Moto Goldmines Limited

Moto Goldmines Limited

August 18, 2005 09:11 ET

Moto Goldmines Limited-Changes To The Board Of Directors

PERTH, WESTERN AUSTRALIA--(CCNMatthews - Aug. 18, 2005) - Moto Goldmines Limited (TSX:MGL)(ASX:MOE) is pleased to announce that, in conjunction with the progression of the Company from the exploration stage to project feasibility and development, Mr Walter Kansteiner, Mr David Hodgson and Dr Jeff O'Leary will join its Board of Directors in the position of Non-Executive Directors. Mr Reg Gillard and Mr Patrick Flint have retired as directors of the Company. Mr. Flint will continue to serve as the Chief Financial Officer and Company Secretary of the Company.

The Company's Chairman, Sir Sam Jonah, said the Board recognizes the importance of advancing the project through to completion of a feasibility study as quickly as possible, and believes the experience, expertise and commitment of the new appointments will greatly assist the Company in achieving this goal.

"Mr Kansteiner's considerable experience with business in Africa and his contacts within African governments, in particular within the Democratic Republic of Congo, will prove invaluable to the development of Moto Goldmines Limited" said Sir Sam.

A founding Principal of The Scowcroft Group, an international business advisory firm, Walter Kansteiner has over twenty years experience with African and emerging market business issues. Mr. Kansteiner has advised corporations on a wide range of mergers, acquisitions, and privatizations throughout Africa. Transactions that he has been involved with include telecommunications, forestry, mining, financial services, healthcare, and aviation services. Mr. Kansteiner advised the buy side on the privatization of Telkom South Africa, one of the largest privatizations in Africa.

Mr. Kansteiner recently served three years as U.S. Assistant Secretary of State for African Affairs. In this capacity, he was responsible for U.S. foreign policy in Africa. He was also the U.S. President's personal representative to the G8 Africa Process and has served in the U.S. government as the Director of African Affairs on the National Security Council staff. He also served as the Africa specialist on the Secretary of State's Policy Planning Staff, and with the Department of Defense as a member of the strategic minerals task force. He holds graduate degrees in international economics and ethics. He is a member of the Council on Foreign Relations, chairs the Africa Policy Advisory Panel (a congressionally mandated advisory group), and serves on various private corporation boards in the U.S. and Africa.

"The Company is also fortunate to have appointed Mr David Hodgson to the Board" Sir Sam said. "Mr Hodgson is well known and highly respected throughout the gold mining industry. He has extensive operational experience, and his ability to take advanced exploration projects into production will be very important for Moto Goldmines".

Mr Hodgson was employed by the AngloAmerican and DeBeers group of companies for over 30 years, and from November 2001 until his retirement in April 2005 he was Chief Operating Officer of AngloGold Ashanti responsible for twenty two operations in eleven countries producing over 6 million ounces of gold per annum. Mr Hodgson has a BSc in Civil Engineering from the University of Witwatersrand in South Africa, a BSc Mining (Honours) Royal School of Mines in London, and B Comm (majors in Economics and Business Economics) from UNISA in South Africa.

"The appointment of Dr Jeff O'Leary to the board will provide the project financing experience that complements the political experience of Mr Kansteiner and the operational experience of Mr Hodgson", Sir Sam said.

Dr Jeff O'Leary has a BSc in Mining Geology from the Royal School of Mines and a Ph.D. in Geostatistics from the same institution. He is a Fellow of the Institution of Mining & Metallurgy and a Chartered Engineer. Dr O'Leary joined the HSBC group in 1984 and until his retirement in 2005 was involved in a wide variety of project financing, equity and M&A transactions, including the first debt/equity swap in the mining industry which was used to finance the start-up operations at Antofagasta's Los Pelambres mine. Before joining the HSBC group, Dr O'Leary worked on many projects and mining operations world-wide, including as the Chief Geologist at Stelco's Wabush operations, and as Chief Mine Geologist and Geostatistician for Rio-Tinto.

In conjunction with these appointments it is proposed that, subject to shareholder and regulatory approval, each of Mr Kansteiner, Mr Hodgson and Dr O'Leary be issued with 200,000 options to acquire Common Shares of the Company, exercisable at C$2.70 each within 6 years of issue. Further details in respect of the terms and conditions of the options will be included in the information circular that will be sent to shareholders in connection with the issue of the options.

Sir Sam also thanked Mr Gillard for his significant contribution as Chairman of the Company for the last four years.

In accordance with the Company's articles of association, Mr Kansteiner and Mr Hodgson will join the board immediately, with Dr O'Leary to be appointed subject to shareholder approval at the general meeting of shareholders to be held in late September 2005.

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