Moto Goldmines Limited: Quarterly Report For The Period Ended 31 December 2005

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

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Highlights

MOTO GOLD PROJECT

- Revised independent resource estimate of:

   - Indicated Resource - 34.33 million tonnes at 2.5 g/t Au for 
     2.809 million ounces of gold; and

   - Inferred Resource - 92.87 million tonnes at 2.7 g/t Au for 
     8.158 million ounces of gold.

- Feasibility work continued during the quarter, including;

   - Conceptual study indicated potential for development of 
     significant gold mine

   - Appointment of Lycopodium Engineering to undertake 
     pre-feasibility study.

- Infill and extension drilling during the quarter continued to 
  identify significant gold mineralisation. A resource upgrade is 
  planned for March 2006.

- Appointment of Dr Jeff O'Leary as a non-executive director and 
  Andrew Dinning as Chief Operating Officer.

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   DEMOCRATIC REPUBLIC OF CONGO - MOTO GOLD PROJECT

   The Company continued its activities to advance project 
feasibility and development for the Moto Gold Project in the 
north-east of the Democratic Republic of Congo during the quarter 
ended 31 December 2005. The Company employed 4 drill rigs (one RC and 
three diamond) at the Moto site, with the focus predominantly on 
infill drilling designed to upgrade the Resource from the Inferred to 
the Indicated category.

   Cube Consulting completed an updated independent resource 
estimate on November 14, 2005, and a conceptual study on November 17, 
2005. Details of both are summarised below. The Company has also 
appointed Lycopodium Engineering to manage, and various consultants 
to contribute to, the pre-feasibility study. Activities in relation 
to project feasibility and development are ongoing.

   Reports on the exploration activities during the quarter have 
previously been released on October 25, 2005 "Further significant 
results at Karagba and Pakaka" and November 7, 2005 "Exploration 
Update". The details reported in these releases have not been 
repeated in the following report, but in summary the infill and 
extension drilling completed during the quarter continued to identify 
significant gold mineralisation.

   Resource Estimate for Moto Gold Project Deposits

   In November 2005 independent consultants Cube Consulting 
estimated the following Resources at a nominal 1 /gt Au lower cutoff:

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Deposit                    Indicated                 Inferred
                -----------------------------------------------------
                 Tonnes       Au        Au     Tonnes     Au       Au
                     Mt      g/t    '000Oz         Mt    g/t   '000Oz
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Pakaka            19.47      2.4     1,509
Gorumbwa                                         8.55    6.4    1,750
Kibali                                          22.60    2.0    1,417
Mengu Hill         8.00      3.3       844       0.98    1.4       43
Mengu Village                                    1.83    1.6       91
Karagba                                         36.70    3.1    3,634
Megi                                             5.21    1.9      312
Marakeke                                         1.66    1.4       74
Kombokolo          2.08      2.3       155
Sessenge           4.78      2.0       301       0.92    2.3       67
Ndala                                            0.49    4.0       62
Pamao                                           13.93    1.6      708
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TOTAL             34.33      2.5     2,809      92.87    2.7    8,158
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   Upgrading of confidence in Resource

   Upon completion of the November 2005 Resource estimate extensive 
infill and / or extension drilling programmes were undertaken at 
Karagba / Chauffeur / Durba East, Sessenge and Mengu Hill. Results of 
these programmes are expected to be released in early February 2006. 
The infill drilling programmes were designed to upgrade the Resource 
from the Inferred to the Indicated category. A continuous infill and 
extension drilling programme is planned for the first 6 months of 
2006.

   A resource upgrade for the Karagba / Chauffeur / Durba East, 
Sessenge and Mengu Hill deposits is planned for March 2006.

   Conceptual Study

   On the basis of the results of the August 2005 Resource Estimate, 
Cube Consulting reviewed the potential for a mining operation based 
on a number of the ore bodies at the Moto Gold project. In November 
2005 Cube Consulting completed a Conceptual Study indicating that a 
gold mine supporting production of approximately 240,000 ozs of gold 
per annum could be developed at the Moto Gold project (based on 
production of 3 million ounces over 12 years). Significant study 
parameters and assumptions include:

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Average Throughput                        Mtpa                3

Feed Grade                         grams/tonne              2.7

Average Gold Production                 koz pa              240

Average strip ratio                  waste:ore              3.1

Average Recovery Rate                        %               88

Estimated Cashflows(i):

  @ gold price of 400 $/oz net     US$ Million              517

  @ gold price of 425 $/oz net     US$ Million              589

  @ gold price of 450 $/oz net     US$ Million              661

  @ gold price of 475 $/oz net     US$ Million              732

  @ gold price of 500 $/oz net     US$ Million              803

Estimated operational unit cost         US$/oz              218
                                       (rec'd)

Indicative Mine Life                     Years               12
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(i)Undiscounted 

   The above evaluations are preliminary in nature and remain 
   subject to completion of a feasibility study. The numbers 
   shown are projections, which may not reflect actual performance.

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   The conceptual study does not include capital expenditure and 
infrastructure costs. Preliminary estimates of these costs are 
currently being prepared. Due to the number and variety of ore 
bodies, extensive metallurgical test work is being undertaken to 
further quantify indicative recovery rates for each orebody and 
better define the process flow sheet.

   Pre-feasibility Work

   The Company has appointed Lycopodium Engineering Pty Ltd from 
Perth, Western Australia (WA) to manage key elements of and compile 
the pre-feasibility study. Their scope includes process flow sheet 
definition, design and costing of the process plant and 
infrastructure, management of Knight Piesold and compilation of the 
overall study. The team of consultants working with Lycopodium 
include:

   - Cube Consulting (Perth WA) - Resource Estimates and Mine Design

   - Independent Metallurgical Laboratories Pty Ltd (Perth WA) - 
Metallurgical test work

   - SGS Ghana - Environmental and Social studies

   - George Orr & Associates (Perth WA) - Geotechnical studies

   - Knight Piesold (through Lycopodium, Perth, WA) - Tailings dam 
design

   Activities in relation to project feasibility and development are 
ongoing and the Company is continuing to work towards completion of 
pre-feasibility work by mid 2006 and completion of a bankable 
feasibility study in 2007.

   CORPORATE

   During the quarter Dr Jeff O'Leary joined the Board in the 
position of Non-Executive Director. Mr Andrew Dinning was also 
appointed Chief Operating Officer. Mr Dinning has principal 
responsibility for managing operational activities including the 
feasibility process and subsequent mine development and plant 
construction and commissioning at the Moto Gold project.

   At 31 December 2005 the Company had cash at bank of approximately 
AU$24.5 million.

   Additional Notes:

   Scientific or technical information in this news release has been 
prepared under the supervision of Greg Smith, Exploration Manager of 
the Company and a qualified person under National Instrument 43-101 
and a member of the Australasian Institute of Mining and Metallurgy 
(AusIMM). Greg Smith has sufficient experience, which is relevant to 
the style of mineralisation under consideration and to the activity, 
which he is undertaking to qualify as a Competent Person as defined 
in the 2004 Edition of the "Australasian Code for Reporting of 
Exploration Results, Mineral Resources and Ore Reserves" (the JORC 
Code).

   The Information in this report that relates to Mineral Resources 
is based on a resource estimate compiled by Ted Coupland who is a 
member of the Australasian Institute of Mining and Metallurgy 
(AusIMM), Mineral Industry Consultants Association (MICA) and is a 
Chartered Professional (Geology), and a qualified person under 
National Instrument 43-101. Ted Coupland is a director of Cube 
Consulting Pty Ltd. Ted Coupland has sufficient experience which is 
relevant to gold mineralisation and resource estimation to qualify as 
a competent Person as defined in the December 2004 Edition of the 
"Australasian Code for Reporting of Exploration Results, Mineral 
Resources and Ore Reserves" (the JORC Code). Ted Coupland consents to 
the inclusion in this report of the Information, in the form and 
context in which it appears.

   Conceptual Study

   - The study was undertaken by Cube Consulting Pty Ltd. The 
objectives of this high level study were a) to provide a first pass 
indication of the potential of the resource, and b) to provide 
guidance for exploration drilling with the aim of improving the 
confidence level of the resource.

   - The assessment is preliminary in nature, and includes inferred 
mineral resources that are considered too speculative geologically to 
have the economic considerations applied to them that would enable 
them to be categorized as mineral reserves. There is no certainty 
that the preliminary assessment will be realized.

   - The study comprised open pit optimisation on 12 deposits, 
preliminary pit designs on 3 deposits (including 2 phased cutback 
designs) and a top-down whole-bench mining schedule with associated 
simple (undiscounted) cashflows. Cost parameters used in the study 
were mostly derived from average data for similar types of operations 
and no costing analyses was carried out. Metallurgical recoveries 
were based on initial test results on five of the deposits, the 
results of which were applied to resources for which no testing was 
available. No geotechnical evaluations were completed for the study 
and indicative slope angles were used.

   Caution Regarding Forward Looking Statements: Statements 
regarding the Company's plans with respect to developing the Moto 
Gold Project are forward-looking. There can be no assurance 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)