Majestic Gold Corp.: Gold Production Update

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 02/24/12 -- Majestic Gold Corp. (the "Company") (TSX VENTURE: MJS)(FRANKFURT: P5E) is pleased to announce quarterly gold production results of its Chinese subsidiary, Yantai Zhongjia Mining Company Limited ("Zhongjia") at the Song Jiagou property for the past five fiscal quarters beginning October 1, 2010 and ending December 31, 2011.

The following table highlights information relating to the operations at the Song Jiagou project:

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                                                                    Quarter
                             Quarter Ended                  Total     Ended
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                31-Dec-10 31-Mar-11 30-Jun-11 30-Sep-11   FY 2011 31-Dec-11
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Milled (t)        116,584   118,488   284,131   454,183   973,386   397,739
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Head grade
(g/t)               0.364     0.262     0.309     0.277     0.295     0.330
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Effective grade
(g/t)               0.368     0.338     0.279     0.387     0.347     0.427
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Concentrate
produced (t)        1,255     1,084     2,693     6,653    11,685     6,009
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Gold in
concentrate
(kg)                37.14     34.13     65.13    153.58    289.99    150.35
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Gold for Sale
(kg)                34.54     31.75     60.57    142.83    269.69    139.83
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Gold for Sale
(oz)                1,111     1,021     1,947     4,592     8,671     4,496
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Gold Sold (kg)      37.65     28.35     58.88    105.22    230.10    120.10
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Gold Sold (oz)      1,211       912     1,893     3,383     7,398     3,861
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Notes:

--  Increase in tonnes milled between the quarter ended 31-Mar-11 and the
    quarters ended 30-Jun-11 and 30-Sep-11 was a result of the commissioning
    of the new 6,000 tpd mill in May 2011. This mill was operated at various
    levels to properly test and fine-tune its operation through to the end
    of June.

--  Effective grade is the net real grade or the mill through-put and is
    calculated by taking the sum of gold in concentrate plus gold lost to
    tails and dividing by tonnes milled. This grade has been significantly
    higher than the assayed values of the head grade. It is believed to be a
    result of a significant free-gold component in the rock, which results
    in the nugget-effect on samples. The Company is looking to implement
    more detailed head grade sampling and assay procedures in an effort to
    reduce this error. (There is a good chance this error also occurs in the
    drill holes, as it is very hard to get representative holes).

--  The slight decline in tonnes milled for the period ended 31-Dec-2011 is
    a result of the mill being shut down for maintenance for 7 days in
    October 2011.

--  Total mill throughput averaged 4,925 tpd for the six months ended 31-
    Dec-11 or approximately 66.5% of total capacity.

--  Gold production results were in line with the block model estimates and
    schedule provided by Wardrop in the Preliminary Assessment Technical
    Report ("PEA Report") released January 20, 2011. The Company is
    currently producing from areas considered to be waste in the PEA Report
    but given the price of gold and the contract mining agreement it has
    been determined that this material can be mined and generate positive
    cash flows. Once this material has been removed and either milled or
    stockpiled, the Company will commence mining the higher-grade material
    situated below it. During the calendar year ended December 31, 2011, the
    Company was processed all of the material that was mined from the pit.
    This was due to the lack of land where waste or low-grade material could
    be stockpiled. Recently, the Company secured an area to dump waste and
    low-grade material and plans are being initiated to increase the total
    tonnes removed from the pit. Majestic will continue to process the low-
    grade material to generate cash flows but expects to see a slow and
    steady increase in throughput and grade.

The geological and technical information contained in this news release has been reviewed and approved by Mike Hibbitts, P.Geo., who is a qualified person under the definitions established by National Instrument 43-101.

On Behalf of the Board of Directors

MAJESTIC GOLD CORP.

Rod Husband, P.Geo, President

This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contacts:
Majestic Gold Corp.
Investor Relations
[phone] or 1-866-282-8398
[phone] (FAX)
[e-mail]
www.majesticgold.net