Moto Goldmines Limited Negotiating to Increase Interest in Moto Gold Project

Moto Goldmines Limited ("Moto")(TSX:MGL)(ASX:MOE) is 
pleased to announce that it has entered into discussions with its 
joint venture partner OKIMO with the objective of simplifying the 
contractual arrangements governing the Moto Gold Project so that 
development of the project is more streamlined and increasing Moto's 
interest in the most prospective parts of the project.

   L'Office des Mines d'Or de Kilo-Moto, a Congolese company 
("OKIMO") is a State owned mining company that is the registered 
holder of licences covering approximately 83,000 sq kms in the north 
east of the Democratic Republic of Congo ("DRC"). Subsidiaries of 
Moto are party to seven separate agreements with OKIMO in respect of 
approximately 5,375 sq kms of the licences held by OKIMO (the "Moto 
JV Area"). Under the current contractual arrangements, Moto is 
earning an interest of either 60% or 68.5% to mineral rights in the 
Moto JV Area, Orgaman sprl has an interest of either 10% or 11.5% and 
OKIMO has a 30% or 20% non-dilutable interest. Those portions of the 
Moto JV Area on which the majority of the resources have been 
identified to date are all areas in which Moto is earning a 60% 
interest.

   Moto and OKIMO have agreed to enter into discussions to simplify 
these contractual arrangements as follows:

   - The contractual arrangements between the parties would be 
simplified, with one agreement covering the entire Moto JV Area.

   - Moto would increase its interest in certain areas where the 
majority of the currently identified resources are situated. The 
revised percentage interests to be held have yet to be agreed, but it 
is envisaged OKIMO's interest would not be less than 20%.

   - OKIMO would receive consideration (represented by cash and 
shares) for the sale of such interest. The amount of the 
consideration to be paid to OKIMO has yet to be agreed.

   - Mr. Victor Kasongo, the Chief Executive Officer of OKIMO, would 
join the board of Moto.

   - The terms of a detailed shareholders agreement to govern the 
rights of the parties upon completion of a detailed feasibility study 
will be agreed.

   - Moto will return some of the JV Area to OKIMO. Any ground 
returned to OKIMO will not include ground upon which or which is 
along strike of identified gold resources or upon which Moto has 
undertaken drilling activities.

   Any agreement that is reached will be subject to the approval of 
relevant DRC authorities and any other regulatory approvals required. 
While Moto is hopeful discussions with OKIMO can be concluded during 
the second quarter of 2006, there can be no assurance regarding the 
timing of concluding the discussions, the final nature of the 
agreements or that Moto and OKIMO will successfully conclude an 
agreement.

   The discussions commenced as a result of OKIMO indicating it 
wished to renegotiate certain aspects of the existing agreements. 
While Moto has no legal obligation to do so, Moto believes that the 
proposals being discussed, if satisfactorily concluded, will improve 
the interests of and strengthen the relationship between the two 
parties, as well as simplify the ownership structure and contractual 
arrangements so that development of the project is more streamlined. 
As previously announced, Moto has commenced preparation of a 
pre-feasibility study (expected for mid-2006) and, if positive, Moto 
would moves towards completion of a detailed feasibility study during 
2007.

   Caution Regarding Forward Looking Statements: Statements 
regarding the Company's plans with respect to negotiating an increase 
in its interest in and developing the Moto Gold Project are 
forward-looking. There can be no assurance (i) regarding the timing 
of concluding the discussions, the final nature of the agreements or 
that the discussions will be concluded in a form that is satisfactory 
to the parties involved; and (ii) that any mineralisation will be 
proven to be economic, that anticipated metallurgical recoveries will 
be achieved, that future evaluation work will confirm the viability 
of deposits identified with the project or that future required 
regulatory approvals will be obtained.



   Moto Goldmines Limited (TSX:MGL) (ASX.:MOE)