(Toronto, ON, July 6, 2010) - MacDonald Mines Exploration Ltd. (TSX.V: BMK) (“MacDonald” or the

“Company”) announces that it has recommenced its 2010 exploration drilling program in the Ring of Fire,

James Bay Lowlands.

The Company will be utilizing two drills for this phase of drilling and will focus on the results from its

successful spring 2010 drilling program.

The spring 2010 drill program on its McNugget Property identified new volcanogenic massive sulfide

(VMS) mineralization on four fold limbs. This large VMS system, which is open in all directions and yields

VMS mineralization over a potential cumulative strike length of approximately 20 kilometres, is described

by consulting geologist Hadyn R. Butler, P.Geo, as potentially being a new VMS camp. Hadyn Butler

described this system in the Company’s July 7, 2010 news release as displaying characteristics similar to

the Matagami and Noranda VMS camps in Quebec, where large VMS deposits with smaller satellite

deposits along strike were found.

This phase of drilling will focus on five principal base metal occurrence areas: 1) Campbell (Cu-Zn, to

northeast); 2) Campbell West (Cu-Zn, north central); the 3) Fold Nose (Cu-Zn, to northeast); 4) Southern

(Cu-Zn and Ni-Cu, to south); and 5) Area 39 (Ni-Cu-PGE, to southeast. (Figures are available on

MacDonald’s website at www.macdonaldmines.com). Initial drilling will be concentrated on the four VMS

horizons identified through the previous drilling and geophysical investigations.

The DDH MN07-39 area has disseminated and veinlet Ni-Cu sulfides, similar to vein-controlled

mineralization peripheral to many significant Ni-Cu-PGE sulfide orebodies (e.g., Sudbury Basin deposits,

Kabanga, Montcalm, etc.). “The high nickel tenor in the sulfides in DDH MN07-39 is comparable to that

of Sudbury Ni-Cu-PGE ores”- Dr. Tucker Barrie, P. Geo. This indicates that hole 39 is in the halo of a

potential massive magmatic sulfide orebody. The east side of the McNugget Property, where Area 39 is

located, is on the same stratigraphy as that of Noront’s Eagles Nest (11.2 MT indicated resources 6.9 MT

@ 2.04 % Ni, 0.95% Cu, 1.3 g/t Pt, 3.4 g/t Pd; Inferred resources 4.3 MT @ 1.42% Ni, 0.87% Cu, 0.8

ppm Pt, 3.4 g/t Pd: Golder Associates qualifying report for Noront, 2010).

Unlike Noront’s discovery, the EM conductors (2) in the vicinity of MN07-39 are greater than 300m in

strike length (based on both VTEM and Crone PEM – surface and borehole) compared to the Eagles

Nest 100-200m strike length. Six DDH holes are targeted in this area to explain the EM anomalies during

the current drill program.

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The Company has staked 14 mining claims covering an area of 3,140 hectares with magnetic and EM

(VTEM survey) characteristics of an intact ultramafic-gabbroic intrusion. Modelling of these data results in

a spoon-shaped intrusion with multiple internal structures, similar in size and shape of the Voisey’s Bay

complex which hosts numerous Ni-Cu deposits.

The VTEM/Mag conducted over the Property has identified an anomaly approximately 10.9 km long by

greater than 3.3km wide at its widest. Historical prospecting over the area identified both gabbroic and

ultramafic rocks.

An interpreted “feeder zone/dyke” exists to the west of the main intrusive. The most prospective EM

conductor – the primary nickel target – is located just above the throat of the feeder dyke, similar in

position to the Ovoid at Voisey’s Bay. A 3D model of the magnetic data is available on our website.

“It is both unusual and highly prospective to find a system that appears to be so intact with EM anomalies

identified in groups within the magnetic network/structures (cycles or influxes)”, comments Quentin Yarie,

P.Geo. Vice President of Exploration. “The Voisey’s Bay mineralization has been explained in terms of a

model calling for repeated influxes of magma and these characteristics are obvious in the Hulbert-Salo

data.”

Current short term work plans include a Crone PEM ground survey over the most prospective Nickel

targets (identified from the VTEM inversion). Upon review of this data, a drill program will be defined.

Because the Hulbert-Salo property is in a new area MacDonald will engage in consultation with both

Webequie and Kasabonica First Nations and outline the proposed first phase of drilling. This is in

keeping with MacDonald Mines established protocols regarding exploration on historical lands used by

First Nation communities.

The ground geophysical program has been used by MacDonald Mines on its McNugget Property resulting

in significant success in identifying targets of interest for drilling. Based on previous experience, the

Company is confident that this process can be completed quickly and with minimal impact on the ground

as it requires no line cutting (GPS positioning would be utilized).

MacDonald Mines in presenting this target of opportunity cautions that drilling will be required to confirm

the sources of the EM conductors.

A total of 130,000 options were reissued to Consultants of the Company on July 6, 2010 under the terms

of the incentive stock option plan of the Company filed with the TSX Venture Exchange and approved by

shareholders at the last Annual General Meeting of Shareholders of the Company held on June 17, 2010.

The options are exercisable at a price of $0.17 per share for a period of four years and are subject to a

four-month hold period from the date of the issuance