Mr. James Mackie reports

MAJESTIC GOLD CORP. CLOSES PRIVATE PLACEMENT

Majestic Gold Corp. has closed its previously announced non-brokered private placement for aggregate gross proceeds of $49,234,099.98 through the issuance of 378,723,846 common shares of the company at a price of 13 cents per common share.

The company intends to use the proceeds of the private placement for strategic equity investments, acquisitions and joint venture opportunities outside of China; technical studies, due diligence, project evaluations and property investigations associated with potential transactions; advancement of development opportunities and potential project funding commitments; and working capital, corporate development activities and general corporate purposes.

No finders' fees or commissions were paid in connection with the private placement. The common shares issued under the private placement are subject to a hold period of four months and one day from the date of issuance in accordance with applicable securities laws. The private placement is subject to receipt of final acceptance of the TSX Venture Exchange.

About Majestic Gold Corp.

Majestic Gold is a low-cost junior gold producer engaged in commercial gold production in eastern Shandong province, China, with mining operations at its Songjiagou gold mines and the Mujin gold project.

We seek Safe Harbor.