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moto goldmines review letter

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    Update regarding the DRC Mining Review

    PERTH, WESTERN AUSTRALIA, Moto Goldmines Limited ("Moto") announces that, following the announcement by the Congolese government on 18 February 2008 that it has completed a review of the country's mining licenses, it has received written notifications from the Minister of Mines of the results of the revisitation of the contracts.

    These notifications have been received for the various sub-lease agreements with L'Office des Mines d'or de Kilo-Moto ("OKIMO") to which Moto's DRC incorporated subsidiaries, Borgakim Mining, Blue Rose, Gorumbwa, Kibali Gold and Tangold are a party, and the Technical and Financial Assistance Agreement (the "ATF agreement") between Borgakim Mining and OKIMO. Moto is still awaiting notifications in respect of the Amani and Rambi sub-leases.

    The notifications set out a number of elements of the agreements which the Commission has identified for review and outlines how these provisions should be amended. Responses have been requested by 20 February 2008, although there has been informal indications that this time period can be extended.

    The key points being requested by the Government in relation to the agreements are summarised as follows:

    # THE LEASE CONTRACTS ARE TO BE REGISTERED WITH THE MINING Registry, pursuant to the Mining Code and regulations;

    # THE MOTO DRC INCORPORATED SUBSIDIARIES ARE TO REGULARISE THE payment of the surface rights as from 2003 to date;

    # LEASE RENTS ARE TO BE REVIEWED UPWARDS;

    # THE GEOGRAPHIC COORDINATES OF THE DEPOSITS ARE TO BE CLEARLY specified;

    # THE FEASIBILITY STUDY FOR THE PROJECT IS TO BE PROVIDED TO THE Government. This study shall, in particular, identify and assess the real participations of the parties in the joint venture to be created with a view to an equitable allotment of the shares in that joint venture;

    # THE JOINT VENTURE TO SET OUT A SCHEDULE OF THE SOCIAL ACTIONS to be implemented and communicate this to the Government prior to any actions being performed;

    # THE PARTNER TO PAY A LEASE PREMIUM AND ROYALTIES ON THE GROSS revenues;

    # OKIMO IS TO TAKE AN ACTIVE PART IN THE DAILY MANAGEMENT OF THE joint venture to be created; and

    # THE SUB-LEASE AGREEMENT WITH TANGOLD IS TO BE CANCELLED AND arrears of rentals paid (this sub-lease was agreed to be cancelled in an agreement with OKIMO in November 2006 and arrears of rentals paid).

    In addition in respect of the ATF agreement the following additional points have been noted:

    # BORGAKIM MINING IS TO COMPLY WITH ITS OBLIGATIONS RELATING TO the rehabilitation of the mining, metallurgical and energy infrastructures in accordance with the ATF agreement;

    # THE PARTNERS ARE TO CLARIFY ANY CONFUSION BETWEEN, ON THE ONE hand the technical assistance and on the other hand, the joint venture project for the mining exploration and exploitation; and

    # THE SITUATION OF THE OKIMO DEBT TO BE TAKEN ON BY BORGAKIM Mining is to be clarified.

    Moto's subsidiaries, Amani and Rambi are still awaiting receipt of notification letters in respect of their sub-leases. However, Moto notes that it was agreed with OKIMO in November 2006 that the mining areas covered by the Amani sub-lease and a portion of the area covered by the Rambi sub-lease should revert to OKIMO.

    Since the Commission started its work the Moto group has completed its feasibility study and a report prepared in accordance with Canadian National Instrument 43-101 has been lodged on SEDAR, it has paid the requested arrears of rents on the areas for which OKIMO's title has been registered with the DRC Mining Registry and it has started working with OKIMO to have the sub-leases registered with the DRC Mining Registry. In addition a number of the points which have been raised have been previously dealt with between OKIMO and Moto in a protocol agreement between the parties signed in November 2006.

    Moto proposes to submit its formal response with the Minister of Mines as soon as practicable and thereafter to obtain approval from the Minister of Mines to commence discussions with OKIMO.

    Moto confirms that no resources included in its most recent resource update and feasibility study reside within the area which is to revert to OKIMO.

    For further information please contact:


    Andrew Dinning Mark Arnesen
    President and Chief Operating Officer Financial Director and Chief Financial Officer
    Tel: +61 8 9273 4222 Tel: +61 8 9273 4222
    email: [email protected] email: [email protected]

    Moto Goldmines Limited website: www.motogoldmines.com.


    Nominated advisor for the purposes of AIM: RFC Corporate Finance Ltd
    Jamie Wright
    Tel: +61 8 9480 2508
    email: [email protected]

    Additional Notes: As a consequence of the notifications Moto has received and anticipates receiving, Moto may be required to enter into discussions or negotiations with OKIMO or the DRC Government regarding its rights with respect to the Moto Gold Project. No assurance can be given as to the outcome of such discussions or negotiations or that the Moto Group's security of tenure and its ability to secure additional financing in the future may not be adversely affected so as to have a material adverse effect on the Moto Group's business, operating results and financial position.
 
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