Mr. James Mackie reports

MAJESTIC'S HKEX-LISTED SUBSIDIARY PERSISTENCE COMPLETES HK$472 MILLION PRIVATE PLACEMENT

Majestic Gold Corp.'s Hong Kong Stock Exchange-listed subsidiary, Persistence Resources Group Ltd., has completed a private placement financing for gross proceeds of $472-million (H.K.) (approximately $85.2-million).

Pursuant to the placement, Persistence issued 400 million common shares at a price of $1.18 (H.K.) per share (approximately 21.3 Canadian cents per share) on the HKEX. The share price of $1.18 (H.K.) represents a discount of approximately 19.2 per cent to the closing price of $1.46 (H.K.) per share (approximately 26.2 Canadian cents per share) as quoted on the HKEX on the date of the placing agreement and a discount of approximately 18.5 per cent to the average closing price of approximately $1.448 (H.K.) per share (approximately $0.259 (Canadian) per share) as quoted on the HKEX for the past five consecutive trading days prior to the date of the placing agreement.

In connection with the private placement, Persistence will pay aggregate placing agent commissions of $5,244,719 (H.K.) (approximately $946,975 (Canadian)), representing 1.1 per cent of the gross proceeds. The commissions will be paid to Huafu International Securities Ltd., Forthright Securities Company and First Shanghai Securities Ltd. as placing agents.

The shares represent approximately 20.0 per cent of the total issued and outstanding shares of Persistence as of the date of this announcement and approximately 16.7 per cent of the enlarged total number of issued shares upon completion of the placement.

Persistence intends to use the estimated net proceeds of the placement primarily for: (i) potential gold mine project acquisitions; (ii) acceleration of its business expansion; and (iii) general working capital and other general corporate purposes.

About Majestic Gold Corp.

Majestic, a British Columbia-based company, is a low-cost junior gold producer engaged in commercial gold production at the Songjiagou gold mine in eastern Shandong province, China.

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