MacDonald Outlines Exploration Status on Its VMS, Nickel and Chromite Targets; Next Phase of Drill Program to Start June 16, 2012

TORONTO, ONTARIO--(Marketwire - June 7, 2012) - MacDonald Mines Exploration Ltd. (BMK.V) ("MacDonald" or the "Company") reports that it continues to analyze and refine the results of its most recent exploration program on the Butler Property drill targets in the Ring of Fire.

MacDonald has now reached the point where its exploration knowledge and experience have vectored in on three large exploration targets. These targets represent the culmination of intensive study derived through scientific assessment (geological, geophysics and geochemistry) and previous drilling. The Company will target 3 different minerals with drill programs planned for each commodity: Volcanic Massive Sulphides ("VMS") - Copper/Zinc, Nickel and Chrome. The Butler property hosts an abundance of target areas that require and merit more in depth exploration. The three targets we intend to drill are the most advanced and offer the best opportunity for success.

The following is a brief review of each target.

VMS - Butler 3

Two diamond drill holes targeting two distinct Induced Polarization ("IP") responses were completed during May 2012 (BP12-Cu08 and BP-Cu09). The IP targets were explained by intersections of disseminated sulphides and significant magnetite. The Company expected better intersections consisting of more copper rich sulphides, however the drill holes intersected highly altered rocks and anthophyllite alteration was pervasive in these two holes.

As previously released, the Butler 3 area exhibits the alteration characteristics of a large VMS system BP12-Cu08 & 09 intersected the first extensive intersections (hundreds of metres) of anthophyllite. The abundance of this type of alteration should be proportional to the size of the VMS system (massive sulphides).

A third hole (BP12-Cu10) was drilled on a time domain and magnetic susceptibility target. BP12-Cu10 intersected 18 metres of stringer sulphide mineralization from 383-402 metres down hole (approximately 320 metres vertical depth). The primary rock type was rhyolite suggesting the stringer mineralization is beneath the core of the expected VMS core. Of particular interest were elevated arsenic and lead values measured with an XRF unit. Assay results are pending.

Based on the above drilling results, the Insight Survey (DCIP) and various time domain results have been refined. Visual observations and galvanic measurements of the massive sulphide materials intersected at Butler 3 have confirmed that these materials are not as conductive as expected. Interstitial silica prevents the more massive sulphides from acting as a strong Electro-Magnetic ("EM") conductor - however the IP and resistivity affects are significant. It has become apparent that the EM anomalies are coincident/defines the edges - or stringer mineralization - and not likely mapping the more massive sulphides.

Butler 3 IP Drill Target Bound by EM Anomalies

With this interpretation of geology, geophysics and geochemistry the Company has expanded the zone of interest at Butler 3 to the North East in the direction of Butler 2. The revised interpretation outlines a large IP target bounded by EM conductors. The target extends from 18 metres below surface to depths greater than 200 metres and is approximately 200m x 450m in lateral extent. The IP anomaly remains open to the North - and this is where the current IP survey is being conducted. There has been no drilling into this target. Previous intersections of mineralization (BP11-Cu06) are along the south-western limit of the IP anomaly.

Diamond drill hole BP11-Cu06 intersected 167 metres of 0.39% Cu copper and 1.13% Zn. Intervals within this drill hole were:

--  11.50m of 1.15%Cu (208.5m-220m) 

--  50.5m of 3.62% Zn including 9m of 6.88% Zn (169.5m-220m) 

Drilling will commence on this target once the IP/resistivity results are finalized. For a visual representation of Butler 3 please click here.

Butler 3 shows the traditional complexity of lithology, structure and alteration over-print of a VMS system. The following observations at Butler 3 have been reinforced by the last drill results:

1.  The volume of alteration is exceptional, indicating that a very large

    volume of hydrothermal fluid discharged in this region.  

2.  Butler 3 is contained in a felsic-dominated sequence. The apparent

    resistivity values collected are typical of these types of rocks. 

3.  The alteration zone is Cu-enriched, and the Cu tenor is high (greater

    than 3%). The DCIP chargeability modeling indicates anomalies typical of

    increased sulphides. 

Nickel - Butler 5

Three drill holes BP12-Ni01, 02 and 03 were targeted at geophysical anomalies believed to be related to nickel sulphide environments. BP12-Ni01 and 03 targeted a moderate IP anomaly in an area proximal to known nickel sulphide mineralization encountered in drill hole MN07-039 in 2007. Although the proximal 2007 mineralization was hosted in gabbro, the 2012 holes intersected mainly ultramafic rocks (peridotite and dunite). In the Ring of Fire, it is these ultramafic rocks that host the known nickel deposits. The IP anomalies were explained by intersections of disseminated sulphides that have been sent for assay.

Geologic, EM, IP and Gravity Nickel Target

Patches of magmatic sulphides (nickel) were observed in the ultramafic rocks. In addition the drill holes were also observed to contain a pervasive magmatic brecciated appearance and localized intense hydrous alteration zones. A strong off-hole electromagnetic anomaly was detected in BP12-Ni01 vectoring towards proposed drill hole BP12-Ni04, which is in an area containing coincidental airborne electromagnetic and gravity anomalies.

BP12-Ni02 was drilled in the central portion of Butler 5 to test the significance of a prominent north-east trending linear magnetic low with localized moderate IP anomalies. The gabbroic rocks encountered through the entire hole (BP12-Ni02) are noteworthy in that they contain abundant (10-15%) rounded to sub-rounded, melted to partially melted inclusions of basement granodiorite. The ubiquitous nature of these inclusions in the gabbro indicates that the host/parental magma experienced significant silica and alkali element contamination. This type of contamination is a well-known magmatic factor causing sulphides and oxides (chromite, Fe-Ti-V oxides) to segregate from magmas and form deposits. The localized IP anomalies associated with this gabbroic horizon were explained by vein and fracture filling sulphides.

Assay results for the above mentioned holes are pending.

Dr. Larry Hulbert, a consultant to the Company stated "the discovery of new ultramafic rocks with pronounced magmatic breccias, strong alteration and localized magmatic sulphides, and a strong off-hole EM anomaly vectoring towards proposed hole BP12-Ni04 in an area proximal to the best nickel sulphide mineralization discovered on the Butler property to date is most encouraging. The presence of pervasive melted country rock inclusions in the thick central Butler 5 gabbro body intersected in BP12-Ni02 has strong magmatic sulphide and oxide implications (nickel)".

Chromite - Butler 5

Two drill holes (BP12-Cr01 and Cr02) targeting a very strong and large coincident airborne and ground gravity anomaly believed to be part of the Dunite-Peridotite-Pyroxenite-Gabbro package that hosts chromite deposits similar to that associated with the "Big Daddy" and "Black Thor" deposits. The most recent joint airborne gravity gradiometer survey commissioned by the Ontario Geological Society & Geological Society of Canada identified a density anomaly on Butler 5 that has the greatest measured amplitude for the entire airborne survey conducted over the Ring of Fire region. The gravity signature of this anomaly is greater in size than that over the known chromite deposits in the Ring of Fire.

Both holes drilled extensive thicknesses of gabbro similar in appearance and thickness to the outer "Gabbro" unit in the above-mentioned Dunite-Peridotite-Pyroxenite-Gabbro package reported at the current Chrome deposits in the Ring of Fire.

Constrained Gravity Model and Geology Confirms Chromite Target

Specific gravity measurements were taken of the core from BP12-Cr01 and Cr02. A constrained model of the ground gravity survey data and magnetics for the area indicates that holes BP12-Cr01 and Cr02 were collared on the edge of the gravity anomaly and drilled away from the stratigraphic interval that should host chrome mineralization.

Based on the information gained from BP12-Cr01 & Cr02 - BP12-Cr03 will be collared west of BP12-Cr01 and drilled in the opposite direction to intersect the density (gravity) anomaly. BP12-Cr03 will target the entire Dunite-Peridotite-Pyroxenite package and if a chrome horizon exists along this greater than 1km long density feature it should be intersected.

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 programs.

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.

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.

More detailed information about the Company is available on the website: www.macdonaldmines.com.

Cautionary Statement:

The foregoing information may contain forward-looking statements relating to the future performance of MacDonald Mines Exploration Inc. 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 herein.