Mr. Jack Campbell reports

MEXICAN GOLD SIGNS DEFINITIVE AGREEMENT TO ACQUIRE TATATILA PROJECT IN MEXICO

Mexican Gold Mining Corp. and its subsidiary, Roca Verde Exploracion de Mexico S.A. de C.V., have entered into a mining concessions assignment agreement with Chesapeake Gold Corp. and its subsidiaries Minerales El Prado, S.A. de C.V. (MEP) and Chesapeake Mexico S.A. de C.V. Pursuant to the assignment agreement, the company shall acquire 100 per cent of the title and interest in and to certain mineral titles, and the rights derived therefrom, covering an aggregate of 3,824.3585 hectares known as the Tatatila project in Veracruz state, Mexico.

The Tatatila concessions surround Mexican Gold's Las Minas project. Several skarn prospects, including possible extensions of the Las Minas existing resource, have been discovered on the Tatatila project by Chesapeake.

In exchange for the interest, the company shall issue Chesapeake an aggregate of 4,451,361 common shares of the company, each issued at a deemed value of five cents for an aggregate deemed value of $222,568. Once issued, the consideration shares will represent 14.99 per cent of the total issued and outstanding common shares of the company. As further consideration for the interest, the company shall grant to Chesapeake Mexico a net smelter returns royalty in an amount equivalent to 1.5 per cent. The company shall have a buyback option on the royalty that provides Roca Verde with the right to purchase 0.5 per cent of the royalty from Chesapeake Mexico for $500,000 (U.S.) during the 10 years following the date of execution of the assignment agreement, which would reduce the royalty to 1 per cent.

All consideration shares will be subject to a statutory hold period of four months from the date of issuance in accordance with applicable Canadian securities legislation. In addition, the consideration shares will be subject to further lock-up restrictions such that on the one-year anniversary of the date of issuance and every six months thereafter, 25 per cent of the consideration shares shall be released from the lock-up such that all consideration shares shall be released from lock-up 2.5 years from the date of issuance.

Completion of the transaction is subject to acceptance by the TSX Venture Exchange, as well as customary closing conditions for a transaction of this kind.

About Mexican Gold Mining Corp.

Mexican Gold is a Canadian-based mineral exploration and development company committed to building long-term value through continuing discoveries and strategic acquisitions of prospective precious metals and copper projects in the Americas. Mexican Gold is exploring and advancing the Las Minas project, which is located in the core of the Las Minas mining district in Veracruz state, Mexico, and host to one of the newest, underexplored skarn systems known in Mexico.

We seek Safe Harbor.