Metallic Ventures Gold Inc.

Metallic Ventures Gold Inc.

December 16, 2008 13:14 ET

Metallic Ventures Gold Inc. Announces Sale of Esmeralda Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 16, 2008) - Metallic Ventures Gold Inc. ("MVG") (TSX:MVG) -

MVG announces that its wholly-owned subsidiary, Metallic Ventures (U.S.) Inc. has closed an asset sales/purchase agreement with Antler Peak Gold Inc. ("Antler Peak"), a wholly-owned subsidiary of Great Basin Gold Limited for the sale of the Company's Esmeralda Project located in Mineral County, Nevada for cash proceeds of $2 million. As part of the agreement, Antler Peak will substitute its own financial assurances for the existing Project reclamation bonding in place with state and federal regulatory agencies, which will result in a $1.1 million release of restricted deposits to MVG and a $1.1 million reduction to reclamation liabilities.

The sale of the Esmeralda Project will result in the addition of $3.1 million in cash to the Company, reduce holding costs at a minimum of $0.2 million per year, eliminate the uncertainty of possible future additions to bonding and reclamation liabilities associated with the Esmeralda Project closure plans and allow the Company to focus on advancing its work plans at its Goldfield and Converse Projects.

About The Company

MVG is an Ontario incorporated exploration stage gold company with its common shares listed and posted for trading on the Toronto Stock Exchange. MVG continues to incur exploration expenditures related to the ongoing feasibility study data collection and economic modeling at its Goldfield Project and the ongoing geotechnical evaluation and metallurgical testing programs at its Converse Project. Blair Franklin Capital Partners Inc. of Toronto, Ontario continues to provide independent strategic advice to the Company.

Metallic Ventures Gold Inc. has a large Nevada gold resource base, is well funded with royalty income, has no debt and has a low burn rate with approximately $11 million in cash and short-term investments.

Cautionary Note to U.S. Investors

The United States Securities and Exchange Commission (the "SEC") permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms on our website and in our press releases, such as "measured", "indicated", and "inferred" resources, that are recognized and required by Canadian regulations, however, the SEC guidelines strictly prohibit U.S. companies from including these terms in their filings with the SEC. We advise U.S. investors that while these terms are recognized and required by Canadian regulations, the U.S. Securities and Exchange Commission do not recognize them. U.S. investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into reserves or will be economically or legally minable.

Certain statements included herein constitute "forward looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. Such forward looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Metallic Ventures Gold or of the gold mining industry to be materially different from future results, performance or achievements expressed or implied by those forward looking statements. These risks, uncertainties and other factors include, but are not limited to, changes in the worldwide price of gold or certain other commodities and currencies and the risks involved in the exploration, development and mining business. These factors are discussed in greater detail in Metallic Ventures Gold's most recent Annual Information Form and Management's Discussion and Analysis of Financial and Operating Results on file with the Canadian provincial securities regulatory authorities.

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