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Mahdia Gold Reports Production Increase in JV Operations

Mahdia Gold Corp. (the "Company") is pleased to announce 118.5 ounces of gold were produced in its joint venture operations this month, to net approximately 40 ounces, all from the existing equipment. An additional 75 ton per day wash plant has been added this past week and gone through a testing phase.

The Company has 2 joint ventures, and adding a third with the new wash plant. The interest in wash plants varies from 25% to 50% of production. The arrangement with one of our major joint venture partners have been changed where the Company is taking ownership of three dredges from which the Company will receive 100% of production in addition to 50% of production on the existing dredge under the joint venture. Its production and the increased production from all existing dredges are expected to continue with growing production each month.

The Company announces the resignation of Michael Galloro CA as Chief Financial Officer. The board wishes to thank Mr. Galloro for his service since being appointed September 26, 2012. His participation in Mahdia Gold has been very valuable and has helped the company tremendously.

The Company is adding dredge capacity to the operation to demonstrate it can feasibly maintain payments to the Guyana government and to establish consistent and growing production to meet conditions to obtain necessary funding for all its obligations. The changes have necessitated the suspension of a number of compensation contracts and the replacement of managerial and supervisory personnel on the operations site. The Company is in the process of changing to a lower level of fixed costs and closer cost control.

About Mahdia Gold Corp.

Mahdia is a Canadian-based gold exploration company with active gold prospects in Guyana, South America.

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