MacDonald Mines Exploration Ltd. Announces Private Placement of Flow-Through Uni

All securities issued in connection with this financingwill be subject to a four month hold period from the closingdate, as well as regulatory approval. Under the terms ofthe compensation arrangement with IBK Capital Corp., MacDonaldpaid a 9 % commission totaling $45,000 payable in the formof 450,000 common shares at $0.10 per common share. In addition,500,000 broker warrants were issued representing 10% ofthe number of Units sold, exercisable at a price per commonshare of $0.10 for 2 years from the closing date.

The closing date is scheduled on or about September 10,2007.

The proceeds from the private placement will be used byMacDonald for exploration work on its properties in NorthernOntario.

WARNING: The statements made in this news release may containforward-looking statements that may involve a number ofrisks and uncertainties. Actual events or results coulddiffer materially from expectations and projections setout herein.

The TSX Venture Exchange does not accept responsibilityfor the adequacy or accuracy of this news release.