Moto Goldmines Limited
TSX : MGL
ASX : MOE
AIM : MOE

Moto Goldmines Limited

August 24, 2006 10:32 ET

Moto Goldmines Announces Significant Increase in Indicated Resources

PERTH, WESTERN AUSTRALIA--(CCNMatthews - Aug. 24, 2006) - Moto Goldmines Limited (TSX:MGL)(ASX:MOE)(AIM:MOE) is pleased to report that an updated independent resource estimate, completed by Cube Consulting Pty Ltd, has resulted in a significant increase in indicated resources on the Company's Moto Gold Project in the north east of the Democratic Republic of the Congo. Estimated resources at the Moto Gold Project are now:

- Indicated resources - 55.40 million tonnes at 2.9 g/t Au for 5.076 million ounces of gold and

- Inferred resources - 88.63 million tonnes at 3.8 g/t Au for 10.794 million ounces of gold.

Highlights of the resource estimate include:

- 35% increase in contained indicated ounces

- 27.5% increase in indicated tonnes

- 7.4% increase in indicated grade and

-A continued high conversion rate of inferred to indicated resources across all ore bodies, with Karagba and Chauffeur exceeding 100%

A further resource upgrade is planned for the fourth quarter of 2006 based upon analysis of further infill drilling results from Durba-Chauffeur-Karagba including those results released by the Company on July 28, 2006.

The infill and extension drill programme at Durba-Karagba-Chauffeur is ongoing.

Resource Estimate for Moto Gold Project Deposits

Cube Consulting have estimated the following resources at a nominal 1 g/t Au lower cutoff:



-----------------------------------------------------------------------
Moto Gold Project
Recoverable Resources greater than 1.0 g/t Au
--------------------------------------------------------------

Indicated Inferred MGL's
-------------------------------------------------------------- Earn-in
Au Au Interest
Deposit Mt Au g/t '000 oz Mt Au g/t '000 oz (%)
------------------------------------------------------------------------
Pakaka 16.13 2.7 1,414 60.0
------------------------------------------------------------------------
Gorumbwa 8.29 5.2 1,374 60.0
------------------------------------------------------------------------
Kibali 16.60 2.2 1,173 68.5
------------------------------------------------------------------------
Mengu Hill 6.26 3.5 699 0.15 2.5 12 68.5
------------------------------------------------------------------------
Mengu Village 1.28 1.8 76 68.5
------------------------------------------------------------------------
Karagba 6.23 2.6 523 21.13 3.2 2,142 60.0
------------------------------------------------------------------------
Chauffeur 11.79 3.5 1,321 28.90 5.6 5,195 60.0
------------------------------------------------------------------------
Durba 2.09 2.1 144 60.0
------------------------------------------------------------------------
Megi 3.88 2.2 270 60.0
------------------------------------------------------------------------
Marakeke 2.34 1.8 133 60.0
------------------------------------------------------------------------
Kombokolo 1.79 2.9 166 0.01 1.6 0 68.5
------------------------------------------------------------------------
Sessenge 6.68 2.5 540 0.74 2.4 58 68.5
------------------------------------------------------------------------
Ndala 0.24 4.3 33 60.0
------------------------------------------------------------------------
Pamao 5.23 2.0 337 4.26 1.9 260 60.0
------------------------------------------------------------------------
TOTAL 55.4 2.9 5,076 88.62 3.8 10,794
------------------------------------------------------------------------


Notes:

-All the mineral resource estimates undertaken by Cube have been classified and reported in accordance with The 2004 Australasian Code for Reporting of Mineral Resources and Ore Reserves (2004 JORC Code). The 2004 JORC reporting guidelines are equivalent to the guidelines adopted for the Canadian National Instrument 43-101. ?? The mineral resource estimate includes the results of an additional 2,842m of RC drilling and 16,319m of diamond drilling compared to the previous resource estimate in April 2006. The mineral resource estimates represent the inclusion of drilling results received to the end of May 2006.

- The infill drilling has facilitated an increase in grade confidence that combined with a comprehensive geological review and interpretation has allowed the movement of significant tonnages at Chauffeur from the Inferred to the Indicated category. A direct comparison of Inferred mineralized blocks to Indicated mineralized blocks at Chauffeur has demonstrated a conversion ratio exceeding 100%.

- A recoverable resource estimation methodology (Uniform Conditioning with a 5x5x2.5m SMU) has been used in place of Ordinary Kriging (on a 20x20x5m Panel).

Compared to the previous resource estimate in April 2006:

Indicated resources have increased:

- from 43.44 million tonnes at 2.7 g/t Au for 3.756 million ounces of gold;

- to 55.40 million tonnes at 2.9 g/t Au for 5.076 million ounces of gold.

Inferred resources have decreased:

- from 100.86 million tonnes at 3.8 g/t Au for 12.353 million ounces;

- to 88.63 million tonnes at 3.8 g/t Au for 10.794 million ounces of gold.

This increase in the indicated resources reflects the nature of the drilling programme that focused on infill Durba-Chauffeur-Karagba. This enables inclusion of this resource in the pre-feasibility study.

The decrease in the inferred resources results from the movement of a portion of the Chauffeur resource from inferred to indicated and a re-calculation of the Gorumbwa, Kibali, Megi, Marakeke and Ndala deposits as recoverable resources.

An independent external audit by an internationally recognized geological consulting firm has been completed with findings to be released by the end of August 2006.

Earn-in Rights

The Company, in conjunction with the privately owned company Orgaman sprl ("Orgaman") and through a number of local operating companies, has entered into seven leasing agreements and one contract of technical and financial assistance with OKIMO, the state-owned company that is the registered holder of the mineral rights to the Moto Gold Project. The Company is the operator in respect of all activities at the Moto Gold Project.

In respect of the seven leasing agreements, the Company is effectively earning a 60 per cent interest to the mineral rights in certain areas (Orgaman retains a 10 per cent interest and OKIMO has a 30 per cent non-dilutable interest) and a 68.5 per cent interest to the mineral rights in other areas (Orgaman retains an 11.5 per cent interest and OKIMO has a 20 per cent non-dilutable interest). In respect of the contract of technical and financial assistance the Company is effectively earning the right to a 60 per cent share of mineral interests.

Under the terms of the agreements, the Company is required to fund exploration through to completion of a bankable feasibility study. Details of the Company's net attributable share of the indicated and inferred resources, assuming completion of its earn-in obligations, are at appendix 1.

Cube Consulting

Cube Consulting Pty Ltd (Cube) is an independent consulting firm specialising in the provision of geological modeling, resource estimation, mine planning and information technology services. Cube have been appointed to manage the geological resource modeling and mine planning aspects of the feasibility process.

Cube was established in 1999 by a group of Australian mining industry professionals and continues to provide consulting services to a diverse group of Australian and international mining companies.

Prefeasibility / Feasibility Work

The results of the prefeasibility study are expected to be released by the end of August. Activities in relation to project feasibility and development are ongoing and the Company is working towards completion of bankable feasibility study in 2007.

Additional Notes:

Scientific or technical information in this news release has been prepared under the supervision of Greg Smith, Exploration Manager of the Company and a qualified person under National Instrument 43-101 and a member of the Australasian Institute of Mining and Metallurgy (AusIMM). Greg Smith has sufficient experience which is relevant to the style of mineralisation under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" (the JORC Code).

The Information in this report that relates to Mineral Resources is based on a resource estimate compiled by Rick Adams who is a member of the Australasian Institute of Mining and Metallurgy (AusIMM) and a qualified person under National Instrument 43-101. Rick Adams is a director of Cube Consulting Pty Ltd. Rick Adams has sufficient experience which is relevant to gold mineralisation and resource estimation to qualify as a competent Person as defined in the December 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" (the JORC Code). Rick Adams consents to the inclusion in this report of the Information, in the form and context in which it appears.

Caution Regarding Forward Looking Statements: Statements regarding the Company's plans with respect to developing the Moto Gold Project are forward-looking. There can be no assurance that any mineralisation will be proven to be economic, that anticipated metallurgical recoveries will be achieved, that future evaluation work will confirm the viability of deposits identified with the project or that future required regulatory approvals will be obtained.

Appendix 1

Resource Estimate for Moto Gold Project Deposits - Net Attributable (in accordance with AIM rules)

The Company's net attributable share of indicated and inferred resources based on the estimate by Cube Consulting (at a nominal 1 g/t Au lower cutoff) is as follows:



-------------------------------------------------------------
Gross
-------------------------------------------------------------
Deposit Indicated Inferred
-------------------------------------------------------------
Tonnes Au Tonnes Au
Mt Au g/t '000Oz Mt Au g/t '000Oz
-------------------------------------------------------------
Pakaka 16.13 2.7 1,414
Gorumbwa 8.29 5.2 1,374
Kibali 16.60 2.2 1,173
Mengu Hill 6.26 3.5 699 0.15 2.5 12
Mengu Village 1.28 1.8 76
Karagba 6.23 2.6 523 21.13 3.2 2,142
Chauffeur 11.79 3.5 1,321 28.90 5.6 5,195
Durba 2.09 2.1 144
Megi 3.88 2.2 270
Marakeke 2.34 1.8 133
Kombokolo 1.79 2.9 166
Sessenge 6.68 2.5 540 0.74 2.4 58
Ndala 0.24 4.3 33
Pamao 5.24 2.0 337 4.26 1.9 260
-------------------------------------------------------------
TOTAL 55.4 2.9 5,076 88.62 3.8 10,794
-------------------------------------------------------------
-------------------------------------------------------------


-------------------------------------------------------------
Net Attributable (note 1)
-------------------------------------------------------------
Deposit Indicated Inferred
-------------------------------------------------------------
Tonnes Au Tonnes Au
Mt Au g/t '000Oz Mt Au g/t '000Oz
-------------------------------------------------------------
Pakaka 9.68 2.7 848
Gorumbwa 4.97 5.2 824
Kibali 11.37 2.2 803
Mengu Hill 4.29 3.5 479 0.10 2.5 8
Mengu Village 0.88 1.8 52
Karagba 3.74 2.6 314 12.68 3.2 1,285
Chauffeur 7.07 3.5 793 17.34 5.6 3,117
Durba 1.25 2.1 86
Megi 2.32 2.2 162
Marakeke 1.40 1.4 80
Kombokolo 1.23 2.9 114
Sessenge 4.58 2.5 370 0.51 2.4 40
Ndala 0.14 4.3 20
Pamao 3.14 2.0 231 2.56 1.9 156
-------------------------------------------------------------
TOTAL 34.61 2.9 3,201 54.64 3.8 6,581
-------------------------------------------------------------
-------------------------------------------------------------


Note 1 - refer above for details of the Company's interests in the various deposits and discussion of earn-in rights.



Appendix 2

Glossary of Terms

"Diamond This technique involves a pipe encrusted in industrial
drilling" diamonds being used to drill through rock layers, with a
"core" of rock being left in the centre of the pipe. The
"core" of rock can be retrieved for logging and sampling.

"Indicated" That part of a Mineral Resource for which tonnage,
densities, shape, physical characteristics, grade and
mineral content can be estimated with a reasonable level
of confidence as determined under the JORC Code.

"Inferred" That part of a Mineral Resource for which tonnage, grade
and mineral content can be estimated with a low level of
confidence as determined under the JORC Code.

"JORC Code" The Australasian Code for Reporting of Mineral Resources
and Ore Reserves, prepared by the Joint Ore Reserves
Committee of the Australasian Institute of Mining and
Metallurgy, Australian Institute of Geoscientists and
Minerals Council of Australia.

"Mineral A concentration or occurrence of material of intrinsic
Resource" economic interest in or on the Earth's crust in such form,
or quality and quantity that there are reasonable prospects
"Resource" for eventual economic extraction.

"Ordinary A mathematical method that uses linear weighted
Kriging" combinations of the available data to estimate unbiased
block grades with the aim of minimizing the variance of
the error.

"RC This technique employs a dual walled string of drill rods,
drilling" with a compressed air driven percussion hammer at the end
of the drill string. The type of hammer used at Moto is
known as a "Center Sample Hammer" with a hollow center
that allows the sample to pass into the dual wall drill
pipe right at the face of the drill bit. The rock fragments
will be taken up and will pass through hollow tubing, until
the chippings and fluids reach a "cyclone." The cyclone
separates out the rock fragments from the drill medium and
presents them to a sampling device.

"Resource Individual concentrations of mineralization separated
Domains" geographically or statistically from each other.

"Uniform A mathematical method that allows the discrimination of
Condition- ore and waste at a selective mining unit size within
ing" an estimated panel of significantly larger size. In theory,
this provides a more accurate prediction of estimated
resource grade above a cut off.


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