Mr. Quentin Yarie of MacDonald reports

MACDONALD MINES ANNOUNCES ARRANGEMENT TO CONTINUE EXPLORATION OF ITS VMS PROPERTIES

MacDonald Mines Exploration Ltd. has signed a definitive agreement with Noront Resources Ltd., subject to the approval of the TSX Venture Exchange, in which Noront will acquire a 75-per-cent interest in all of BMK's properties in the Ring of Fire district.

The properties principally consist of two separate blocks of claims: the Butler property (77 claim units) and the Sanderson property (70 claim units). The Butler property covers a very prolific belt of felsic volcanic rocks, which hosts four known zinc-copper-rich volcanogenic massive sulphide (VMS) occurrences. The Sanderson property covers a large ferro-gabbro intrusion (the Big Mac intrusion) and possible footwall ultramafic intrusion similar in scale to the Black Thor intrusion and which is prospective for nickel-copper and chromite deposits.

Noront will issue $750,000 of its common shares to MacDonald Mines to earn its 75-per-cent interest in the properties. MacDonald Mines will have a 25-per-cent carried interest until the issuance of a National Instrument 43-101 resource on one of the properties, at which time it will have the option to convert the carried interest into a 1-per-cent net smelter return royalty. If MacDonald Mines does not elect to exercise its conversion right, Noront can elect to buy back MacDonald's 25-per-cent interest for $3-million, payable in cash or shares. If neither the conversion right nor the Buyback right is exercised, a joint venture arrangement will be formed to develop the properties.

MacDonald's president and chief executive officer, Quentin Yarie, commented: "It's been a pleasure to do business with Noront. This transaction will enable MacDonald Mines to pursue its technical and material interests in the Ring of Fire and allow the company to refocus its efforts in the search for other exploration properties of interest."

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