FOR IMMEDIATE RELEASE  

NI 43-101 � 236 million tonne magnesium resource

July 7, 2009 - Vancouver, British Columbia

Mr. Larry W. Reaugh, Chairman & Chief Executive Officer of Molycor Gold Corp. (TSX.V-MOR; Frankfurt-M1V; Pink Sheets-MLYFF) (�Molycor� or the �Company�) is pleased to report results of the NI 43-101 updated resource estimate on their 100% owned Tami-Mosi Magnesium project in Nevada.

The report, adhering to the NI 43-101 standards, quotes 236,183,772 tonnes of an inferred resource at a grade of 10.00% Mg.

The NI 43-101 Resource Study Estimate at 8.00% Mg cut-off is summarized as follows:

The 2009 Mineral Resource Estimate is reported in accordance with Canadian Securities Administrators� National Instrument 43-101 (�NI 43-101�) and has been estimated in conformity with the Canadian Institute of Mining, Metallurgical and Petroleum (CIM) Mineral Resource and Mineral Reserve definitions referred to in NI 43-101, Standards of Disclosure for Mineral Projects.  Mineral resources are not mineral reserves and do not have demonstrated economic viability.  There is no certainty that all or any part of the mineral resource will be converted into mineral reserves.  The 2009 Mineral Resource Estimate was prepared by Norman Tribe, P.Eng, of N. Tribe & Associates Ltd., an independent qualified person as this term is defined in NI 43-101.

In order to arrive at an Inferred Mineral Resource estimate for the dolomite mineralization, the drill holes were plotted on 100 meter spaced cross section drawings.  The following parameters were used in this calculation:

• Drill holes plotted and projected onto vertical cross sections oriented east west. (N90�E, looking north).
• The Inferred Mineral Resource blocks were outlined on section, on grades exceeding 8% Mg and projected 100 meters along strike and down dip or half way to the next intersection whichever was smaller.
• Although the dolomite bands are continuous along strike, no resource estimate was applied to those sections where the drill holes were more than 100 meters apart.
• The resource blocks were projected to a depth of 200 meters below the existing surface.  This depth is considered to be a practical depth for open pit mining.
• The mineral zones outline the Simonson dolomite unit which is only partially included in the resource.
• A figure of 2.84 tonnes per cubic meter, was used to calculate the tonnage.  This figure is listed as a standard S.G. for dolomite.
• An external dilution factor of 10% was taken into account.  The grade of this dilution was given a value of 4.89% Mg.  This being the average grade of material adjacent to the resource blocks.  Some minor internal dilution was taken into the calculation where practical.  These were isolated instances where samples were missing or grades were just slightly below the cut off.
• The cut off was arbitrarily set at 8% Mg.

The samples were collected and bagged on site and transported to ALS Chemex Laboratory in Sparks where sample preparation was completed.  The samples were then forwarded to the ALS Chemex Laboratory in N. Vancouver for analysis.  The analytical method used was ALS �s method ICP-ME61 which gives values in percentages of magnesium.  Check samples were completed internally by ALS.

The new NI 43-101 technical report will be filed with regulators on SEDAR within 45 days of this news release.

The local geology consists of beds of Guilmette Limestone, Pilot Shale, Joanna Limestone and Chainman Shales dipping moderately to the west with block faulting disrupting the beds so that dips may steepen or even dip to the east in some localities.  Within the Guilmette are beds of dolomite altered from the limestone which are referred to as the Simonson Dolomite unit.

The initial drilling program by Molycor Gold Corp. consisted of 24 Diamond drill holes 12 in the vicinity of the magnesium discovery and 12 in the vicinity of the manganese discovery.

A resource was calculated using the drill hole data as well as surface sampling conducted by N. Tribe & Associates Ltd.

Mineral Processing and Metallurgical Testing

The recovery of magnesium from dolomite ores generally involves dissolving the dolomite with acids (CI) and precipitating a magnesium oxide or magnesium chloride for further processing.

Magnesium metal can be produced by one of two processes.  The electrolytic process uses magnesium chloride produced from either magnesite, seawater or brines rich in magnesium chloride.  The silicothermic process mixes calcined dolomite or magnesite with ferrosilicon (a combination of iron and silicon metal) to produce a magnesium vapour which is then condensed in cooling vessels to form magnesium metal.  Both processes are energy intensive and require low-cost electricity to be competitive.

The Company engaged Teck Cominco Global Discovery Labs to analyze a 9 meter (30 foot) section of hole #TM-07-13, from 270 � 300 feet, for purity of the dolomite.  Hole #TM-07-13 averaged 11.4% Mg (18.6% MgO) over 164.4 meters (540 feet).  Results returned a high purity form of dolomite that is virtually identical with the National Bureau of Standards (�NBS�), �Standard 88B�.

These results indicate that the chemical composition of the Tami-Mosi dolomite is favourable for either of these recovery processes.

In order to provide a comparison of the grade at the Tami-Mosi with several producing magnesium mines throughout the world, the following table is provided:

Drilling

N. Tribe & Associates Ltd. has detailed areas in the NI43-101 report for drilling programs to further develop the Tami-Mosi Magnesium resource.  The report recommends 3,300 meters of reverse circulation drilling in 13 drill holes.

Metallurgical Testing

N. Tribe & Associates Ltd. has recommended that the Company engage a recognized metallurgical laboratory to establish a recovery method, process and cost for producing magnesium metal.

About Magnesium

Magnesium is a widely used industrial metal categorized by its light weight.  The metal is produced in 2 ways: 1) electrolysing the brine in salt water; 2) smelting high grade ore.  The supply of magnesium has undergone dramatic change.  The production of the metal from source has almost ceased in Canada and the United States, only one company in Utah remains.  The Chinese now produce 7/8 of the world�s primary supply.  The total world production is estimated at approximately 800,000 metric tonnes (2008 USGS).  This distortion of the market has led to dumping charges and the incidence of an import duty in the United States; this dependence on virtually only one foreign source presents opportunity.  The price of magnesium is currently US$2,800 a metric tonne or US$1.20 lb (minor metals).  The metal has enjoyed a favourable price for decades and has reached $6,000/tonne in times of demand.

About Molycor Gold Corp.

Molycor is a diversified precious and base metal exploration and development company focusing on magnesium, molybdenum and gold exploration in North America.

This news release was reviewed by Norman L. Tribe, P.Eng, a qualified person under NI 43-101.

On Behalf of Management

Larry W. Reaugh
Chief Executive Officer

For all Molycor Gold Corp. investor relations needs, investors are asked to visit the Molycor Gold Corp. website at www.molycor.com.

Information Contact

Larry W. Reaugh

Chief Executive Officer

Head Office: 2A 15782 Marine Drive, White Rock, B.C.  V4B 1E6

Telephone: 604-531-9639    Facsimile: 604-531-9634
Email: info@molycor.com

www.molycor.com

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