Mahdia Gold Corp (CNSX:MGD) Announces Closing of First Tranche of Non-Brokered Private Placement

TORONTO, ONTARIO--(Marketwire - Feb. 20, 2013) - Mahdia Gold Corp. (CNSX:MGD) (the "Company") is pleased to announce that further to its news releases of November 1, 2012 and January 3, 2013, the Company has closed the first tranche of its non-brokered private placement of 1,040,000 units at a price of CAD $0.25 per unit for gross proceeds of CAD $260,000 (the "Offering"). Each unit consists of one common share and one common share purchase warrant entitling the holder to purchase an additional common share at $0.40 for a period of two years from the closing date. All common shares issued in the Offering will have a hold period in Canada of four months and a day from the closing of the Offering. The Company did not pay a finder's fee in connection with the closing of the first tranche of the Offering. There will not be any change of control as a result of the Offering.

The net proceeds from the Offering are intended to be used to fund the Company's exploration activities in Guyana and for general working capital.

Completion of the Offering is subject to the acceptance for filing thereof by the Canadian National Stock Exchange.

About Mahdia Gold Corp.

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

Forward-Looking Statements

Information set forth in this news release may involve forward-looking statements under applicable securities laws. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this document are made as of the date of this document and the Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation. Although Management believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. This news release does not constitute an offer to sell or solicitation of an offer to buy any of the securities described herein and accordingly undue reliance should not be put on such. Neither CNSX Exchange nor its Regulation Services Provider (as that term is defined in the policies of the CNSX) accepts responsibility for the adequacy or accuracy of this release.