Majestic Gold Corp.

Published : December 22nd, 2015

Majestic Gold Corp. Clarifies Disclosure Following Bcsc Review

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Majestic Gold Corp. Clarifies Disclosure Following Bcsc Review

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306 - 1688 152nd Street Surrey, British Columbia Canada, V4A 4N2 Telephone: 604-560-9060

Facsimile: 604-560-9062 Email: [email protected]


MAJESTIC GOLD CORP. CLARIFIES DISCLOSURE FOLLOWING BCSC REVIEW


Vancouver, British Columbia - December 21, 2015 - Majestic Gold Corp. ("Majestic" or the "Company") (TSX.V: MJS, FSE: A0BK1D) announces that as a result of a review by the British Columbia Securities Commission ("BCSC"), the Company is issuing this news release to clarify disclosure on its Songjiagou Project in China.


The Company has been requested to provide a new or amended technical report that corrects certain non- compliant NI 43-101 and Form 43-101F1 disclosure in the report titled "Independent Technical Report of Songjiagou Project, Shandong Province, The People's Republic of China" (the "PEA") dated August 2013 by SRK Consulting China Ltd., to address deficiencies in respect of: the Certificate of the Qualified Person; Reliance on Other Experts; Resource Estimates; and lack of cautionary language. More specifically, changes reflected in the Amended PEA will include the following:

  • The certificates of qualified persons are to be amended to ensure that at least one qualified person is responsible for each section of the amended PEA;

  • The method of analysis that determined the capping level at 40 g gold, and will disclose the amount and distribution of samples in the database that were reported as "missing";

  • The resource estimate is to be amended to account for depletion by previous underground mining;

  • How the resource estimate is compatible with the mineral deposit model, and how the resource estimate outside the current pit shell limit meet the CIM Definition for "reasonable prospects of eventual economic extraction";

  • The amended PEA will include required cautionary language along with every statement of current resource estimates;

  • The amended PEA will further explain assumptions that appear unreasonable including how pit limits extend outside the mining license, capacity of tailings storage, and size of waste dump;

  • The amended PEA will include a discussion of the impact of taxes, royalties, and other government levies on the cash flow model and the resultant after-tax results.


These deficiencies are all anticipated to be addressed in an amended report that will be filed on SEDAR as soon as practicable. In the interim, investors are cautioned that the Company's mineral resource estimate and preliminary economic assessment is unsupported by a compliant NI 43-101 technical report, contrary to NI 43-101, and should not be relied on until independently verified and supported by an amended technical report.


The review also noted that the Company's website and the corporate presentation "Gold Production in Shandong Province, China" dated January 2015 (the corporate presentation) contain disclosure that is non- compliant to certain sections of NI 43-101. The Company did not include the following cautionary language as required by NI 43-101 in regard to the PEA: "The preliminary economic assessment is preliminary in nature, it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment will be realized."

The Company's production decision was not based on a feasibility study of mineral reserves demonstrating economic and technical viability. The Company's production decision was based on the open pit optimization resource model set out in the PEA, which takes into account the relatively low mining costs negotiated by the Company. Mineral resources that are not mineral reserves have not yet demonstrated economic viability. Due to the uncertainty that may be attached to mineral resources, it cannot be assumed that all or any part of a mineral resource will be upgraded to mineral reserves. Therefore, there is no certainty that the results concluded in the PEA will be realized. The Company's investor presentation and website have now been updated to include required cautionary language.


The Company's corporate presentation also illustrated a 600,000 ounce gold quantity, designated as an "outside mineable resource", located outside of the pit shell. Reference to this quantity has been deleted from the slide. The amended technical report will consider the status of this quantity. At this time, use of the designation "mineable resource" is retracted.


The PEA, the Company's corporate presentation and website also contain references to resources that add Inferred Resources to other categories of Resources, which is not allowed under section 2.2 of NI 43-101. All disclosure has now been amended to conform to this section of NI 43-101.


In its corporate presentation, the Company fails to identify and disclose the relationship to the Company of the qualified person who prepared or supervised the preparation of, or approved the technical information it is disclosing. The presentation has been amended to comply with section 3.1 of NI 43-101. All technical information contained in this news release has been reviewed and approved by Stephen Kenwood, P. Geo., who is a director of the Company and a qualified person under the definitions established by NI 43-101.


About Majestic Gold

Currently focused solely in China, Majestic Gold Corp. is a British Columbia based company engaged in commercial gold production at the Songjiagou Gold Mine in eastern Shandong Province, China. Additional information on the Company and its projects is available at www.sedar.com and on the Company's website at www.majesticgold.com.


For further information, please contact:


Stephen Kenwood, P. Geo., President, CEO & Director Telephone: (604) 560-9060

Email: [email protected] Website www.majesticgold.com


Cautionary Notes

Certain statements contained herein may constitute forward‐looking statements and are made pursuant to the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995 and Canadian securities laws. Forward‐looking statements are statements which relate to future events. Such statements include estimates, forecasts and statements as to management's expectations with respect to, among other things, business and financial prospects, financial multiples and accretion estimates, future trends, plans, strategies, objectives and expectations, including with respect to production, exploration drilling, reserves and resources, exploitation activities and events or future operations. Information inferred from the interpretation of drilling results and information concerning mineral resource estimates may also be deemed to be forward- looking statements, as it constitutes a prediction of what might be found to be present when, and if, a project is actually developed.

In some cases, you can identify forward‐looking statements by terminology such as "may", "should", "expects", "plans, "anticipates", believes", "estimates", "predicts", "potential", or "continue" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, level of activity, performance or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward‐looking statements.


While these forward‐looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggestions herein. Except as required by applicable law, Majestic Gold does not intend to update any forward‐looking statements to conform these statements to actual results


Production Disclaimer

The Company's production decision was not based on a feasibility study of mineral reserves demonstrating economic and technical viability. The Company's production decision was made based on the open pit optimization resource model set out in the Preliminary Economic Assessment ("PEA"), which takes into account the relatively low mining costs negotiated by the Company. The pit optimization that was conducted in the preliminary assessment generated a production schedule summary at grade cut-off of 0.30 gram per tonne Au.


The PEA includes the inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the preliminary assessment will ever be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

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Majestic Gold Corp.

DEVELOPMENT STAGE
CODE : MJS.V
ISIN : CA5609121077
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Majestic Gold is a gold exploration company based in Canada.

Majestic Gold holds various exploration projects in China.

Its main asset in development is SONG JIAGOU in China and its main exploration property is SAWAYAERDUN in China.

Majestic Gold is listed in Canada, in Germany and in United States of America. Its market capitalisation is CA$ 41.1 millions as of today (US$ 32.8 millions, € 28.8 millions).

Its stock quote reached its highest recent level on March 14, 1997 at CA$ 2.00, and its lowest recent point on September 04, 2009 at CA$ 0.02.

Majestic Gold has 912 270 016 shares outstanding.

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Annual reports of Majestic Gold Corp.
2008 Annual report
Nominations of Majestic Gold Corp.
10/29/2013Appoints New Directors, Adopts Advance Notice Policy
3/12/2013Appoints New Chief Financial Officer and Director
12/23/2009Appoints Vice President Development and Exploration
12/22/2009Appoints New Director
9/19/2008APPOINTS DAN PISENTI TO BOARD OF DIRECTORS
11/1/2007 APPOINTS MINE GEOLOGIST & GENERAL MANAGER FOR SONG JIAGOU
Project news of Majestic Gold Corp.
1/20/2011(Song Jiagou)Wardrop Delivers Positive Preliminary Assessment for Songjia...
4/15/2010(Song Jiagou)Provides Update on Song Jiagou Property
9/5/2008(Song Jiagou)ANNOUNCES SIGNIFICANT TRENCH RESULTS AT SONG JIAGOU
1/10/2008(Sawayaerdun) ENGAGES FIRM FOR TECHNICAL REPORT AND BEGINS YEAR ROUND ACC...
1/3/2008(Sawayaerdun) ANNOUNCES HIGH GRADE SAMPLE AT SAWAYAERDUN
10/4/2007(Song Jiagou)Outlines 2007 Program For Song Jiaguo
Corporate news of Majestic Gold Corp.
1/29/2016Majestic Gold Corp. Reports 2015 Annual Results And Option G...
1/27/2016Majestic Gold Corp. Files Amended Technical Report
12/22/2015Majestic Gold Corp. Clarifies Disclosure Following Bcsc Revi...
8/28/2015Majestic Gold Corp. Reports 2015 Third Quarter Results
8/13/2015Shareholder Update
8/21/2013(Song Jiagou)Files NI43-101 Report on Updated Preliminary Economic Assess...
7/29/2013Completes Swap of Equity for Net Profits Interest
7/8/2013(Song Jiagou)SRK Delivers Updated Preliminary Economic Assessment for Son...
6/27/2013Announces Agreement to Swap Net Profits Interest for Equity ...
3/28/2013Contracts VantageWire for Marketing and Advertising Services
2/19/2013First Quarter Gold Production
2/1/2013Corporate Update
4/27/2011Provides Update on Mill Construction
4/23/2010Greatly Increases Resources at Its Songjiagou Project
2/25/2010 Announces Agreement to Acquire Remaining 40% of Muping Join...
1/27/2010Announces Resignation of Director and Establishes Board Comm...
11/15/2007 COMMENCES BULK SAMPLING PROGRAM AT SONG JIAGOU
10/18/2007Increases Ounces By 285% TO 1.2 MILLION OUNCES AT SONG JIAGO...
2/16/2007RELEASES UNDERGROUND DRILL RESULTS AT SONG JIAGOU
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