BMK MacDonald Mines Exploration Ltd

MacDonald Mines Exploration Ltd. (TSX VENTURE:BMK) ('MacDonald' or 'the
Company') provides a mining industry update and an outline of its drill program
scheduled for early 2013 to advance its potential VMS discovery at the highly
prospective Butler 3 location (see Figure 3). The Butler property is located 36
kilometres west of Cliffs Natural Resources ('Cliffs') Big Daddy Chromite
deposit (Click here for map). 


Kirk McKinnon, President and CEO of MacDonald Mines comments, "As we enter 2013,
MacDonald Mines believes it is important to provide a current backdrop for
junior mining exploration companies. We find it extremely ironic that both the
Prime Minister and the Ontario Premier have outlined natural resources as a
prime catalyst for growth in the country and in the province of Ontario
respectively. Specifically, Premier Dalton McGuinty outlined the James Bay
Lowlands and Natural Resources as a prime catalyst for growth within the
province. With this as a backdrop, we wonder why large trading institutions are
allowed to impact junior mining stocks with high frequency trading (as profiled
in the Financial Post, October 10, 2012 and the Huffington Post) and also
receive trading credits from the TSX in return for placing bids. We are aware
high frequency trading is active in the United States but has been banned in
some jurisdictions. It has less impact in the United States because of the sheer
critical mass in the number of stocks and the number of shares in their trading
jurisdictions. Compounding this, large Canadian national banks have certainly
discouraged, and all but disallowed, any trading in junior mining stocks. This
makes it extremely difficult for their clients to even consider these stocks as
part of their overall portfolio or as opportunities for making money. We realize
that exploration stocks are high risk and do require some expertise and insight
on the part of shareholders but they can also play a role in a balanced
portfolio where it constitutes a small percentage of the total investment. 


"So what is happening to junior exploration companies? In capsulated form,
financings are becoming increasingly difficult to arrange, the stocks are at
much lower prices versus historical levels; mostly because credible information
and exploration success is not resonating and consequently the junior resource
stocks have little or no resulting upward movement. The consequence of this is
that much needed financings for exploration activity are now being transacted at
historical low prices, creating an environment of super-dilution and a growing
lack of interest for investment in this sector. The result: investors are moving
away to similar types of investment opportunities in the high-tech and bio-tech
industries.


"There are dire predictions that over half of the junior mining companies will
disappear within the next few years (see articles from mining industry analysts
and writers Brent Cook and John Kaiser) MacDonald is not sure whether our
political leaders realize or care that the disappearance of such a large amount
of these companies will constitute major layoffs in personnel and the country
will likely lose key exploration scientists such as geologists and geophysicists
whose experience, as well as the ongoing opportunity for experience, will be
gone forever. Equally important, Canada will lose a significant portion of an
industry whose participants today are recognized as the world's best. 


"We have seen and heard comments from both the OSC and IROC. These have been
bolstered by a number of newspaper articles and they all allude to or say one
thing - the playing field is not level and the large and wealthy have a decided
edge. We are seeking to nurture a healthy equitable business environment for all
potential shareholders, not one that favors a chosen few. 


"Most discoveries come about through small exploration companies as they are
more nimble, and focus solely on discovery. If they disappear, so will this
focus. So here is the question: How can a business sector that is being this
decimated be the prime driver for growth in Canada and the province of Ontario?
It won't be and this sought after exploration success will significantly
diminish. We could go on at great length but the solutions to arrest this
problem could be quick and relatively easy: 


"1. Stop the high frequency trading,

"2. Do not allow allocation for bid credits, 

"3. Allow easier access for bank customers to buy a small portion of their
portfolio in junior exploration stocks, 


"4. Mandate that the banks have their analysts look at these smaller companies
with the objective of grading and rating them and not just a singular focus on
the large, mature mining deals. This would enable clients and potential
investors to better evaluate stocks, companies and projects in the junior mining
sector for consideration as part of their portfolios.


"The Federal Government could look at increasing flow-through tax relief, which
today is an excellent stimulant for exploration, to bring more focus back to
this important exploration sector. We should also look at disallowing short
selling for all stocks less than one dollar. It is important that investors be
made aware and have some understanding of what companies such as MacDonald Mines
are facing as we strive continue to develop our projects. Hopefully these
comments will resonate, for they are indeed relative to the growth of the
country and the province of Ontario.


"Exploration is difficult, especially in an economic climate such as this, and
requires a high degree of tenacity. MacDonald is fortunate that it has
assembled, over the years, an ever-growing compliment of exploration scientists
with a management team focused on success. We are extremely grateful that we
have continued to be funded by people who understand our dedication and focus on
the prize. We are well financed for the next round of exploration and we are
counseled by some of the brightest minds in this sector and have highly
professional, seasoned exploration geologists leading all facets of the direct
exploration process. It is not good luck that brings exploration success - it is
good targets selected with quality data that is managed by highly experienced,
insightful exploration scientists and geologists who understand how to continue
to move a project forward in spite of the challenges that are inherent with
looking for these large and worthy prizes. 


"MacDonald is now set to enter a new phase of exploration in 2013. Over the past
eight years, we have tenaciously focused on making an exploration discovery in
the James Bay 'Ring of Fire' region. Most exploration scientists believe there
are great resources to be found in this very challenging environment. This
shouldn't be surprising as all of the 'low hanging fruit,' as relates to
exploration success, has likely been realized but on the other side the
potential rewards are huge."


Returning to James Bay with Strength of Drilling Data and Increased Exploration
Knowledge


MacDonald has painstakingly, with some setbacks, acquired what we now believe to
be the necessary amount of exploration knowledge that will allow for the kind of
success we strive for. Our exploration goal is delineating a Kid Creek-type of
target. Kidd Creek is one of the world's largest Cu-Zn VMS deposits, and it is
the Company's belief that success is near at hand for the following reasons:


Similar Geologic Setting to Kidd Creek

The Butler Property has similar geological conditions that existed for the
formation of Kidd Creek-type mineralization. The Butler 3 geological sequence
consists of a slightly overturned east-facing assemblage of predominantly felsic
volcanic strata, underpinned by a thick sequence of mafic and ultramafic strata,
and a major synvolcanic ultramafic intrusive complex. This is the same
geological setting identified at the Kidd Creek deposit. 


At Butler 3 (See figure 3), MacDonald has observed the following similarities to
the Kidd Creek Deposit:




--  A large mafic/ultramafic sub volcanic heat source 
--  Submarine felsic volcaniclastic strata 



Additional Characteristics of a Large VMS System Present



--  Intense hydrothermal alteration forming a "feeder" system to Zn-Cu-Ag
    mineralization: in particular, Mn-rich carbonate and an extensive zone
    of anthophyllite, cordierite-biotite-muscovite-staurolite alterations
    all increase in strength to the east 
--  A large copper-rich stringer system, overlain by multiple bands of
    stratiform Zn-Ag mineralization observed in the nearest drill hole, is
    remarkably similar in form to VMS deposits in both the Sturgeon Lake
    district and the Chisel Basin portion of the Snow Lake camp 



To view Figure 1, please visit the following link:
http://media3.marketwire.com/docs/bmk0109fig1.pdf.


The geophysical signatures are consistent with the mineralization already
discovered on Butler 3 - with the exception that the footprint to the east and
below hole BP12-11 (see figure 2) is much larger, including: 




--  A gravity anomaly of greater size and density than drilled historically
    (see figure 1) 
--  The magnetic signature is consistent with that observed over the known
    mineralization at Butler 3 
--  EM conductors are coincident with the gravity anomaly 



Cautionary statement: There is no certainty that further exploration will lead
to the discovery or development of a mineral deposit the size or nature of Kidd
Creek.


To view Figure 2, please visit the following link:
http://media3.marketwire.com/docs/bmk0109fig2.pdf.


The next phase of drilling will focus on previously untested areas adjacent to
the new discoveries made this fall. This area exhibits positive geophysical
characteristics and corresponding geochemical vectors for major VMS
mineralization to the east of the historic drilling.


MacDonald has mobilized a geophysical crew to conduct surface electromagnetics
(Crone Geophysics) and detailed ground magnetics. This data is considered to be
the final step in prioritizing our drill targets. The electromagnetic (EM)
survey is designed to map any conductive features associated with the gravity
anomaly east of our historic drill program.


To view Figure 3, please visit the following link:
http://media3.marketwire.com/docs/bmk0109fig3.pdf.


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 copper, zinc, vanadium, nickel
and titanium in the "Ring of Fire" area of the James Bay Lowlands of Northern
Ontario. 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
Ltd. 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.


FOR FURTHER INFORMATION PLEASE CONTACT: 
MacDonald Mines Exploration Ltd.
Brent Nykoliation
Senior Vice President, Corporate Development
(416) 364-4986
(416) 364-2753 (FAX)
bnykoliation@macdonaldmines.com


MacDonald Mines Exploration Ltd.
Kirk McKinnon
President & CEO
(416) 364-4986
(416) 364-2753 (FAX)
kmckinnon@macdonaldmines.com
www.macdonaldmines.com

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