Molycor Gold Corp.: Resource and Block Modeling Analysis Completed for the Tami-Mosi Magnesium Project

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 08/03/11 -- Edward Lee, President of Molycor Gold Corp. (TSX VENTURE: MOR)(PINK SHEETS: MLYFF)(FRANKFURT: M1V) ('Molycor' or the 'Company'), is pleased to report that the Company has acquired 13 new mineral claims on its 100% owned Tami-Mosi Magnesium Project located in the Schell Creek Range of White Pine County near Ely, Nevada. Wardrop, a Tetra Tech Company (Wardrop) has completed an updated block modeling and resource analysis that resulted in an estimated increase of the inferred resource to 412 million tonnes of dolomite at an average grade of 12.3% magnesium (Mg), using a 12% Mg cut-off grade, for a contained metal content of 111 billion pounds of Mg.

The initial Resource Study was carried out by N. Tribe & Associates Ltd. ('NTA') and dated May 1, 2009 using an 8% cut-off grade. The inferred resource was estimated at 236 million tonnes containing 51 billion pounds of Mg contained in dolomite at an overall average grade of 10%. The resource estimate provided by NTA in the NI43-101 report was calculated using the following parameters. The mineralization was projected 100 meters from the drill holes and does not include mineralization beyond that range. A cut-off grade of 8% Mg was used and a dilution factor of 10% at a grade of 4.89% Mg was used. This resource was projected to a depth of 200 meters based on an assumed first pass open pit configuration.

Following up on this research, Wardrop completed a Resource Estimate Analysis using surface mapping, sampling and assaying not available for the May 1, 2009 NTA report. This has added considerable higher grade material to the resource. The Resource Estimate Analysis generated by Mr. Triebel was based on the assumption that the dolomite beds are continuous through the proposed mining area. Mr. Triebel noted that the limestone and dolomite were separate based on previously completed surface mapping. His analysis includes all the information available at this time. A virtual solid was built representing the dolomite. This virtual solid was approximately 95% contained within a block model used for grade estimation. Blocks were interpolated using inverse distance squared on composites from drill holes and surface samples. The search ellipsoid was 600m in its two longest directions and 150 m in its shortest direction. Its orientation was approximately parallel to the general orientation of bedding. The virtual solid was truncated 200m below the topography. Only those blocks contained within the virtual solid were used to calculate the resource using a 12% Mg cut-off grade. The analysis shows the Inferred Resource as estimated by Wardrop to be 412 million tonnes of dolomite with an average grade of 12.3% Mg for a contained metal content of 111 billion pounds of Mg. No dilution is incorporated in the Wardrop estimate. The increased tonnage and grade are the results of the acquisition of 13 more claims as well as applying block modeling, surface sampling and using a virtual dolomite solid to estimate the resource.

About Wardrop (www.wardrop.com)

Wardrop is a multi-disciplined consulting and engineering firm that provides innovative solutions for the natural resource management, energy and infrastructure markets globally. Wardrop currently has 1,200 employees who work collaboratively throughout its North American and overseas operations.

Wardrop is part of Tetra Tech (www.tetratech.com) a leading provider of consulting, engineering, program management, construction and technical services. The combined companies have more than 12,000 employees worldwide and capabilities that span the entire project lifecycle.

About Magnesium:

Magnesium is a widely used industrial metal categorized by its high strength and light weight. The source of supply of magnesium has undergone dramatic change in recent years. Production of the metal from source has almost ceased in Canada and the United States with only one producing company in Utah remaining. During 2010 China produced 82% of the world's primary supply. The total world production is estimated at approximately 800,000 metric tonnes (2008 United States Geological Survey). This distortion of the market led to anti-dumping charges and the imposition of an import duty on foreign produced magnesium by the United States; this dependence on one North American source presents an opportunity for Molycor. The price of magnesium outside the US is currently US$3,350 a metric tonne or US$1.52 lb (Metal Pages, 2011-07-07). The metal has enjoyed a favorable price for decades and has reached over US$6,000 a metric tonne or US $2.72/lb in times of high demand.

Molycor's Goal:

The Company plans to advance the Tami-Mosi Magnesium Project, in Nevada, toward prefeasibility and feasibility studies over the next eighteen months based on Wardrop's most recent block modeling and resource estimates of 111 billion pounds of contained Magnesium.

About Molycor Gold Corp.:

Molycor is a diversified precious, specialty and base metal exploration and development company focusing on magnesium, molybdenum and gold exploration and development in North America.

Preliminary Economic Assessment Report

The Company has received the draft NI 43-101 Preliminary Economic Assessment Report from Wardrop and will be announcing the Report upon completion of the review.

The resource estimate completed May1, 2009 and associated work was prepared in compliance with requirements set out in National Instrument 43-101 by Norm Tribe, P.Eng, of NTA, Kelowna, BC.

Block modeling and the resulting analysis estimates were completed by Klaus Triebel, CPG, of Wardrop, and were prepared in compliance with requirements set out in National Instrument 43-101.

This news release was reviewed by Norm Tribe. P.Eng, a qualified person recognized under NI 43-101.

On Behalf of Management

Edward Lee, President

For all Molycor Gold Corp. investor relations needs, investors are asked to visit the Molycor Gold Corp. website at www.molycor.com.

This news release may contain certain 'Forward-Looking Statements' within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the TSX-Venture Exchange, the British Columbia Securities Commission and the US Securities and Exchange Commission.

The TSX-Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contacts:

Molycor Gold Corp.

Edward Lee

President

604-531-9639

604-531-9634 (FAX)
info@molycor.com
www.molycor.com