Moto Goldmines Limited

Moto Goldmines Limited

April 30, 2007 08:24 ET

Moto Goldmines Limited-Update on the Moto Gold Project

PERTH, WESTERN AUSTRALIA--(CCNMatthews - April 30, 2007) - Further to the announcement of 26 February 2007, Moto Goldmines Limited (TSX:MGL)(AIM:MOE) ('MGL' or the 'Company') would like to update shareholders on the events relating to the Moto Gold Project in the north east of the Democratic Republic of Congo ('DRC').

MGL has been working closely with OKIMO Board of Directors and with various bodies for confirmation that OKIMO is authorised to resume its discussions with the Company with a view to formalising the terms agreed under the protocol entered into with OKIMO on 3 November 2006 ('November 2006 Protocol') and to formalise the withdrawal of the several allegations of breach of various agreements. As part of this process certain outstanding payments have been made to OKIMO on the basis agreed in the November 2006 Protocol and the Company has responded in detail to the allegations of breach setting out in clear detail why there is no breach of any of the agreements. No notice of termination was issued by OKIMO following the expiry of the 60 day cure period last month in relation to three of the agreements with OKIMO, nor following the 90 day cure period which expired on April 26 2007 in relation to the other agreement covered by the notices.

MGL has recently obtained a copy of the formal legal notice under which it understands that a Commission has been appointed under the authority of the Minister of Mines to review various mining agreements entered into by the DRC Government, or state bodies such as OKIMO, within a period prior to mid July 2007. Whilst MGL has not formally been notified that its contracts with OKIMO will fall within the ambit of the review, MGL is aware of news stories circulating with statements from the Deputy Minister of Mines to the effect that some or all of its contracts will be reviewed, along with 60 other mining agreements starting on May 15, with a decision expected after mid July 2007.

Whilst MGL is also aware that the Deputy Minister of Mines was quoted recently as having said that the period for curing of breaches in relation to the MGL agreements expired on April 26 2007 without MGL having fulfilled its commitments, MGL wishes to re-iterate that this statement has been made without foundation, and to point out that the OKIMO Board of Directors and relevant government ministries have been made fully aware of the work carried out by MGL and its partners in compliance with its contractual obligations. The MGL Board remains confident that any review process will confirm the validity and fairness of its recently negotiated November 2006 Protocol.

In the meantime, whilst MGL has not yet received formal confirmation, MGL's understanding is that OKIMO will be restricted from progressing matters, including the withdrawal of its allegations of breaches, until the various agreements have been reviewed by the Commission. MGL, along with the other foreign investors affected by the review, is seeking further clarity with respect to the timing and procedures for the review.

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

Company website:

Additional Notes:

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 forwardlooking. 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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