Medgold Expands Portfolio with Three Gold Exploration Permits in Galicia, Spain – SYS

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TSX-V: MED

VANCOUVER, April 9, 2013 /PRNewswire/ – Medgold Resources Corp. (TSX-V: MED),
the European focused gold exploration company, is pleased to announce
that it has now completed the application process and paid all relevant
taxes for three contiguous gold exploration permits covering 79 square
kilometres in southern Galicia, Spain, (the “Pinzas Gold Project”).

The applications cover approximately 79 square kilometres of the highly
prospective Galician Hercynican Massif. Licence issuance is expected in
Q2 2013.
Gold-bearing structure already identified over 14 strike km covering
several licence areas.
Rock chip sampling has yielded results of up to 11.10, 5.49 and 2.73 g/t
Au. (These results are historic and the Company has not independently
verified them.)
Applications also submitted, through a public tender process, for 6
adjoining licences.
Pinzas Gold Project contains multiple old gold workings and is
considered to be highly prospective for gold.

Dan James, President of Medgold, said, “This transaction marks our entry
into Spain. We believe the entire region is highly prospective, already
hosting several advanced gold projects. We have identified a 14 km
linear deformation zone, with multiple known high-grade gold
occurrences on the application areas, and we will be implementing
exploration work upon licence issuance by the provincial mining
authorities to test the potential of this area and identify further
targets. The geology is very similar to our Boticas project in
Portugal, located 100 km to the southeast, where we have an exclusive
option, and we consider that both projects have multi-million ounce
potential.

Our momentum continues to build as we advance our strategy of becoming a
leading European gold company. Since the beginning of the year we have
applied for 9 permits in Galicia (3 pending issuance and 6 applied for
via public tender), received issuance of the Vila de Rei licence in
Portugal, and we hold the exclusive licence option to the Boticas gold
project in Portugal, which is expected to be issued in Q2 2013.
Results from Boticas and Vila de Rei include surface rock chip assays
of up to 204.0 g/t Au and 24.7 g/t Au respectively, as previously
reported in our February 5, 2013 news release. We have a highly
exciting foundation and I look forward to continuing to build and
develop our portfolio in Spain, Italy and Portugal as we continue to
rapidly build shareholder value.”

The Pinzas Gold Project

The Pinzas Gold Project is located in the southwest corner of the highly
prospective and productive gold region of Galicia, in northwest Spain.
Mineralization is hosted in granites in the Hercynian orogenic belt,
which extends northwards to the advanced-stage gold project of Salave¹, and southwards to Boticas and the Jales-Gralheira gold mine in
Portugal.

¹ Salave has measured and indicated resources of 17.9 Mt at 2.92 g/t Au
for 1.68 Moz Au and inferred resources of 3.7 Mt at 2.80 g/t Au for 338
koz Au [Source: ‘Technical Report on Salave Gold Deposit, Spain‘ by
Scott Wilson RPA, 25/FEB/2010].

Medgold has completed the application process and paid all taxes for
three exploration permits at Pinzas which are expected to be issued in
Q2 2013. These permits cover approximately 79 square kilometres of
free-ground and are therefore not subject to a public tender process.
They are adjacent to an additional six pre-defined licence areas under
application through a public tender which closed on March 15, 2013,
with the outcome of the tender expected in Q2 2013.

Historical work undertaken within the Pinzas permit application area
included rock samples collected by Ormonde Mining plc (“Ormonde”) in
2005, which yielded results from below detection limit, up to 11.10,
5.49 and 2.73 g/t Au in 11 samples. Mineralization is hosted within a
14 km north-south trending structural corridor where parallel quartz
veins, commonly high-grade, are concentrated along fault boundaries
with schistose metasediments. The structural corridor within the
public tender licence area was drill-tested by a previous company in
the 1980’s with 3,705 m drilled in 16 holes, with gold-bearing quartz
veins intersected in all drill holes. These drill results are historic and the Company has not independently
verified them. Medgold collected 21 rock samples in the permit application areas, with
results from below detection up to 1.00 and 2.13 g/t Au.

The Ormonde Agreement

In July 2011 Medgold signed a Binding Letter of Intent (“BLOI”) with
Ormonde covering a 2,400 square kilometre agreement area within which
Ormonde has an extensive rock and stream sediment geochemical database
from samples collected in 2004-2006. Under the terms of the BLOI,
Medgold was provided access to Ormonde’s database in return for
agreeing to undertake 100,000 EUR of exploration expense, where part of
this expense could be incurred through the cost of licence
applications. On April 4, 2013 the BLOI was modified such that Medgold
now has 100% ownership of the project and on any other permits or
projects acquired in the agreement area, with an obligation to pay
Ormonde a 1.5% Net Smelter Royalty on any future gold production from
any such projects with no further funding obligation. This will enable
Medgold to solely develop the potential of the project area which
contains multiple historic workings and strong geological signatures
for gold mineralization.

Sampling Quality Analysis and Quality Control

Medgold has carried out limited rock chip sampling at Pinzas for
evaluation purposes. The samples collected were prepared by ALS
Minerals at the Seville Laboratory, Spain, and analyzed for gold by
fire assay with atomic adsorption finish. Multielements were analyzed
by ICP.

Qualified Person

Stewart D. Redwood, Consulting Geologist to the Company, is a Qualified
Person as defined by National Instrument 43-101 – Standards of Disclosure or Mineral Projects. Dr. Redwood has reviewed and approved the technical information
contained in this news release, some of which is based on reports by
historical workers. The Company, however, has not independently
verified the historic results.

About Medgold

Medgold is aiming to become the leading Mediterranean-focused gold
exploration and project development company, with an extensive pipeline
of projects across Portugal, Italy and Spain, targeting economically
stressed, but politically stable European countries that are seeking
foreign investment to invigorate the mining sector.

Additional information on Medgold can be found on the Company’s website
at www.medgoldresources.com and by reviewing the Company’s page on SEDAR at www.sedar.com.

ON BEHALF OF THE BOARD

“Ralph Rushton”
Ralph Rushton, Director

Forward-looking statements
This press release may contain forward-looking statements including, but
not limited to, comments regarding the timing and content of upcoming
work programs, geological interpretations, receipt of property titles,
potential mineral recovery processes, and other related matters.
Forward-looking statements address future events and conditions and
therefore involve inherent risks and uncertainties. Medgold Resources’
projects in Europe are at an early stage and all estimates and
projections are based on limited, and possibly incomplete, data. More
work is required before the mineralization and the projects’ economic
aspects can be confidently modelled. Actual results may differ
materially from those currently anticipated in this news release. No
representation or prediction is intended as to the results of future
work, nor can there be any promise that the estimates and projections
herein will be sustained in future work or that the projects will
otherwise prove to be economic.

SOURCE Medgold Resources Corp.

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