MDN Inc.

MDN Inc.

March 15, 2007 08:00 ET

MDN-GBS Strategic Partnership

MONTREAL, QUEBEC--(CCNMatthews - March 15, 2007) - MDN NORTHERN MINING (TSX:MDN) ("MDN") announces that its Board of Directors has approved the terms of a strategic agreement with an emerging gold producer, GBS Gold International Inc. ("GBS Gold"). The strategic partnership will allow MDN to ensure that it has the funds for an unprecedented exploration program for MDN and to act on new acquisition opportunities.

The strategic partnership will allow GBS Gold to acquire 8 million units of MDN. Each unit will consist of one share at $1.20 and one warrant at $1.60. Initially, MDN will receive $9.6 M. Thereafter, GBS Gold will be in a position to exercise its warrants to acquire up to 8 M additional shares of MDN, for an aggregate of 16 M shares, at an average price of $1.40. The warrants will expire 18 months and may be exercised at any time prior to 18 months from the closing date.

MDN will use approximately 80% of the net proceeds to reduce its debt obligations to Barrick Gold Corporation.

Following the closing of the private placement, scheduled for no later than April 9, 2007, Gil Playford, Chairman and Chief Executive Officer of GBS Gold, will be invited to join MDN's Board of Directors.

Haywood Securities Inc., acting as agent, will receive 400,000 units, each granted on the same terms as the private placement units.

Major exploration program

"The investment by GBS Gold will allow MDN to accelerate its short and mid-term growth plan to carry out an unprecedented exploration program for MDN, particularly in the area surrounding the Tulawaka Gold Mine in Tanzania", said Paul-A. Girard, Executive Chairman of MDN. Other than Tulawaka, MDN controls 20 exploration permits covering over 700 km2 within a 50 km radius from the mine.

MDN currently has made or confirmed several gold discoveries around Tulawaka, and in particular the Isambara, Viyonza, Isozibi, Mnezeki and Msasa projects (see the press releases on the web site: Management of MDN has taken the necessary steps to further these projects by implementing a program involving at least 25,000 metres of drilling. As part of the program, and following a reasonable level of success, infill drilling could lead to an initial calculation of the resources within eight to twelve-months.

MDN will also have the funds to finalize a couple of potential resource building acquisitions.

MDN is a mining exploration company with its head office in Montreal, Quebec. Its main exploration activities are carried out in Tanzania through a 30% participating interest in the Tulawaka Gold Mine and a controlling interest in 20 mining permits around Tulawaka.

GBS Gold (TSX:GBS) is an emerging gold producer at its Union Reefs Operations Centre located in historically productive goldfields in the Northern Territory of Australia.

Contact Information

    Paul-A. Girard
    Executive Chairman
    Dominique Moreau
    Richard Corbo
    Business Development