Molycor Gold Corp.
TSX VENTURE : MOR
PINK SHEETS : MLYFF
FRANKFURT : M1V

Molycor Gold Corp.

December 01, 2010 13:54 ET

Molycor Closes Private Placement With the MineralFields Group

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 1, 2010) - Molycor Gold Corp. (TSX VENTURE:MOR)(PINK SHEETS:MLYFF)(FRANKFURT:M1V) ("Molycor" or the "Company") is pleased to announce that, further to its news release dated November 17, 2010, the Company has completed its non-brokered private placement (the "Private Placement") of 5,250,000 flow-through units (the "FT Units") at a price of $0.08 per FT Unit, for aggregate proceeds of up to $420,000. The private placement was over-subscribed.

Each FT Unit consists of one flow-through common share (a "Flow-Through Share") and one non-flow-through common share purchase warrant (a "Warrant"). Each Warrant will entitle the holder to purchase one non-flow-through common share (a "Non-Flow-Through Share") at an exercise price of $0.13 at any time and from time to time until 5 p.m. (Vancouver time) on November 30, 2012.

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.

The Company paid to Limited Market Dealer Inc. (the "Finder") a cash commission of $21,000 equal to 6% of the aggregate proceeds of the Mineralfields Group, less $3,000. In addition, the Company issued to the Finder, 350,000 non-flow-through finders warrants (the "Finders Warrants") equal to 8% of the number of FT Units subscribed for by the Mineralfields Group. Each Finder's Fee Warrant will entitle the holder to purchase one Non-Flow-Through Share at an exercise price of $0.13 until at any time and from time to time until 5 p.m. (Vancouver time) on November 30, 2012.

A further cash finder's fee totaling $2,000 was paid to Ronald Kolman which equals 10% of the aggregate proceeds.

The total of 5,250,000 Flow-Through Shares, 5,250,000 Warrants and 350,000 Finder Warrants issued pursuant to the Private Placement are subject to a hold period expiring March 31, 2011.

The proceeds of this Private Placement will be used to develop the Company's holdings in British Columbia.

"We are very pleased to be renewing this relationship with MineralFields Group," said Larry W. Reaugh, Molycor Chief Executive Officer. "This is an important milestone in the growth of Molycor and we look forward to working with MineralFields Group as we develop our holdings in BC."

About MineralFields, Pathway and First Canadian Securities®

MineralFields Group (a division of Pathway Asset Management), based in Toronto, Montreal, Vancouver and Calgary, is a mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada 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 www.mineralfields.com. First Canadian Securities®, a division of Limited Market Dealer Inc., 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, speciality and base metal exploration and development company focusing on magnesium, molybdenum and gold exploration and development in North America.

On Behalf of Management

Larry W. Reaugh
Chief Executive Officer

For all Molycor Gold Corp. investor relations needs, investors are asked to visit the Molycor Gold Corp. website at www.molycor.com.

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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