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

Moto Goldmines Limited

March 27, 2006 08:45 ET

Moto Goldmines Limited: Issue of Stock Options to Management and Staff

PERTH, WESTERN AUSTRALIA--(CCNMatthews - March 27, 2006) -

NOT FOR RELEASE IN THE UNITED STATES OR THROUGH A U.S. NEWSWIRE SERVICE

Moto Goldmines Limited (TSX:MGL)(ASX:MOE)(AIM:MOE) advises it proposes to issue a total of 1.7 million stock options to management and staff pursuant to the Moto Goldmines Limited Stock Option Plan. The purpose of the issue is to ensure the Company retains and motivates its management and staff by enabling them to participate in and benefit from the Company's growth.

Details of the proposed issue are as follows:

- To Mr Klaus Eckhof, President and CEO - 750,000 stock options. These options will be exercisable at C$7.65 each. The stock options will vest in two tranches - 50% on the date of issue and 50% from 12 months from the date of issue. The stock options will expire 6 years from the date of issue. The issue is subject to shareholder approval. Mr Eckhof last received an allocation of stock options in November 2003.

- To management and staff - a total of 600,000 stock options. These options will be exercisable at C$7.65 each. The stock options will vest in two tranches - 50% on the date of issue and 50% from 12 months from the date of issue. The stock options will expire 6 years from the date of issue.

- To management and staff - a total of 200,000 stock options. These options will be exercisable at C$7.65 each. The stock options will vest upon successful completion of the current negotiations with the Company's joint venture partner, OKIMO. The stock options will expire 3 years from the date of issue.

- To management and staff - a total of 150,000 stock options. These options will be exercisable at C$7.65 each. The stock options will vest 24 months from the date of issue. The stock options will expire 5 years from the date of issue.

Following the admission of the Company to AIM on March 24, 2006, the Company will also issue to RFC Corporate Finance Ltd, the Company's AIM nominated advisor, subject to regulatory approval, 500,000 warrants, exercisable at C$7.65 and expiring four years from date of issue.

Caution Regarding Forward Looking Statements: Statements regarding the Company's plans with respect to negotiating an increase in its interest in and developing the Moto Gold Project are forward-looking. There can be no assurance (i) regarding the timing of concluding the discussions, the final nature of the agreements or that the discussions will be concluded in a form that is satisfactory to the parties involved; and (ii) 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.

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