Majestic Gold Corp. (TSX VENTURE:MJS) ("Majestic" or the "Company") is pleased
to announce that it has arranged a non-brokered private placement of up to
98,000,000 units at $0.05 per unit, for aggregate gross proceeds of $4,900,000.
Each unit will be comprised of one common share and one common share purchase
warrant. Each warrant will entitle the holder to purchase one additional common
share in the capital of the Company for two years from the date of issue at the
price of $0.10.


Finders' fees may be payable in connection with the private placement in
accordance with the policies of the TSX Venture Exchange ("TSX-V").


The proceeds from this financing will be used to fund the Company's mineral
projects in China and for general working capital. The Company will need
additional financing to repay the previously announced loan from RAB Special
Situations (Master) Fund Limited. The proposed private placement is subject to
acceptance by the TSX-V.


On Behalf of the Board of Directors

Rod Husband, P.Geo., Director, President and CEO

This news release may contain forward-looking statements including but not
limited to comments regarding the timing and content of upcoming work programs,
geological interpretations, receipt of property titles, potential mineral
recovery processes, etc. Forward-looking statements address future events and
conditions and therefore, involve inherent risks and uncertainties. Actual
results may differ materially from those currently anticipated in such
statements.