MDN Inc.

MDN Inc.

October 17, 2006 11:54 ET

MDN Northern Mining: Gold Intersections at Isambara-Tanzania

MONTREAL, QUEBEC--(CCNMatthews - Oct. 17, 2006) - MDN NORTHERN MINING (MINIERES DU NORD) (TSX:MDN) is pleased to announce the first results from the current phase of its drilling program, the purpose of which is to test several gold targets in the Tulawaka region, Tanzania. These results pertain to the Isambara occurrence, within the Simba project, a 70-15-15 joint venture between MDN (as operator), Lakota Resources of Toronto, and Jope Business Associates of Dar-es-Salaam. The prospecting licence covers 40 km2 and is located 28 kilometres north of the Tulawaka gold mine.

In September 2006, MDN drilled 39 reverse circulation ("RC") holes there for a total of 1,713 metres. The objective of the program was to follow-up the initial drill intersections reported on September 29, 2005 including particularly RAB drill hole ISRAB-21 which intersected 8m at 14.54g/t Au, with a check analysis of 13.49g/t Au from 45 to 53m within a pyrite-rich quartz vein in a shear corridor, and 5m at 14.93g/t Au, with a check analysis of 13.22g/t Au from 1 to 6m in the ferricrete.

Because of the nature of the RC drilling technique, it is not possible to accurately determine the true width and orientation of the mineralized intersections. Drill holes ISRC-27 to ISRC-44, sited on fences drilled at 50m spacing either side of ISRAB-21, as well as a twin and a scissor hole to ISRAB-21, failed to intersect the mineralized quartz vein. It was then interpreted that the vein could be hosted by a tension fracture at high angle to the main shear direction and probably sub-parallel to the initial drill fence. Two additional scissor drill holes (ISRC-49 and 50) drilled almost at right angles to the original fences successfully tested this hypothesis and intersected the gold-bearing quartz structure. The other gold intersections mostly come from granite with pyrite, similar to the mineralized granite surrounding the quartz vein in ISRC-49 and 50.

From To Length Grade Grade
Hole m m m g/t Au g/t Au
ISRC-30 44 45 1 1.76
ISRC-34 55 58 3 1.07
ISRC-35 19 22 3 2.16
29 33 4 2.06
ISRC-36 58 59 1 1.19
64 66 2 1.13
ISRC-37 01 03 2 1.11
31 33 2 1.28
ISRC-38 37 38 1 1.10
ISRC-41 18 19 1 3.11
ISRC-43 08 09 1 2.59
ISRC-48 55 59 4 3.05
ISRC-49 40 48 8 15.53 7.87
ISRC-50 43 46 3 8.23

The nuggety nature of the gold was established by repeat assays of ISRC-49. Samples were analyzed by fire assays at the Mwanza SGS laboratory (Tanzania). The rigorous program of analytical grade verification implemented by MDN included 12% control samples. The drilling was carried out under the management of Brian Lloyd, geologist, and supervised by Dominique Fournier, Ph.D., who acted as a qualified person in accordance with NI 43-101.

Results on 7 more drill holes on this licence are still pending. They aimed at following-up another 2005 intersection in reverse circulation drill hole ISRC-21 situated 900m to the west of ISRAB-21, which intersected 3m at 8.63g/t Au with check analysis of 6.95g/t Au from 40 to 43m.

Results of another 2,800-metre reverse circulation drilling program recently completed on the Viyonza gold discovery identified by MDN in October 2005 are also expected.

The drill rig has now been brought back to Isambara and follow-up to find the extent of the mineralization is underway using ISRC-49 and 50 drilling direction. The significance of the other intersections will be re-appraised following this next phase of drilling.

Resignation of Tim Williams

MDN also announces the resignation of Tim Williams, COO since November 2003, who has decided to accept a position with an international chartered accountants firm, in England.

"We are very sorry to announce the resignation of Tim Williams; his intuition, relations and skills have allowed MDN to acquire an interest in its properties in Eritrea", says Paul-A. Girard, Chairman of the Board of Directors of MDN.

MDN NORTHERN MINING is a Montreal-based Canadian exploration company that holds a 30% interest in the Tulawaka gold mine (Tanzania), a majority interest in 25 adjacent mineral licenses in Tanzania, a majority interest in three licenses in Eritrea, and other gold and base metal exploration interests in Quebec, Canada.

Contact Information

    Paul-A. Girard
    Executive Chairman
    Dominique Fournier, Ph.D.
    VP Exploration