Majestic Gold Corp. Announces Private Placement

Vancouver, British Columbia (FSCwire) - Majestic Gold Corp. (“Majestic” or the “Company”) (TSX.V: MJS, FSE: A0BK1D) announces that it is proposing to sell by way of a non-brokered private placement up to 66.7 million common shares (the “Offering”) at a price of C$0.15 per common share for gross proceeds of up to C$10,000,000 (the “Offering”).

Currently focused solely in China, Majestic is a British Columbia based company engaged in commercial gold production at the Songjiagou Gold Mine in eastern Shandong Province, China.  Majestic holds a 70.5% interest in the Songjiagou Mine through a Chinese subsidiary.

All securities issued pursuant to the Offering will be subject to a four-month hold period from the closing date.  The proceeds from the Offering will be used for general working capital, to advance the Company’s projects, and to fund possible acquisitions.  The Company also wishes to explore direct financing of its Chinese subsidiary through an Asian Market facility, with a possible separate listing of the Subsidiary’s shares on an Asian exchange.

The Company has agreed to pay a Finder’s Fee in respect of the Offering to one or more arm’s length parties, equivalent to 5% of the private placement proceeds, payable in shares issued on the same terms as the Offering. The private placement is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSXV.

Additional information on the Company and its projects is available at www.sedar.com and on the Company’s website at www.majesticgold.com.

For further information, please contact:

Stephen Kenwood, P. Geo., President, CEO & Director
Telephone: (604) 560-9060

Email: info@majesticgold.com

Website www.majesticgold.com       

Cautionary Notes

Certain statements contained herein may constitute forward €looking statements and are made pursuant to the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995 and Canadian securities laws. Forward €looking statements are statements which relate to future events. Such statements include estimates, forecasts and statements as to management's expectations with respect to, among other things, business and financial prospects, financial multiples and accretion estimates, future trends, plans, strategies, objectives and expectations, including with respect to production, exploration drilling, reserves and resources, exploitation activities and events or future operations. Information inferred from the interpretation of drilling results and information concerning mineral resource estimates may also be deemed to be forward-looking statements, as it constitutes a prediction of what might be found to be present when, and if, a project is actually developed.

In some cases, you can identify forward €looking statements by terminology such as "may", "should", "expects", "plans, "anticipates", believes", "estimates", "predicts", "potential", or "continue" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, level of activity, performance or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward €looking statements.

While these forward €looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggestions herein. Except as required by applicable law, Majestic Gold does not intend to update any forward €looking statements to conform these statements to actual results

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