Larry W. Reaugh, Chairman and Chief Executive Officer of Molycor Gold Corp. (TSX.V-MOR; Frankfurt-M1V; Pink Sheets-MLYFF)(�Molycor� or the �Company�) is pleased to report the Company�s proposal to complete additional work on the Tami Mosi Magnesium project located 6.5 km south of Ely, Nevada.

 

The proposed financing announced March 29, 2010 will enable the Company to complete the first phase of metallurgical work by Hazen Research as well as increase the size and integrity of the Tami Mosi magnesium resource.

 

About the Tami Mosi Magnesium Project:

 

The property consists of 119 unpatented mineral claims within an area of 2,700 acres in White Pine County, Nevada.  The discovery of high purity magnesium was made by Molycor in March of 2008 while drilling gold anomalies on the project.  Twelve (12) holes were drilled over a 2,600 meter (8,600 ft) strike length with thicknesses up to 164 meters (540 ft) grading 11.4% Mg (19.0% MgO).  In July, 2009 a NI-43-101 Resource Study was completed by N. Tribe & Associates Ltd. of Kelowna, B.C. as follows:

 

Utilizing a 8.00% cit-off

	Tonnage	Grade	Pounds Mg
Inferred	236,183,772	10.00%	51,748,568,012

 

The Company engaged Teck Cominco Global Discovery Labs to analyze a 9.2 meter (30 ft) section of hole #TM-07-13, from 270 � 300 feet (82.3 m � 91.5 m), for purity of the dolomite.  Hole #TM?07-13 averaged 11.4% Mg (18.6% MgO) over 164.4 meters (540 ft).  Results returned a high purity form of dolomite that is virtually identical with the National Bureau of Standards (�NBS�), �Standard 88B�.

 

Sample	Si02 %	Ti02 %	Al203 %	Fe203  %	Mn0 %	Mg0 %	Ca0 %	Na20 %	K20 %	P205 %	Ba %	L0I %	Total %
Hole #TM-07-13 270ft - 300ft	1.25	0.01	0.22	0.10	0.01	20.95	29.91	0.01	0.01	<0.01	<0.01	46.78	99.27
NBS " Standard 88B"	1.15	0.02	0.35	0.30	0.07	21.14	29.79	0.01	0.03	0.01	<0.01	46.93	99.80

The Tami Mosi magnesium dolomite compare closely to five past producers in North America, Europe and Japan as reported by �Composition of Dolomite� report by Magnesium.com.

 

After extensive research on concentrator methodology for producing magnesium metal, the Company investigated several research labs proposals and has settled on engaging Hazen Research Inc. to initiate a process development study for exploitation of the Tami Mosi magnesium project.

 

On the successful completion of the Company�s current private placement of up to 12 million units at $0.07 per unit the Company will begin to implement the following plan:

 

Complete the contemplated drilling program to increase and define the NI43-101 resource.Develop a time line to move the project to final feasibility.Initiate a NI43-101 preliminary economic study to evaluate the economics of moving the project forward.Obtain qualified personnel to begin the process of final feasibility reports, environmental permitting and socio-economic studies.

 

The Company will continue to explore the Tami Mosi including drilling to further define the existing NI43-101 resource.

 

In late 2009 the Company completed drilling on two gold projects in British Columbia as follows:

 

British Columbia - Flap Gold Property (50% Goldrea / 50% Molycor)

 

The Company completed 771 meters of trenching and drilled 4 reverse circulation exploration drill holes totaling 730 meters on the Flap stockwork gold zone measuring 300 x 200 meters (885 ft x 666 ft).  Earlier drilling and trenching by Rea Gold Corp. returned up to 76.73 grams/tonne Au (2.25 opt Au) over 1 meter (3.3 ft) in Diamond drilling and 17.8 � 25.6 grams Au/t (0.5 - 0.75 opt Au) in chip samples from the surface (reported by Gary Medford PhD/Rea Gold Corp. (�Rea�) Feb 18, 1989).  The drill hole program was designed to offset a potential nugget effect by increasing the size of the drill holes and the size of the samples assayed.

 

Results from the program returned:

 

TRENCHES	FROM M	TO M	WIDTH M	GOLD GPT
T2S	3.00	6.00	3.00	0.43
T2S	21.00	24.00	3.00	0.33
T2S	206.00	209.00	3.00	0.36
T3S	317.00	320.00	3.00	0.38
PREVIOUS DDHS
DDH88-4	146.00	146.30	0.30	0.73
DDH88-6	211.00	211.91	0.91	1.61
NEW RPRC HOLES
RDH09-01	48.80	51.85	3.05	0.66
RDH09-01	57.90	62.47	4.57	0.46
RDH09-01	73.20	76.25	3.05	0.38
RDH09-01	76.20	79.25	3.05	0.73
RDH09-01	82.30	83.82	1.52	0.78
RDH09-01	102.00	103.52	1.52	1.47
RDH09-01	148.00	149.52	1.52	0.31
RDH09-02	68.60	70.12	1.52	0.31
RDH09-02	74.70	77.75	3.05	0.58
RDH09-02	116.00	119.05	3.05	1.45
RDH09-02	130.00	131.52	1.52	0.38
RDH09-02	137.00	138.52	1.52	0.31
RDH09-03	4.57	9.14	4.57	0.47
RDH09-03	79.20	80.72	1.52	0.38
RDH09-03	114.00	115.52	1.52	0.81
RDH09-03	117.00	117.52	1.52	0.42
RDH09-04	53.30	54.82	1.52	0.34
RDH09-04	62.50	64.02	1.52	0.57
RDH09-04	85.30	86.82	1.52	0.82

 

Samples were prepared and analyzed by ALS Chemex, Vancouver, British Columbia.

 

These results are selected to evaluate the potential for an underground vat leach configured operation and the grades chosen for the table reflect that fact.

 

 

The Company completed 12 BQ thin walled Diamond drill holes totaling 1,288 meters (4,226 ft).  See the press release dated November 3, 2009 for results.  The thickest intercept averaged 0.83 g/t Au (0.024 oz/t Au) over an intercept of 10.67 meters (35.0 ft).

 

 

Molycor is a diversified precious, speciality and base metal exploration and development company focusing on magnesium, molybdenum and gold exploration and development in North America.

 

This release was reviewed by Norman L. Tribe, P.Eng. a qualified person recognized under National Instrument 43-101.

 

On Behalf of Management

 

Larry W. Reaugh
Chief Executive Officer

 

For all Molycor Gold Corp. investor relations needs, investors are asked to visit the Molycor Gold Corp. website at www.molycor.com.

 

Larry W. Reaugh

Chief Executive Officer

Head Office: 2A 15782 Marine Drive, White Rock, B.C.  V4B 1E6

Telephone: 604-531-9639    Facsimile: 604-531-9634
Email: info@molycor.com