Moto Goldmines Limited

Moto Goldmines Limited

November 08, 2006 08:17 ET

Partners Agree on Development Agreement for Moto Gold Project

PERTH, WESTERN AUSTRALIA--(CCNMatthews - Nov. 8, 2006) - Moto Goldmines Limited ("MGL")(TSX:MGL)(AIM:MOE) is pleased to advise that L'Office des Mines d'or de Kilo-Moto ("OKIMO"), Orgaman sprl ("Orgaman") and MGL have reached agreement to enter into a simplified contractual arrangement that will govern the development of and future production activities at the Moto Gold Project in the north east of the Democratic Republic of Congo ("DRC").

OKIMO is a Congolese State owned mining company that is the registered holder of licences covering approximately 83,000 sq kms in the north east of the DRC. Orgaman is a privately owned Congolese company. MGL is a Canadian incorporated company listed on the Toronto Stock Exchange and London's AIM market.

The principal terms of the simplified contractual arrangement will include:

- The interests of the partners to be OKIMO 30% (non-dilutable), MGL 60% and Orgaman 10%.

- The contractual arrangements between the parties will be simplified, with one agreement covering the area the subject of the joint venture (which will cover approximately 2,350 sq kms, as shown on attached figure 1).

- MGL will pay OKIMO US$5 million, and monthly rent of US$350,000 until the commencement of production.

- OKIMO currently owes Orgaman approximately US$21 million. MGL has agreed to purchase this debt from Orgaman on terms to be negotiated in a tripartite agreement between MGL, Okimo and Orgaman.

The detailed agreement setting out the terms of the contractual arrangement is currently being prepared. Further details in respect of this detailed agreement will be provided upon completion.

Moto wishes to thank OKIMO for its efforts to date in working towards the development agreement and wishes to thank the Government of the DRC for its ongoing support.

The parties look forward to working together and with all stakeholders to successfully develop the Moto Gold Project.

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.

For a map of the Moto Gold Project (Revised joint venture project area), please click on the link below:

ARBN 113 274 874

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