MacDonald Mines Readies Drill Program on Butler Property in

MacDonald Mines Readies Drill Program on Butler Property in 'Ring of
Fire,' James Bay; Provides Background on Current Mining Exploration
TORONTO, ONTARIO -- (Marketwire) -- 01/09/13 -- MacDonald Mines
Exploration Ltd. (TSX VENTURE:BMK) ('MacDonald' or 'the Company')
provides a mining industry update and an outline of its drill program
scheduled for early 2013 to advance its potential VMS discovery at
the highly prospective Butler 3 location (see Figure 3). The Butler
property is located 36 kilometres west of Cliffs Natural Resources
('Cliffs') Big Daddy Chromite deposit (Click here for map).  
Kirk McKinnon, President and CEO of MacDonald Mines comments, "As we
enter 2013, MacDonald Mines believes it is important to provide a
current backdrop for junior mining exploration companies. We find it
extremely ironic that both the Prime Minister and the Ontario Premier
have outlined natural resources as a prime catalyst for growth in the
country and in the province of Ontario respectively. Specifically,
Premier Dalton McGuinty outlined the James Bay Lowlands and Natural
Resources as a prime catalyst for growth within the province. With
this as a backdrop, we wonder why large trading institutions are
allowed to impact junior mining stocks with high frequency trading
(as profiled in the Financial Post, October 10, 2012 and the
Huffington Post) and also receive trading credits from the TSX in
return for placing bids. We are aware high frequency trading is
active in the United States but has been banned in some
jurisdictions. It has less impact in the United States because of the
sheer critical mass in the number of stocks and the number of shares
in their trading jurisdictions. Compounding this, large Canadian
national banks have certainly discouraged, and all but disallowed,
any trading in junior mining stocks. This makes it extremely
difficult for their clients to even consider these stocks as part of
their overall portfolio or as opportunities for making money. We
realize that exploration stocks are high risk and do require some
expertise and insight on the part of shareholders but they can also
play a role in a balanced portfolio where it constitutes a small
percentage of the total investment.  
"So what is happening to junior exploration companies? In c
form, financings are becoming increasingly difficult to arrange, the
stocks are at much lower prices versus historical levels; mostly
because credible information and exploration success is not
resonating and consequently the junior resource stocks have little or
no resulting upward movement. The consequence of this is that much
needed financings for exploration activity are now being transacted
at historical low prices, creating an environment of super-dilution
and a growing lack of interest for investment in this sector. The
result: investors are moving away to similar types of investment
opportunities in the high-tech and bio-tech industries. 
"There are dire predictions that over half of the junior mining
companies will disappear within the next few years (see articles from
mining industry analysts and writers Brent Cook and John Kaiser)
MacDonald is not sure whether our political leaders realize or care
that the disappearance of such a large amount of these companies will
constitute major layoffs in personnel and the country will likely
lose key exploration scientists such as geologists and geophysicists
whose experience, as well as the ongoing opportunity for experience,
will be gone forever. Equally important, Canada will lose a
significant portion of an industry whose participants today are
recognized as the world's best.  
"We have seen and heard comments from both the OSC and IROC. These
have been bolstered by a number of newspaper articles and they all
allude to or say one thing - the playing field is not level and the
large and wealthy have a decided edge. We are seeking to nurture a
healthy equitable business environment for all potential
shareholders, not one that favors a chosen few.  
"Most discoveries come about through small exploration companies as
they are more nimble, and focus solely on discovery. If they
disappear, so will this focus. So here is the question: How can a
business sector that is being this decimated be the prime driver for
growth in Canada and the province of Ontario? It won't be and this
sought after exploration success will significantly diminish. We
could go on at great length but the solutions to arrest this problem
could be quick and relatively easy:  
"1. Stop the high frequency trading, 
"2. Do not allow allocation for bid credits,  
"3. Allow easier access for bank customers to buy a small portion of
their portfolio in junior expl
oration stocks,  
"4. Mandate that the banks have their analysts look at these smaller
companies with the objective of grading and rating them and not just
a singular focus on the large, mature mining deals. This would enable
clients and potential investors to better evaluate stocks, companies
and projects in the junior mining sector for consideration as part of
their portfolios. 
"The Federal Government could look at increasing flow-through tax
relief, which today is an excellent stimulant for exploration, to
bring more focus back to this important exploration sector. We should
also look at disallowing short selling for all stocks less than one
dollar. It is important that investors be made aware and have some
understanding of what companies such as MacDonald Mines are facing as
we strive continue to develop our projects. Hopefully these comments
will resonate, for they are indeed relative to the growth of the
country and the province of Ontario. 
"Exploration is difficult, especially in an economic climate such as
this, and requires a high degree of tenacity. MacDonald is fortunate
that it has assembled, over the years, an ever-growing compliment of
exploration scientists with a management team focused on success. We
are extremely grateful that we have continued to be funded by people
who understand our dedication and focus on the prize. We are well
financed for the next round of exploration and we are counseled by
some of the brightest minds in this sector and have highly
professional, seasoned exploration geologists leading all facets of
the direct exploration process. It is not good luck that brings
exploration success - it is good targets selected with quality data
that is managed by highly experienced, insightful exploration
scientists and geologists who understand how to continue to move a
project forward in spite of the challenges that are inherent with
looking for these large and worthy prizes.  
"MacDonald is now set to enter a new phase of exploration in 2013.
Over the past eight years, we have tenaciously focused on making an
exploration discovery in the James Bay 'Ring of Fire' region. Most
exploration scientists believe there are great resources to be found
in this very challenging environment. This shouldn't be surprising as
all of the 'low hanging fruit,' as relates to exploration success,
has likely been realized but on the other side the potential rewards
are huge." 
Returning to James Bay with Strength of Drilling Data and Increased
Exploration Knowledge 
MacDonald has painstakingly, with some setbacks, acquired what we now
believe to be the necessary amount of exploration knowledge that will
allow for the kind of success we strive for. Our exploration goal is
delineating a Kid Creek-type of target. Kidd Creek is one of the
world's largest Cu-Zn VMS deposits, and it is the Company's belief
that success is near at hand for the following reasons: 
Similar Geologic Setting to Kidd Creek 
The Butler Property has similar geological conditions that existed
for the formation of Kidd Creek-type mineralization. The Butler 3
geological sequence consists of a slightly overturned east-facing
assemblage of predominantly felsic volcanic strata, underpinned by a
thick sequence of mafic and ultramafic strata, and a major
synvolcanic ultramafic intrusive complex. This is the same geological
setting identified at the Kidd Creek deposit.  
At Butler 3 (See figure 3), MacDonald has observed the following
similarities to the Kidd Creek Deposit: 

--  A large mafic/ultramafic sub volcanic heat source 
--  Submarine felsic volcaniclastic strata 

Additional Characteristics of a Large VMS System Present 

--  Intense hydrothermal alteration forming a "feeder" system to Zn-Cu-Ag
    mineralization: in particular, Mn-rich carbonate and an extensive zone
    of anthophyllite, cordierite-biotite-muscovite-staurolite alterations
    all increase in strength to the east 
--  A large copper-rich stringer system, overlain by multiple bands of
    stratiform Zn-Ag mineralization observed in the nearest drill hole, is
    remarkably similar in form to VMS deposits in both the Sturgeon Lake
    district and the Chisel Basin portion of the Snow Lake camp 

To view Figure 1, please visit the following link: 
The geophysical signatures are consistent with the mineralization
already discovered on Butler 3 - with the exception that the
footprint to the east and below hole BP12-11 (see figure 2) is much
larger, including:  

--  A gravity anomaly of greater size and density than drilled historically
    (see figure 1) 
--  The magnetic signature is consistent with that observed over the known
    mineralization at Butler 3 
--  EM conductors are coincident with the gravity anomaly 

Cautionary statement: There is no certainty that further exploration
will lead to the discovery or development of a mineral deposit the
size or nature of Kidd Creek. 
To view Figure 2, please visit the following link: 
The next phase of drilling will focus on previously untested areas
adjacent to the new d
iscoveries made this fall. This area exhibits
positive geophysical characteristics and corresponding geochemical
vectors for major VMS mineralization to the east of the historic
MacDonald has mobilized a geophysical crew to conduct surface
electromagnetics (Crone Geophysics) and detailed ground magnetics.
This data is considered to be the final step in prioritizing our
drill targets. The electromagnetic (EM) survey is designed to map any
conductive features associated with the gravity anomaly east of our
historic drill program. 
To view Figure 3, please visit the following link: 
Qualified Person 
Quentin Yarie, P.Geo., is the qualified person in regard to the
technical data contained within this news release and will be
responsible for overseeing all aspects of the Company's exploration
About MacDonald Mines Exploration Ltd.  
MacDonald Mines is a mineral exploration company with an established
exploration history in the Canadian Northlands. MacDonald Mines has
set upon a strategic direction of exploration with particular focus
on copper, zinc, vanadium, nickel and titanium in the "Ring of Fire"
area of the James Bay Lowlands of Northern Ontario. More detailed
information about the Company is available on the website: 
Cautionary Statement: The foregoing information may contain
forward-looking statements relating to the future performance of
MacDonald Mines Exploration Ltd. Forward-looking statements,
specifically those concerning future performance, are subject to
certain risks and uncertainties, and actual results may differ
materially from MacDonald Mines plans and expectations. These plans,
expectations, risks and uncertainties are detailed herein and from
time to time in the filings made by MacDonald Mines with the TSX
Venture Exchange and securities regulators. MacDonald Mines does not
assume any obligation to update or revise its forward-looking
statements, whether as a result of new information, future events or
otherwise. We seek safe harbour. 
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
No stock exchange, securities commission or other regulatory
authority has approved or disapproved the information contained
MacDonald Mines Exploration Ltd.
Brent Nykoliation
Senior Vice President, Corporate Development
(416) 364-4986
(416) 364-2753 (FAX) 
MacDonald Mines Exploration Ltd.
Kirk McKinnon
President & CEO
(416) 364-4986
(416) 364-2753 (FAX)
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