Mr. James Mackie reports

MAJESTIC ANNOUNCES STRATEGIC INVESTMENT IN GOLDSTONE RESOURCES LIMITED

Through Persistence Gold Group Ltd., Majestic Gold Corp.'s 58.75-per-cent-held subsidiary, it has entered into an investor agreement with GoldStone Resources Ltd., a company incorporated in Jersey with limited liability and listed on the Alternative Investment Market of the London Stock Exchange.

Pursuant to the investor agreement, Persistence Gold Group has agreed to acquire 351,594,899 ordinary shares of GoldStone at a price of one pence per share for total consideration of 3,515,948.99 pounds sterling (approximately $6,668,068), representing an approximately 20.96-per-cent equity interest in GoldStone following completion of the investment. In connection with the investment, Persistence Gold will have the right to nominate one representative to the board of directors of GoldStone, for so long as the Persistence Gold retains an interest of 15 per cent or more in the GoldStone's ordinary shares.

The investment represents Majestic's first strategic investment outside of China and is consistent with the company's strategy of evaluating opportunities to diversify its asset base and gain exposure to mining and exploration opportunities in additional jurisdictions. The board of directors of the company believes that GoldStone has potential for further development and that the investment provides an opportunity to expand the company's exposure to gold resources, diversify its operations, and participate in mining exploration and development in Africa.

GoldStone is a mining and exploration company focused on the Ashanti gold belt in Ghana, West Africa. GoldStone's primary assets include the Homase gold mine and the Akrokeri underground gold mine, which are situated approximately 20 kilometres along strike north of the Obuasi gold mine (a third party mine), as well as having entered into a binding MoU (memorandum of understandng) to acquire a 50-per-cent interest in a gold project in Sierra Leone, located adjacent to the Boamuhun gold mine (a third party mine).

The Homase mine is currently an operating open-pit mine exploiting the oxide portion of the deposit using heap leach processing. Based on GoldStone's public disclosure, the Homase mine has a combined measured, indicated and inferred Joint Ore Reserves Committee-compliant resource of approximately 10.6 million tonnes at an average grade of 1.77 grams per tonne gold, representing approximately 600,000 ounces of gold. Mineral resources have an effective date of Oct. 30, 2012. The qualified person responsible for the mineral resource estimate is Andrew Netherwood (AusIMM) and Simon Meadows Smith (IOM3).

The Akrokeri mine was historically operated as a high-grade underground mine and produced approximately 75,000 ounces of gold at a recovered average grade of approximately 24 g/t gold before operations ceased in 1909. The Homase and Akrokeri licences contain approximately 4.4 kilometres of identified mineralized strike length, with additional parallel gold-bearing structures identified through historical drilling. These additional targets remain underexplored, with the most recent drilling completed in 2012.

The proceeds from the investment are expected to be used by GoldStone for the further advancement of the Homase mine, including drilling below and around the Homase mine with the objective of upgrading the project's resource base and commencing a feasibility study in respect of the potential exploitation of sulphide ore.

Qualified person

Stephen Kenwood, PGeo, is a qualified person as defined by National Instrument 43-101 -- Standards of Disclosure for Mineral Projects, and has reviewed and approved the technical information contained in this news release.

About Majestic Gold Corp.

Majestic Gold is a junior gold producer engaged in commercial gold production in eastern Shandong province, China, with mining operations at its Songjiagou gold mines and the Mujin gold project.

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