Mahdia Gold Corp. (CNSX:MGD) Announces Successful Convertible Debenture Placement

TORONTO, ONTARIO--(Marketwired - April 17, 2013) - Mahdia Gold Corporation (the "Company") (CNSX:MGD) is pleased to announce that it has raised gross proceeds of approximately $1,020,000 (Cdn) through a non-brokered private placement of units at a price of $1,000 per unit. Each unit consists of (i) $1,000 face value of 15% convertible unsecured subordinated debentures (the "Debentures"), and (ii) 600 common share purchase warrants of the Company (the "Warrants").

"We are pleased to receive these very timely funds," said Andre J. Douchane, President & CEO of Madhia Gold. "The Company has used the net proceeds of the offering to fulfill its 2013 payment obligation to the Guyana Geology and Mines Commission for the Omai property. Mahdia is currently getting small scale production from its test work on the alluvial deposit and will expand its capability and returns. The Company will continue to define the recoverable gold in the resident placer deposits and move forward with the evaluation of the low-grade stock piles left by previous producers and other areas of discovered, but unexploited placer gold deposits within the property."

About Mahdia Gold Corp.

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

For additional information including a photo library showing the advancement of activities at the Omai mine site please visit the Company's website at www.mahdiagold.com.

The securities have not been registered under the U.S. Securities Act of 1933, as amended, and may not be 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 shall there be any sale of the securities in the United States.

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.