Moto Goldmines Limited

Moto Goldmines Limited

July 12, 2007 09:06 ET

Moto Goldmines Limited-Update on DRC Commission Review

PERTH, WESTERN AUSTRALIA--(Marketwire - July 12, 2007) - As previously announced (see Moto Goldmines Limited ("Moto" or the "Company") (TSX:MGL)(AIM:MOE) November 8, 2006 news release), Moto and L'Office des Mines d'Or de Kilo-Moto ("OKIMO"), a Congolese para-statal entity have entered into a simplified contractual arrangement (the "November 2006 Protocol") to govern the development of and future production activities at the Moto Gold Project ("the Project").

As previously announced (see Moto's April 30, 2007 news release), a Commission has been appointed under the authority of the Minster of Mines of the Democratic Republic of Congo to review various mining agreements entered into by the Congolese government, including agreements entered into by OKIMO with Moto's Congolese subsidiaries.

The Commission has commenced its work and it has reviewed the OKIMO contracts. The Commission has had discussions with OKIMO and Moto has also made an oral presentation to the Commission.

Whilst the Board of Directors of Moto is confident that the arrangements with OKIMO are fair to both parties and that the terms of the November 2006 Protocol should be confirmed, the Board remains concerned as to the timing for the formal conclusion of the process. Moto is pressing for a formal announcement of both a timetable for conclusion of the review and for publication of the results.

Nominated adviser for the purposes of AIM: RFC Corporate Finance Ltd Contact: Stephen Allen.

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Caution Regarding Forward Looking Statements: Statements regarding MGL'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 final nature of the detailed agreements or that the detailed agreements 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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