/t Au, IKD04 with 4.84m @ 6.74g/t Au at 226m including a section with 2.02m @ 13.26g/t Au and SIK08 with 6.91m @ 9.91 g/t Au at 205m including a section of 2.88m @ 30.46 g/t Au). They are found within larger gold-bearing structures, up to 30m wide in places.

Core logging showed that besides the quartz veins with visible gold, the gold-bearing structures are composed of sheared sediments and basalts containing disseminated gold mineralization. Sampling of quartz veins in 76 trenches from the Main / Forest Reef returned an average of 9.21 g/t Au over an average thickness of 0.86 m for the quartz veins. The trenching program proved the continuity of the mineralized quartz veins over at least 1.2 km.

A synthetic map of the reef area within the Ikungu licences is available at the following address:

Dr. Dominique Fournier stated: "We are very pleased to explore this property with our partner Lakota. Ikungu hosts a gold structure recognized over 2 km strike and to a depth of over 200 meters. Drill holes are widely spaced despite historical mining but results are very encouraging. We intend to systematically drill test the reefs to fully evaluate the gold bearing structures and if results are positive, quickly move towards a 43-101 compliant resource calculation."

The historical data were provided by Lakota Resources. Technical information in this release was reviewed by geologist Dominique Fournier, Ph.D., who acts as a qualified person in accordance with NI 43-101.

MDN Inc. is a Montreal-based Canadian exploration company that holds a 30% participation in the Tulawaka Gold Mine (Tanzania). Its main exploration activities are carried out in Quebec through gold and base metal interests and in Tanzania through a majority interest in 20 adjacent mineral licenses.

Contact Information