Molycor Gold Corp.

Molycor Gold Corp.

May 07, 2007 15:03 ET

Molycor Announces $500,000 Private Placement for Crow-Rea Moly Project with MineralFields

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 7, 2007) - Molycor Gold Corp. (TSX VENTURE:MOR)(PINK SHEETS:MLYFF)(FRANKFURT:M1V) is pleased to announce that it has negotiated a non-brokered private placement (the "Private Placement") with MineralFields Group of up to 2,000,000 flow-through units (the "Units") at a price of $0.25 per Unit, for aggregate proceeds of up to $500,000. Each Unit will consist of one flow-through common share (a "Flow-Through Share") and one half of one non-flow-through common share purchase warrant (a "Warrant"). Each whole Warrant will entitle the holder to purchase one non-flow-through common share (a "Non-Flow-Through Share") for a period of two years at an exercise price of $0.30 per Non-Flow-Through Share. All of the securities issued pursuant to this offering will have a hold period expiring four months after the closing date.

The Flow-Through Shares will entitle the holders to a 100% CEE deduction, a 15% Federal tax credit for grass roots exploration and a 20% tax credit for exploration in British Columbia.

In connection with the Private Placement, the Company has agreed to pay First Canadian Securities ®, a division of Limited Market Dealer Inc., a cash finder's fee of 5% of the aggregate proceeds of the Private Placement and to issue non-flow-through finder's fee warrants (the "Finder's Fee Warrants") equal to 7% of the number of Units subscribed for. Each Finder's Fee Warrant will entitle the holder to purchase one finder's fee unit (a "Finder's Fee Unit") consisting of one Non-Flow-Through Share and one half of one Warrant (a "Finder's Fee Unit Warrant") for a price of $0.25 per Finder's Fee Unit. Each whole Finder's Fee Unit Warrant will entitle the holder to purchase one Non-Flow-Through Share for a period of two years at an exercise price of $0.30 per Non-Flow-Through Share. The Finder's Fee is payable in accordance with the policies of the TSX Venture Exchange (the "Exchange").

There will be an additional due diligence fee of 2% payable to the Finder.

The proceeds of the Private Placement will be used to fund 50% of the exploration program on the Crow-Rea Moly Project and a 50/50 joint venture with Goldrea Resources Corp.

The Private Placement is subject to Exchange approval.

About MineralFields, Pathway and First Canadian Securities ®

MineralFields Group (a division of Pathway Asset Management) is a Toronto-based mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada during most of the calendar year, as well as hard-dollar resource limited partnerships to investors throughout the world. Pathway Asset Management also specializes in the manufacturing and distribution of structured products and mutual funds. Information about MineralFields Group is available at First Canadian Securities ® is active in leading resource financings (both flow-through and hard dollar) on competitive, effective and service-friendly terms, with investors both within, and outside of, MineralFields Group.

About Molycor Gold Corp.

Molycor is a diversified precious and base metal exploration and development company focusing on molybdenum exploration in British Columbia and gold exploration in Nevada.

On Behalf of Management

Edward Lee, President and Director

This news release may contain certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the TSX-Venture Exchange, the British Columbia Securities Commission and the US Securities and Exchange Commission.

The TSX-Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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