Maxy Options the Midu Gold Project, Yunnan Province, P.R. China.

Business Editors

VANCOUVER, British Columbia--(BUSINESS WIRE)--March 8, 2004

Maxy Gold Corp. ("Maxy") (TSX VENTURE:MXD) is pleased to report that its wholly owned subsidiary has negotiated and concluded a formal Cooperative Joint Venture Contract with Yunnan Geology and Mining Co. Ltd. ("YGM") to acquire a 75% interest in the Midu Gold Project, located in Yunnan Province, P.R. China. The Midu Gold Project comprises three exploration permits totaling 189.07 square kilometers, located approximately 200 km west of Kunming, the capital city of Yunnan Province.

Geologically, the project area is located within the prolific north-west trending poly-metallic metallogenic belt just north of the giant Red River Structure Zone which hosts numerous copper-gold porphyries, gold, copper-nickel, lead-zinc and platinum group metal deposits and prospects. The project occurs near the extremities of the over 1,000 km north-south trending belt developed within the Panxi continental rift, which has developed along the margin of the Yangtze Craton in the provinces of Sichuan and Yunnan. Gold mineralization on the Midu Gold Project is hosted within Triassic, Cretaceous and Tertiary sedimentary rocks that have been deformed, altered and intruded by a series of unsubdivided ultramafic bodies, diabase dykes and granitic plutons.

Limited trenching on one permit area has identified two gold mineralized zones. Zone I is traced over an area 50 meters by 40 meters and has returned gold values ranging from 0.5 to 3.32 g/t Au. Zone II has been outlined over an area of 200 meters by 90 meters and returned gold values ranging from 1.12 to 26.4 g/t Au. Grab sampling within Zone II yielded high grade gold assays of 159 g/t and 71.5 g/t.

The two other permit areas cover a strong north-west trending gold in soil geochemical anomaly with values of up to 263 ppb Au. Grab samples of boudinaged quartz veins and sheared quartz sandstones returned values in the range of 2.24 to 12.6 g/t gold. A trench intercepted a 7.4 meter mineralized zone with an average grade of 3.8 g/t Au.

Under the terms of the Cooperative Joint Venture Agreement a Sino-Foreign Joint Venture Cooperative Company will be formed with YGM. Maxy has the right to earn a 75% interest in the Cooperative Company by investing US$750,000 over two years, plus payments to YGM totaling US $100,000 over two years. After Maxy has earned its 75% interest, contributions to the Cooperative Company will be made pro rata, 75% by Maxy and 25% by YGM. YGM's interest can be diluted to not less than 10% if they elect not to make cash contributions.

Maxy will initiate an exploration program once all required approvals are received.

Maxy Gold Corp. is exploring for precious metals in China and is currently carrying out an exploration program on the Niubo - Dichu Property within the greater Luchun Gold Project.

Statements in this press release other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, constitute forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company's business, including risks inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.

Maxy Gold Corp.

Lou Duarte, President & CEO 

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.