Moto Goldmines Limited

Moto Goldmines Limited

April 11, 2006 08:52 ET

Moto Goldmines Limited: Status of Discussions with OKIMO

PERTH, WESTERN AUSTRALIA--(CCNMatthews - April 11, 2006) - Moto Goldmines Limited ("Moto")(TSX:MGL)(ASX:MOE)(AIM:MOE) previously advised (on March 7, 2006) that it has entered into discussions with its joint venture partner OKIMO with the objective of simplifying the contractual arrangements governing the Moto Gold Project and Moto acquiring a proportion of OKIMO's direct interest in certain parts of the project.

L'Office des Mines d'Or de Kilo-Moto, a Congolese company ("OKIMO"), is a State owned mining company that is the registered holder of licences covering the Moto Gold Project.

Moto has become aware of comments attributed to the Chief Executive Officer of OKIMO, to the effect that Moto and OKIMO are "in dispute" in respect of the current discussions.

In respect of the status of the current discussions relating to simplifying the existing contractual arrangements and Moto acquiring an additional direct interest in the project, Moto does not propose to publicly comment on the discussions until they are either finalised or terminated.

In respect of the existing contractual arrangements governing the Moto Gold Project, Moto confirms that these are valid and remain in force. Moto is not aware of any legal proceedings or similar dispute challenging Moto's interest in the Moto Gold Project. As previously advised, the relevant Ministries of the government of the DRC have instructed OKIMO not to unilaterally attempt to renegotiate or cancel any agreements with Moto. These Ministries have also been consistently supportive of Moto's involvement in the Moto Gold Project.

Moto remains committed to the joint development of the Moto Gold Project in conjunction with its partners OKIMO and Orgaman sprl. Moto believes that such development will result in significant benefits to all the stakeholders, including the State and the local community, and add to the reputation of the DRC as a major participant in the international resources sector.

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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