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TORONTO, ONTARIO--(Marketwire - March 20, 2012) -




NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES



MacDonald Mines Exploration Ltd. (the "Company") (TSX VENTURE:BMK) announced today a non-brokered offering of securities (the "Offering") to raise gross proceeds of up to $4,100,000 through the sale of flow-through common shares (the "FT Shares") and non flow-through common shares (the "Shares") to be offered on a private placement basis pursuant to exemptions from the prospectus requirement. The offering price is $0.12 per FT Share and $0.11 per Share.


In connection with the Offering, the Company may pay finders' fees of up to 5% of the gross proceeds of the Offering and issue non-transferable compensation options ("Compensation Options") to such finders of up to 5% of the number of FT Shares and/or Shares sold in the Offering. Each Compensation Option is exercisable to acquire one Common Share at a price of $0.12 per share for a period of twenty four months from the date of issue. It is expected that insiders of the Company will be subscribing for securities in the Offering, on the same terms as arm's length investors.


All securities to be issued in connection with the Offering are subject to a hold period of four months and one day from the date of issuance. Closing of the Offering is conditional on the receipt of all required regulatory approvals, including the approval of the TSX Venture Exchange ("TSXV").


Proceeds of the sale of FT Shares will be used to incur "Canadian Exploration Expenses" within the meaning of the Income Tax Act (Canada) primarily on its Butler Property in the James Bay Lowland region of Ontario. The net proceeds of the sale of Shares will be used to fund exploration programs on its Canadian properties and for general corporate expenses.



Administration



On March 19, 2012, a total of 550,000 stock options were granted to directors, officers and consultants of the Company in accordance with the terms of the Company's incentive stock option plan filed with the TSXV and approved by shareholders on June 28, 2011. These options are exercisable at a price of $0.12 per share for a period of five years and are subject to a four month and one day hold period as required by the rules of the TSX Venture Exchange.



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.




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 nickel, chrome, copper, zinc, vanadium and titanium in the "Ring of Fire" area of the James Bay Lowlands of Northern Ontario.


With over 9 years of exploration in the James Bay Lowlands, the Company has systematically acquired quality land positions based on a very precise selection format that utilizes region-wide interpretations completed by geological consultant Hadyn Butler, P. Geo. MacDonald is now the second largest landholder in the Ring of Fire and has a proven track record of environmentally and socially conscious exploration practices.


MacDonald Mines exploration focus has been on 3 properties - the Butler, the Semple-Hulbert and the Sanderson. Recent exploration has been focused on the Butler property, where the Company has identified seven significant zones of multi-element mineralization, including copper-zinc VMS systems, vandiferous titano-magnetite and magmatic nickel sulphides.


The Company has established rapport with First Nation Communities in this region, which has culminated in the signing of exploration agreements with the Kasabonika Lake and Webequie First Nations.




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.





FOR FURTHER INFORMATION PLEASE CONTACT: Brent Nykoliation
MacDonald Mines Exploration Ltd.
Vice President of Business Development
(416) 364-7024
(416) 364-2753 (FAX)
bnykoliation@macdonaldmines.com
ORKirk McKinnon
MacDonald Mines Exploration Ltd.
President & CEO
(416) 364-7024
(416) 364-2753 (FAX)
kmckinnon@macdonaldmines.com
http://www.macdonaldmines.com/">www.macdonaldmines.com