MacDonald Mines Exploration Ltd. (TSX VENTURE:BMK) ("MacDonald" or the
"Company") reports that it continues to analyze and refine the results of its
most recent exploration program on the Butler Property drill targets in the Ring
of Fire. 


MacDonald has now reached the point where its exploration knowledge and
experience have vectored in on three large exploration targets. These targets
represent the culmination of intensive study derived through scientific
assessment (geological, geophysics and geochemistry) and previous drilling. The
Company will target 3 different minerals with drill programs planned for each
commodity: Volcanic Massive Sulphides ("VMS") - Copper/Zinc, Nickel and Chrome.
The Butler property hosts an abundance of target areas that require and merit
more in depth exploration. The three targets we intend to drill are the most
advanced and offer the best opportunity for success.


The following is a brief review of each target. 

VMS - Butler 3 

Two diamond drill holes targeting two distinct Induced Polarization ("IP")
responses were completed during May 2012 (BP12-Cu08 and BP-Cu09). The IP targets
were explained by intersections of disseminated sulphides and significant
magnetite. The Company expected better intersections consisting of more copper
rich sulphides, however the drill holes intersected highly altered rocks and
anthophyllite alteration was pervasive in these two holes.


As previously released, the Butler 3 area exhibits the alteration
characteristics of a large VMS system BP12-Cu08 & 09 intersected the first
extensive intersections (hundreds of metres) of anthophyllite. The abundance of
this type of alteration should be proportional to the size of the VMS system
(massive sulphides).


A third hole (BP12-Cu10) was drilled on a time domain and magnetic
susceptibility target. BP12-Cu10 intersected 18 metres of stringer sulphide
mineralization from 383-402 metres down hole (approximately 320 metres vertical
depth). The primary rock type was rhyolite suggesting the stringer
mineralization is beneath the core of the expected VMS core. Of particular
interest were elevated arsenic and lead values measured with an XRF unit. Assay
results are pending.


Based on the above drilling results, the Insight Survey (DCIP) and various time
domain results have been refined. Visual observations and galvanic measurements
of the massive sulphide materials intersected at Butler 3 have confirmed that
these materials are not as conductive as expected. Interstitial silica prevents
the more massive sulphides from acting as a strong Electro-Magnetic ("EM")
conductor - however the IP and resistivity affects are significant. It has
become apparent that the EM anomalies are coincident/defines the edges - or
stringer mineralization - and not likely mapping the more massive sulphides.


Butler 3 IP Drill Target Bound by EM Anomalies 

With this interpretation of geology, geophysics and geochemistry the Company has
expanded the zone of interest at Butler 3 to the North East in the direction of
Butler 2. The revised interpretation outlines a large IP target bounded by EM
conductors. The target extends from 18 metres below surface to depths greater
than 200 metres and is approximately 200m x 450m in lateral extent. The IP
anomaly remains open to the North - and this is where the current IP survey is
being conducted. There has been no drilling into this target. Previous
intersections of mineralization (BP11-Cu06) are along the south-western limit of
the IP anomaly. 


Diamond drill hole BP11-Cu06 intersected 167 metres of 0.39% Cu copper and 1.13%
Zn. Intervals within this drill hole were:




--  11.50m of 1.15%Cu (208.5m-220m) 
--  50.5m of 3.62% Zn including 9m of 6.88% Zn (169.5m-220m) 



Drilling will commence on this target once the IP/resistivity results are
finalized. For a visual representation of Butler 3 please click here.


Butler 3 shows the traditional complexity of lithology, structure and alteration
over-print of a VMS system. The following observations at Butler 3 have been
reinforced by the last drill results: 




1.  The volume of alteration is exceptional, indicating that a very large
    volume of hydrothermal fluid discharged in this region.  
2.  Butler 3 is contained in a felsic-dominated sequence. The apparent
    resistivity values collected are typical of these types of rocks. 
3.  The alteration zone is Cu-enriched, and the Cu tenor is high (greater
    than 3%). The DCIP chargeability modeling indicates anomalies typical of
    increased sulphides. 



Nickel - Butler 5 

Three drill holes BP12-Ni01, 02 and 03 were targeted at geophysical anomalies
believed to be related to nickel sulphide environments. BP12-Ni01 and 03
targeted a moderate IP anomaly in an area proximal to known nickel sulphide
mineralization encountered in drill hole MN07-039 in 2007. Although the proximal
2007 mineralization was hosted in gabbro, the 2012 holes intersected mainly
ultramafic rocks (peridotite and dunite). In the Ring of Fire, it is these
ultramafic rocks that host the known nickel deposits. The IP anomalies were
explained by intersections of disseminated sulphides that have been sent for
assay.


Geologic, EM, IP and Gravity Nickel Target 

Patches of magmatic sulphides (nickel) were observed in the ultramafic rocks. In
addition the drill holes were also observed to contain a pervasive magmatic
brecciated appearance and localized intense hydrous alteration zones. A strong
off-hole electromagnetic anomaly was detected in BP12-Ni01 vectoring towards
proposed drill hole BP12-Ni04, which is in an area containing coincidental
airborne electromagnetic and gravity anomalies. 


BP12-Ni02 was drilled in the central portion of Butler 5 to test the
significance of a prominent north-east trending linear magnetic low with
localized moderate IP anomalies. The gabbroic rocks encountered through the
entire hole (BP12-Ni02) are noteworthy in that they contain abundant (10-15%)
rounded to sub-rounded, melted to partially melted inclusions of basement
granodiorite. The ubiquitous nature of these inclusions in the gabbro indicates
that the host/parental magma experienced significant silica and alkali element
contamination. This type of contamination is a well-known magmatic factor
causing sulphides and oxides (chromite, Fe-Ti-V oxides) to segregate from magmas
and form deposits. The localized IP anomalies associated with this gabbroic
horizon were explained by vein and fracture filling sulphides. 


Assay results for the above mentioned holes are pending.

Dr. Larry Hulbert, a consultant to the Company stated "the discovery of new
ultramafic rocks with pronounced magmatic breccias, strong alteration and
localized magmatic sulphides, and a strong off-hole EM anomaly vectoring towards
proposed hole BP12-Ni04 in an area proximal to the best nickel sulphide
mineralization discovered on the Butler property to date is most encouraging.
The presence of pervasive melted country rock inclusions in the thick central
Butler 5 gabbro body intersected in BP12-Ni02 has strong magmatic sulphide and
oxide implications (nickel)".


Chromite - Butler 5 

Two drill holes (BP12-Cr01 and Cr02) targeting a very strong and large
coincident airborne and ground gravity anomaly believed to be part of the
Dunite-Peridotite-Pyroxenite-Gabbro package that hosts chromite deposits similar
to that associated with the "Big Daddy" and "Black Thor" deposits. The most
recent joint airborne gravity gradiometer survey commissioned by the Ontario
Geological Society & Geological Society of Canada identified a density anomaly
on Butler 5 that has the greatest measured amplitude for the entire airborne
survey conducted over the Ring of Fire region. The gravity signature of this
anomaly is greater in size than that over the known chromite deposits in the
Ring of Fire. 


Both holes drilled extensive thicknesses of gabbro similar in appearance and
thickness to the outer "Gabbro" unit in the above-mentioned
Dunite-Peridotite-Pyroxenite-Gabbro package reported at the current Chrome
deposits in the Ring of Fire. 


Constrained Gravity Model and Geology Confirms Chromite Target 

Specific gravity measurements were taken of the core from BP12-Cr01 and Cr02. A
constrained model of the ground gravity survey data and magnetics for the area
indicates that holes BP12-Cr01 and Cr02 were collared on the edge of the gravity
anomaly and drilled away from the stratigraphic interval that should host chrome
mineralization.


Based on the information gained from BP12-Cr01 & Cr02 - BP12-Cr03 will be
collared west of BP12-Cr01 and drilled in the opposite direction to intersect
the density (gravity) anomaly. BP12-Cr03 will target the entire
Dunite-Peridotite-Pyroxenite package and if a chrome horizon exists along this
greater than 1km long density feature it should be intersected. 


Qualified Person 

Quentin Yarie, P.Geo., is the qualified person in regard to the technical data
contained within this news release and will be responsible for overseeing all
aspects of the Company's exploration programs.


About MacDonald Mines Exploration Ltd. 

MacDonald Mines is a mineral exploration company with an established exploration
history in the Canadian Northlands. MacDonald Mines has set upon a strategic
direction of exploration with particular focus on nickel, chrome, copper, zinc,
vanadium and titanium in the "Ring of Fire" area of the James Bay Lowlands of
Northern Ontario. 


The Company has established rapport with First Nation Communities in this
region, which has culminated in the signing of exploration agreements with the
Kasabonika Lake and Webequie First Nations.


More detailed information about the Company is available on the website:
www.macdonaldmines.com. 


Cautionary Statement: 

The foregoing information may contain forward-looking statements relating to the
future performance of MacDonald Mines Exploration Inc. Forward-looking
statements, specifically those concerning future performance, are subject to
certain risks and uncertainties, and actual results may differ materially from
MacDonald Mines plans and expectations. These plans, expectations, risks and
uncertainties are detailed herein and from time to time in the filings made by
MacDonald Mines with the TSX Venture Exchange and securities regulators.
MacDonald Mines does not assume any obligation to update or revise its
forward-looking statements, whether as a result of new information, future
events or otherwise. We seek safe harbour.


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