MacDonald Mines: James Bay Property Status and Exploration Update

August 11, 2009

MacDonald Mines Exploration Ltd. (TSX Venture:BMK) ("MacDonald or the "Company") would like to provide a property and exploration update. MacDonald Mines holds over 88,000 hectares of quality land position in the James Bay Lowlands, McFauld’s Lake area. The Company has since reacquired a 100% interest in its Big Mac Property that was previously joint-ventured with White Pine Resources.

MacDonald Mines is looking closely at its Hornby Property (a 54/46 joint venture with Temex Resources) located adjacent to the Fancamp Exploration, Spider/Freewest/KWG and Noront Resources claims. Over the past few years, this highly mineralized but localized area has produced some spectacular drill intersections of nickel/copper/PGE as well as chromite mineralization.

Exploration Data Update & Overview

A review of available geophysical data would indicate that the chromite horizons defined by Freewest and its partners would pass through the northwest corner of both MacDonald’s Hornby East and Hornby West claim groups. Drill holes very close to MacDonald Mines northern Hornby claim boundary have reported chrome values of some significance.

An untested AEM response located in the northwest part of the Hornby East Claims displays a coincident magnetic signature that sits on the boundary of the Fancamp claims. It is quite possible that this represents a part of the sequence that hosts chrome mineralization.

Spider Resources McFauld’s Anomaly #7 represents a VMS target. The interpreted strike extension of this target further to the south and west lies within MacDonald’s East Hornby Claim Group.

The Company is currently reviewing its complete database of exploration results from the area.
A comprehensive review of the 100% owned McNugget and Big Mac Properties, as well as all of our joint-ventured properties, with special emphasis on those that are proximal to Noront, is currently underway with the objective of finalizing an exploration program and budget.

Drilling Campaigns Show Nickel Mineralization over Significant Widths

MacDonald’s drilling campaigns in 2007 and 2008 did intersect low-grade nickel mineralization over significant widths in several locations on the McNugget Property. Ultramafic rocks have been intersected and by interpretation this would indicate a potential to host both nickel/copper and chrome mineralization. Hole MN07-39 intersected 0.36% Ni over 4.5 metres and 0.26% nickel over 27 metres in a gabbro unit. Hole MN07-46 encountered peridotite throughout its entire 170 metre length and assayed 0.18% Ni over 112 metres, including 0.20% Ni over 41 metres in an ultramafic volcanic sequence which indicates that the base of the geological sequence is present on MacDonald’s property.

Significant Mining Experience and Expertise in James Bay Area

MacDonald Mines has over 6 years of exploration experience in the James Bay Lowlands and was one of the first-movers into the area along with Noront Resources and Spider/KWG. With exploration programs focused primarily in the Ring of Fire, the Company has compiled an extensive data base comprised of airborne surveys totaling over 10,000 line kilometers and 86 drill holes totaling in excess of 12,000 metres of drilling.

This knowledge combined with the information disseminated via news releases from Noront, Freewest, Spider/KWG and Probe, enable our seasoned team of technical personnel - F. W. Nielsen, P.Geo., Haydn Butler, P.Geo., Director, Randall Salo, P. Geo. Project Manager, and Taiga Consultants Ltd. to glean further insights into the James Bay geology to enhance future exploration opportunities.

MacDonald Mines Initiates Private Placement Offering

MacDonald Mines has engaged IBK Capital Corp. to raise $1,000,000 through the sale of 5,000,000 flow-through units ("FT Units") at $0.20 each in a brokered private placement. Each FT Unit consists of one common share of MacDonald to be issued as a "flow-through share" and one-half of one non-flow-through common share purchase warrant. Each common share purchase warrant will entitle the holder thereof to purchase one common share of the capital stock of MacDonald that is not a "flow-through share" at an exercise price of $0.25 per common share at any time for 2 years from the date of issuance. An additional $125,000 will be raised through a non-brokered private placement on the same terms and conditions as noted above.

In connection with this financing arrangement MacDonald will pay compensation to IBK Capital Corp. as follows: A cash commission of 10% of the amount raised, and 10% of the Units sold in the form of broker warrants (Broker Warrant). Each Broker Warrant entitles the holder to acquire one (1) Common Share of MacDonald at $0.20 per Common Share for a period of four (4) years from the date of issuance.

All securities to be issued in connection with this financing will be subject to a four month hold period from the date of issuance and to final regulatory approval.

About MacDonald Mines

MacDonald Mines is a mineral exploration company with an established history in the exploration of gold and base metals. MacDonald has set upon a strategic direction of exploration in the Canadian Northlands, with particular focus in Ontario, Saskatchewan and Quebec.
In 2008, MacDonald Mines was ranked second in the TSX Venture 50’s Annual Ranking of Top Canadian Mining Companies and trades under the symbol BMK.

Bill Nielsen, P. Geo., is the qualified person for the data in this release.

For more information, please contact

Email: info@macdonaldmines.com
Website: www.macdonaldmines.com/
(800) 818-5442
(416) 364-4986
(416) 364-2753 (FAX)

Brent Nykoliation

Vice President, Business Development

J. A. Kirk McKinnon
President & CEO

Richard Schler
Chief Operating Officer & CFO

WARNING: The statements made in this news release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from expectations and projections set out herein.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.