Mahdia Gold Corp. Announces Closing of Private Placement and AMEC's Water and Silt Sampling Results

TORONTO, ONTARIO--(Marketwire - April 12, 2012) - Private Placement Closed. Further to its news releases of August 29, 2011, December 13, 2011, January 3, 2012, March 19, 2012 and March 30, 2012, announcing a private placement to raise up to $8,000,000, Mahdia Gold Corp MGD ("Mahdia" or the "Corporation"), is pleased to announce that the private placement has closed.

Water and Silt Sampling at Omai Shows No Noxious Contaminants.

Mahdia has been advised in a technical report of March 9, 2012, that under the guidance of AMEC Environment and Infrastructure, a division of AMEC Americas Limited of Mississauga, Ontario ('AMEC'), AMEC's field contractors, Ground Structures Engineering Inc. of Guyana, completed testing for cyanide and other potential contaminants at Mahdia's Omai mine site.

Water samples were collected using bottles and preservatives provided by Exova Canada Inc. (Exova), an analytical laboratory located in Ottawa, Canada. Where required, samples were preserved in the field prior to shipping to Exova for analysis.

The results of the sampling indicate that there are no parameters which exceed either the International Finance Corporation (IFC) Effluent Guidelines or Canadian Council of Ministers of the Environment (CCME) Water Quality Guidelines for the Protection of Aquatic Life. Parameters which are typically of greatest concern, including cyanide (free and total), arsenic, cadmium, chromium, lead and mercury, all returned analytical values below the method detection limit. These results provide additional comfort that the quality of water at sampled locations is favourable. "We are pleased with the results of AMEC's testing and as a company will continue to further Mahdia's social responsibility of environmental and social consciousness," said David Bending, President of Mahdia.

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.