Moto Goldmines Limited

Moto Goldmines Limited

February 26, 2007 10:12 ET

Update on the Moto Gold Project

PERTH, WESTERN AUSTRALIA--(CCNMatthews - Feb. 26, 2007) - Further to the announcement of 29 January 2007, Moto Goldmines Limited ("MGL" or the "Company") (TSX:MGL)(AIM:MOE) 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").

Pending the finalization of the formation of the new Government, the Company is awaiting confirmation from the Office of the President of the DRC that OKIMO is authorised to resume its discussions with the Company with a view to formalising the detailed agreements envisaged by the protocol entered into with OKIMO on 3 November 2006 ("November 2006 Protocol"), including a consolidated lease agreement. OKIMO's Chairman of the Board of Director's has notified the previous Chief Executive Officer that the letters alleging breaches of the various agreements with OKIMO have "no legal value and (are) of no effect". The Company has nevertheless chosen to respond to the allegations of breach setting out in clear detail why it is not in breach of any of the agreements, and that certain outstanding payments will be made on the basis agreed during the course of negotiations of the November 2006 Protocol. The information available to the Company shows that the November 2006 Protocol has been approved by OKIMO's Board of Directors and its Umbrella Authorities in accordance with applicable DRC law.

The Company continues to receive considerable support from the Board of Directors of OKIMO. The Company is looking forward to the appointment of the new Chief Executive Officer following finalization of the new Government so that it can progress the negotiations of the detailed agreements envisaged by the November 2006 Protocol.

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.

ARBN 113 274 874

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