MacDonald Mines Exploration Limited announces that it has closed the non brokered, private placement financing of USD 3,430,800 with HudBay Minerals Inc.

The transaction was comprised of 19,060,000 units at USD 0.18 per unit. Each unit consists of one Class A share of MacDonald Mines and one half of one Share purchase warrant. Each full Warrant is exercisable for one Share of MacDonald Mines at USD 0.25 per share for a period of 36 months expiring on October 8th 2013. A total of 9,530,000 warrants were issued.

The financing is subject to receipt of final approval of the TSX Venture Exchange. All securities issued in connection with the financing are subject to a restricted period of four months and one day from the date of issuance. HudBay now owns 9.9% of MacDonald Mines' issued and outstanding Shares (14.15% on a partially diluted basis).

Employing two Cartwright diamond drills, the program will run for the next 4 weeks and will consist of approximately 3,700 metres of drilling. Focus will be on testing existing intersections at greater depths that were verified from the previous drill program, and intersecting a variety of new targets up to 400 meters in depth. These new targets were identified by a detailed airborne Geophysics using Aeroquest International's AertoTEM IV system and were conducted after the previous drill program.

Six targets have been selected to test for VMS and several potential nickel targets in the area are currently being ranked by Robin Chisholm, Craig Scherba, Dr Larry Hulbert and Quentin Yarie.