March 8, 2004

News Release: MEXGOLD COMPLETES AND CLOSES ACQUISITION OF EL CUBO GOLD-SILVER MINE

Mexgold Resources Inc. (TSXV: MGR) is pleased to announce that it has completed and closed the acquisition of the El Cubo Gold-Silver Mine in Guanajuato, Mexico. The purchase price for the El Cubo was approximately U.S. $13.5-million plus assumption of U.S. $7-million of long-term debt. Full payment for the mine was completed and the transaction closed late Friday, March 5. The acquisition has received the final approval of the TSX Venture Exchange.

The acquisition of the El Cubo Gold-Silver Mine was facilitated by a CDN $45-million private placement financing in which BMO Nesbitt Burns Inc. acted as the exclusive agent. This financing closed on February 26, 2004 (see press release No. 04-2004). On completion of the El Cubo acquisition, the proceeds of this financing were released to Mexgold Resources Inc. from escrow. Under the terms of the CDN $45-million financing, 22.5-million Subscription Receipts were placed at CDN $2.00 per Subscription Receipt. Each Subscription Receipt represented the right to receive one Unit on completion of the El Cubo Mine acquisition, and such Subscription Receipts have now been exchanged for Units. Each Unit consists of one common share of Mexgold and one-half of one common share purchase warrant. Each whole warrant entitles the holder to acquire one common share for CDN $2.50 for a period of two years after closing. All securities issued in conjunction with the offering are subject to a four-month hold period, which expires on June 27, 2004. BMO Nesbitt Burns Inc. received a warrant to acquire 996,000 common shares for $2.35 per share exercisable until February 26, 2007.

Gammon Lake Resources Inc., the controlling shareholder of Mexgold, acquired 5.9 million Units of the 22.5-million Unit financing for total proceeds of CDN $11.8 million to Mexgold. As a result of this purchase, Gammon will continue to own approximately 26.3% of the issued and outstanding shares of Mexgold on a post-closing basis, and thereby maintain its pro rata interest. The investment by Gammon in Mexgold is a related party transaction for the purposes of National Instrument 61-501.

The El Cubo Gold-Silver Mine is located in the Guanajuato gold-silver district in the Republic of Mexico, near the City of Guanajuato, in Guanajuato State. Historical reports cite district production at 1.2 billion ounces of silver and over 4 million ounces of gold. The El Cubo Gold-Silver Mine is a low-sulphidation epithermal vein system centered on the Veta de la Sierra, the major source of gold production for the district. The El Cubo Gold-Silver Mine has been in continuous operation for over 200 years. The Mine has a total land position in excess of 8,500 hectares of which only approximately 10% represents current and historical mining operations.

The El Cubo Gold-Silver Mine is currently operating as a multi-level underground mine with access ramps for mobile equipment and two vertical shafts for the hoisting of ore. The mine has a modern milling complex with a rated capacity of 1,400 tonnes per day and which has an estimated replacement value of U.S. $13,000,000. Over the past five years, the El Cubo Gold-Silver Mine has produced an average of 58,000 ounces of gold equivalent per annum (each 65 ounces of silver being assumed to equal one ounce of gold).

Mexgold is of the opinion that the full potential of the property has yet to be realized. While the mine has been in continuous operation for many years, it has lacked capital expenditures on exploration and development and, accordingly, the mine is not operating at full capacity. Mexgold will now commence a systematic program of exploration and development that will allow production from the underground mine to be increased, thereby utilizing the full capacity of the existing modern metallurgical plant. This is intended to result in an increase of annualized production to in excess of 100,000 ounces of gold equivalent per annum within the current calendar year, and a reduction of the current average cash cost of U.S. $265 per ounce of gold equivalent to below U.S. $190 per ounce of gold equivalent. The exploration program is targeting an expansion of the project resource to over 2 million ounces of gold equivalent.

After the cost of acquiring the El Cubo Gold-Silver Mine of approximately CDN $18-million (U.S. $13.5-million), Mexgold will apply the remaining CDN$ 27-million of the proceeds from the recent financing to significant mine development and operational enhancement, implementation of a systematic mineral exploration at the El Cubo Gold-Silver Mine to develop and expand reserves; and to further exploration at Guadalupe y Calvo, Mexgold's current advanced-exploration property (see press release No. 2-2004 dated January 15, 2004); and to working capital.

Mexgold's immediate plans for the El Cubo gold-silver mine include the following programs:

- A 60,000-metre exploration and development drilling program.

- 8,500 metres of underground development in tunnels and ramps.

- Improvements to mine design and mining methods.

In the Mexgold financing, the securities were not registered under the U.S. Securities Act of 1933, as amended, and were not offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor has there been any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

Mexgold announces that options in respect of an aggregate of 620,000 common shares exercisable at $3.50 per share for a five year term were granted on March 8, 2004 to directors and officers, subject to regulatory approval.

Roderick D. Pye, P.Eng., is the qualified person responsible for the technical information in this news release.

Mexgold Resources Inc. is a Nova Scotia based mineral exploration Company with a 100% interest in the Guadalupe Gold-Silver Project located in Chihuahua State, Mexico. The Company's website is www.mexgold.com. Shares of the Company trade on the TSX Venture Exchange under the symbol MGR.

CAUTIONARY STATEMENT

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This News Release includes certain 'forward-looking statements'. All statements other than statements of historical fact included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of Mexgold, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Mexgold's expectations are exploration risks detailed herein and from time to time in the filings made by Mexgold with securities regulators.

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For further information: please contact: Bradley H. Langille, President Mexgold Resources Inc., (902) 468-0614; Jodi Eye, Investor Relations, Mexgold Resources Inc., (902) 468-0614

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