Mr. David De Witt reports

MISSION GOLD TERMINATES IMPERIAL PROJECT OPTION AGREEMENT

Mission Gold Ltd., due to the deteriorating state of the capital markets for junior natural resource companies and the depressed price of gold, has terminated its option agreement with Goldcorp USA Inc. pursuant to which it had the right to acquire 100 per cent of Imperial USA Corp., a subsidiary of Goldcorp USA, which holds 100 per cent of the Imperial gold project in California, subject to a 1.5-per-cent net smelter return.