MOE Moelis Australia Pty Ltd

Moto Goldmines Limited ("Moto")(TSX:MGL)(ASX:MOE) is pleased to announce that it has entered into discussions with its joint venture partner OKIMO with the objective of simplifying the contractual arrangements governing the Moto Gold Project so that development of the project is more streamlined and increasing Moto's interest in the most prospective parts of the project. L'Office des Mines d'Or de Kilo-Moto, a Congolese company ("OKIMO") is a State owned mining company that is the registered holder of licences covering approximately 83,000 sq kms in the north east of the Democratic Republic of Congo ("DRC"). Subsidiaries of Moto are party to seven separate agreements with OKIMO in respect of approximately 5,375 sq kms of the licences held by OKIMO (the "Moto JV Area"). Under the current contractual arrangements, Moto is earning an interest of either 60% or 68.5% to mineral rights in the Moto JV Area, Orgaman sprl has an interest of either 10% or 11.5% and OKIMO has a 30% or 20% non-dilutable interest. Those portions of the Moto JV Area on which the majority of the resources have been identified to date are all areas in which Moto is earning a 60% interest. Moto and OKIMO have agreed to enter into discussions to simplify these contractual arrangements as follows: - The contractual arrangements between the parties would be simplified, with one agreement covering the entire Moto JV Area. - Moto would increase its interest in certain areas where the majority of the currently identified resources are situated. The revised percentage interests to be held have yet to be agreed, but it is envisaged OKIMO's interest would not be less than 20%. - OKIMO would receive consideration (represented by cash and shares) for the sale of such interest. The amount of the consideration to be paid to OKIMO has yet to be agreed. - Mr. Victor Kasongo, the Chief Executive Officer of OKIMO, would join the board of Moto. - The terms of a detailed shareholders agreement to govern the rights of the parties upon completion of a detailed feasibility study will be agreed. - Moto will return some of the JV Area to OKIMO. Any ground returned to OKIMO will not include ground upon which or which is along strike of identified gold resources or upon which Moto has undertaken drilling activities. Any agreement that is reached will be subject to the approval of relevant DRC authorities and any other regulatory approvals required. While Moto is hopeful discussions with OKIMO can be concluded during the second quarter of 2006, there can be no assurance regarding the timing of concluding the discussions, the final nature of the agreements or that Moto and OKIMO will successfully conclude an agreement. The discussions commenced as a result of OKIMO indicating it wished to renegotiate certain aspects of the existing agreements. While Moto has no legal obligation to do so, Moto believes that the proposals being discussed, if satisfactorily concluded, will improve the interests of and strengthen the relationship between the two parties, as well as simplify the ownership structure and contractual arrangements so that development of the project is more streamlined. As previously announced, Moto has commenced preparation of a pre-feasibility study (expected for mid-2006) and, if positive, Moto would moves towards completion of a detailed feasibility study during 2007. Caution Regarding Forward Looking Statements: Statements regarding the Company's plans with respect to negotiating an increase in its interest in and developing the Moto Gold Project are forward-looking. There can be no assurance (i) regarding the timing of concluding the discussions, the final nature of the agreements or that the discussions will be concluded in a form that is satisfactory to the parties involved; and (ii) that any mineralisation will be proven to be economic, that anticipated metallurgical recoveries will be achieved, that future evaluation work will confirm the viability of deposits identified with the project or that future required regulatory approvals will be obtained. Moto Goldmines Limited (TSX:MGL) (ASX.:MOE)