Majestic Gold Corp (MJS)

[Ed Monton]

Majestic Gold closes $1.5-million private placement

2003-10-30 17:47 ET - News Release

Mr. Rod Husband reports

BROKERED PRIVATE PLACEMENT CLOSES

Majestic Gold has closed its brokered private placement with Haywood Securities of 2.5 million units at a price of 60 cents per unit, raising gross proceeds of $1.5-million which was previously announced in Stockwatch on Sept. 29, 2003.

Each unit consists of one common share in the capital of the company and one-half of a non-transferable share purchase warrant. Each full warrant will entitle the purchaser to purchase one additional share exercisable for one year at a price of 70 cents per share with forced conversion if the shares of Majestic trade over $1.80 for more than 20 consecutive days.

The agent received a commission of 7 per cent of the gross proceeds raised, paid by $10,500 cash and 157,500 units on the same terms as the offering units. Additionally, an option was granted to the agents entitling them to purchase up to 250,000 units at the offering price and on the same terms as the offering units until Oct. 27, 2004, and is equal to 10 per cent of the offering units sold.

The shares and any shares issued upon exercise of the warrants are subject to the same hold period as the offering units and shall not trade on or before Feb. 28, 2004, under the British Columbia Securities Act and the TSX Venture Exchange policies.

The company is currently performing an initial diamond drilling program designed to expand on results generated by a government-sponsored regional program that was completed in 2000. That program resulted in the discovery of significant near-surface gold mineralization on the Ceske Brezovo concession including diamond drill hole intersections of 51.5 grams per tonne gold over 14 metres and 3.1 grams per tonne gold over 16 metres; both holes bottomed in gold-rich mineralization and have not yet been subjected to any further exploration.

WARNING: The company relies upon litigation protection for "forward-looking" statements.