502 — 535 Thurlow Street
= — Maj estic Vancouver, B.C. CANADA V6E 3L2 Gold Corp. /? Telephone: 604-681-4653 Facsimile: 604-568-4902 Email: [email protected]
February 1, 2013 TSX.V: MJS, FSE: AOBK1D
Vancouver, British Columbia - Majestic Gold Corp. (TSX.V: MJS, FSE: AOBK1D) (“Majestic” or the “Company”) is pleased to announce the appointment of Mr. Gengshu Miao to the Company’s Board of Directors.
Mr. Miao is a senior economist who spent his entire career in the mining and investment sectors in China. He has held a number of senior positions in the Chinese mining industry, including President of China National Metals and Minerals Import and Export Corporation (now China Minmetals Corp.) from September 1997 through December 2004. China Minmetals is an international metals and mining company with a business scope covering 26 nations and regions worldwide. It employs 17,700 employees and controls 9 listed companies with total assets of RMB 242.1 Billion (C$38 Billion). It ranks 169" among the Fortune Global 500 and 4" among metal companies (see www.minmetals.com). From May 1990 to September 1997 Mr.
Miao served as Vice-Director of the Shanghai Foreign Economic and Trade Commission. Prior to that, he held several senior management positions at Shanghai Metals and Minerals Import and Export Corporation (1966 to 1990).
Mr. Miao also served as a member of The National Committee of the Chinese People’s Political Consultative Conference, a political advisory body that typically meets annually to make important national level political decisions. He was also a Chairman of Sinotrans & CSC Holdings Co. Ltd. From 2005 to 2011, Sinotrans was engaged in the integrated logistics, shipping and ship building businesses in China (see www.sinotransship.com). Mr. Miao is currently the President of the China Council for International Investment Promotion (“CCIIP”), a position he has held since 2006. CCIIP is a national organization responsible for promoting China’s inward and outward investment in a manner which is in line with China’s economic strategies. CCIIP reports directly to the Ministry of Commerce (see www.cciip.org.ch).
“We are extremely honoured to have Mr. Miao join Majestic” said Rod Husband, President. “His participation in the Company is a confirmation of the Company’s recognition in China. Mr. Miao will be actively assisting management in the pursuit of Company initiatives in China and Hong Kong, including dealings with the Chinese Government on permitting issues, merger and acquisition opportunities, potential financing for such opportunities within Asia and sponsorship for a potential application for listing on the Hong Kong Stock Exchange.” For those services the Company will be compensating Mr. Miao C$10,000 per month. Mr. Miao will also receive an option grant when the Company next grants incentive stock options.
The Company’s Board of Directors will now consist of Mr. Miao, Rod Husband, P. Geo, President and Chief Executive Officer, Mike Hibbitts, P. Geo, Rudy Brauer, Gurm Sangha and Shaohui Chen. Mr. Miao’s appointment remains subject to acceptance by the TSX Venture Exchange. Terry King has stepped down from the Board to create a vacancy for the appointment of Mr. Miao, but will continue as the Company's corporate legal counsel. Paul Reynolds, P. Geo, will continue as the Company’s Chief Operating Officer and Tom Needham will continue as the Company’s Chief Financial Officer. Messrs. Husband, Hibbitts, Brauer and
Chen comprise the Company's Audit Committee, and Messrs. Hibbitts, Brauer and Sangha comprise the Company’s Compensation Committee.
Song Jiagou Gold Mine — Production Results
Majestic is also pleased to announce that it has filed its audited financial statements for the year ended September 30, 2012. Highlights of the fourth quarter and of the current fiscal year are listed below. To review details of the financial statements and Management's Discussion & Analysis for the financial year ended September 30, 2012, please visit the Company's website at www.majesticgold.net or go to www.sedar.com. All dollar figures are in United States dollars unless otherwise indicated.
2012 Fourth Quarter Highlights
e Record gold revenue of $13.6 million
- Gold production of 4,849 ounces"e Gold sales of 8,204 ounces
2012 Highlights
e Revenue increased by 197% to $31,670,269 in 2012 from $10,651,076 in 2011
e Gold production from the Song Jiagou gold mine increased by 119% from 8,671 ounces
in 2011 to 18,969 ounces in 2012
e Gold sales from the Song Jiagou gold mine increased by 152% from 7,398 ounces in
2011 to 18,607 ounces in 2012
Corporate Review and Update
Majestic is also pleased to provide the following review and to outline management's plans for 2013.
Milestones Achieved at Song Jiagou Gold Mine
Majestic reviews the following significant milestones in the development of the Song Jiagou Gold Mine, located near Yantai, in Shandong Province of China, since February 2010, when it negotiated an agreement for its subsidiary to acquire 100% ownership of Yantai Zhongia Mining Enterprise (“JVCo’ or “Zhongia’), which in turn owns the Mine.
e April, 2010 — Majestic announced an updated NI 43-101 compliant resource estimate for the Song Jiagou property (24.9 million tonnes @ 1.25g/t) [1,002,694 oz Au] indicated and 28.1 million tonnes @1.883 g/t [1,703,174 oz Au] inferred), which represented a 138% increase in tonnage and a 112% increase in contained gold from the 2006 reserve estimate (both prepared by Wardrop Engineering Inc.);
e August, 2010 — Majestic Yantai completed its acquisition of JVCo, giving Majestic a 94% indirect ownership interest in JVCo, and JVCo acquired the Mining Permit for Song Jiagou;
- 1. The difference between the number of actual gold produced ounces vs. the number reported in the financial
statements is due to the International Financial Reporting Standards where smelting and refining charges are not considered expenses, but are applied to reduce production