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Mahdia Gold Corp. (CNSX:MGD) Announces Corporate Update

TORONTO, ONTARIO -- (Marketwire) -- 02/08/13 -- Mahdia Gold Corp. (CNSX:MGD) ("Mahdia" or the "Company") is pleased to announce an operational update summarizing 2012 and January, 2013.

Mahdia had a very active twelve months of activities since the Omai property was acquired in January 2012.

Milestones include: the initial receipt of the Prospecting License in January 2012; assumption of field operations; design and commencement of systematic fieldwork and construction including, the rehabilitation of dormitories, admin buildings, workshops and workspaces to support exploration and operations; and establishing a secure perimeter to allow for peaceful exploration and development operations in the area. The Company's professional security team has performed an exemplary service in establishing and maintaining control in support of the program.

The Company inherited 105,000 meters of historical drilling results from the previous operator and has been working to validate a comprehensive database of geological and geochemical results and historic prospecting and mining information. This data has substantial value and in conjunction with the existing infrastructure, represents a major accelerant to testing and development, contributing to an increase in the potential value of the Omai property.

On initial review of this data, the potential for substantial expansion of the known historical deposits at Wenot and Fennell was evident, and the phase I program was designed jointly with Mahdia's engineering partner to verify the database, confirm the potential for expansion and prepare a National Instrument 43-101 compliant resource estimate. These objectives were incorporated in the Company's diamond drilling program and a very extensive effort was undertaken to rehabilitate the historical core in the target areas. While this process requires considerable time and geological work, it represents a substantial saving relative to the cost of reproducing these intercepts with new drill-holes. A significant component of Mahdia's early investment in the project included engineering consulting, the establishment and maintenance of compliant quality assurance and quality control, and the development of a locally based technical field support network in Georgetown and Linden.

During this period, Mahdia continues to study the historical data and the new data of the property, and evaluate the targets.

The forensic core rehabilitation program was very successful in that about 80% of the 35,000 meters of deep Fennell core were rehabilitated and re-logged, and are being selectively resampled to validate that portion of the database without incurring new drilling expenditure. This has allowed the Company to redirect its drilling, to optimize high -grade targets within the Fennell stock and drill deeper to expand this very substantial mineralized body. The objective of validating this target for compliance purposes has been superseded by a focus on growth and grade optimization.

The geological fieldwork completed at Omai also identified significant superficial deposits that were documented in work by former operators, but not developed. They include lateritic and deep alluvial deposits, a significant stockpile complex which shall be tested for its gold content and economic value, and some more traditional exploration targets based on geochemical data and auger drilling results. Collectively these new targets represent a substantial addition to the exploration and development arena, with the additional advantage of low evaluation development and (if the grades meet expectations) operating costs.

The Company further recognized (through the Sasso option agreement), in its decision to act on the approximately 21,800 acres that expands the Omai property south of the Essequibo River, the need to continue growth beyond the 7,244 acres of the Omai Prospecting License. The long-term resource growth is part of the plan that will advance the Omai district from a Prospecting License to a fully matured Mining License and a major, integrated mining and processing complex that will benefit in stages from all of these targets.

The Company recognized a need to expand and enhance its management team and has taken material steps to do so. The Company has welcomed John Reynolds, Donald Gordon, John Martin, Michael Galloro, and Andre Douchane in their various capacities to assist in Mahdia's governance, growth plans and efficiencies.

In 2013 the Company will focus its efforts on:


--  Commencement of production in the Shallow Flats area high grade
    materials, through an agreement with Roraima 
--  Testing of mineralization of the stockpiled material left behind by the
    previous mine operator 
--  Completion of the prefeasibility study, followed by a feasibility study
    in 2013 
--  Establishment of a production plant for mineralized stockpile 
--  Establishment and implementation of the next phase of the exploration
    program at the Wenot and Fennell Pits 
--  National Instrument 43-101 compliant resource estimate 

Mr. Bending manages Mahdia's exploration and development programs and is the Qualified Person as defined by National Instrument 43-101. He supervised and approved the preparation of the technical information in this release.

For additional information including a photo library showing the advancement of activities at the Omai mine site please visit the Company's website at www.mahdiagold.com.

About Mahdia Gold Corp.

Mahdia is a Canadian-based gold exploration company with active gold prospects in Guyana, South America.

Forward-Looking Statements

Information set forth in this news release may involve forward-looking statements under applicable securities laws. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this document are made as of the date of this document and the Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation. Although Management believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. This news release does not constitute an offer to sell or solicitation of an offer to buy any of the securities described herein and accordingly undue reliance should not be put on such. Neither CNSX Exchange nor its Regulation Services Provider (as that term is defined in the policies of the CNSX) accepts responsibility for the adequacy or accuracy of this release.

Contacts:
Mahdia Gold Corp.
David Bending
President
(416) 214-7748
info@mahdiagold.com
www.mahdiagold.com

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