; Commences Drill Program in Ring of Fire, James Bay Lowlands

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TORONTO, ONTARIO--(Marketwire - Oct. 8, 2010) - MacDonald Mines Exploration Ltd. (TSX VENTURE:BMK) ("MacDonald Mines" or the "Company") announces it has closed the non-brokered, private placement financing of $3,430,800 with HudBay Minerals Inc. (TSX:HBM) ("HudBay") announced on October 6, 2010.


The transaction was comprised of 19,060,000 units at $0.18 per unit. Each unit consists of one Class A share of MacDonald Mines (a "Share") and one half of one Share purchase warrant (a "Warrant"). Each full Warrant is exercisable for one Share of MacDonald Mines at $0.25 per Share for a period of 36 months expiring on October 8, 2013. A total of 9,530,000 Warrants were issued.


The financing is subject to receipt of final approval of the TSX Venture Exchange. All securities issued in connection with the financing are subject to a restricted period of four months and one day from the date of issuance.


HudBay now owns 9.9% of MacDonald Mines' issued and outstanding Shares (14.15% on a partially diluted basis).


Drill Program Commences - Nickel, Copper and Zinc Targets To Be Tested


MacDonald Mines has commenced drilling on its Butler (formerly McNugget) Property. MacDonald Mines' Vice President of Exploration Quentin Yarie, P.Geo is overseeing the exploration program and has joined the Company's on-site geologist, James Masters, at the camp on Butler. Presently in-camp as well are geologists Robin Chisholm, P.Geol., President, and Craig Scherba, P.Geol. of Taiga Consultants, as well as consulting geologist Dr. Larry Hulbert, P.Geo.


Employing two Cartwright diamond drills, the program will run for the next 4 weeks and will consist of approximately 3,700 metres of drilling. Focus will be on testing existing intersections at greater depths that were verified from the previous drill program, and intersecting a variety of new targets - up to 400 metres in depth. These new targets were identified by a detailed airborne Geophysics using Aeroquest International's AertoTEM IV system and was conducted after the previous drill program.


Six targets have been selected to test for VMS (copper/zinc) and several potential nickel targets in the area are currently being ranked by Robin Chisholm, Craig Scherba, Dr. Larry Hulbert and Quentin Yarie.


A news release is planned for the following week to provide details on the target selections and specific areas.


About MacDonald Mines Exploration Ltd.


MacDonald Mines is a mineral exploration company with an established exploration history in the Canadian Northlands. MacDonald Mines has set upon a strategic direction of exploration with particular focus on nickel, chrome, copper and zinc in the "Ring of Fire" area of the James Bay Lowlands of Northern Ontario.


As detailed in the Company's recent press releases, MacDonald Mines has several significant mineral opportunities across multiple properties in the James Bay Lowlands.


On its Butler Property, new volcanogenic massive sulphide (VMS) mineralization of substance has been discovered. Four VMS mineralized greenstone fold limbs, all of which have now yielded VMS mineralization over a potential cumulative strike length of approximately 20 kilometres, have been identified and the Butler Property has the potential to host a new VMS camp with characteristics similar to those seen at Matagami or Noranda in Quebec.


MacDonald's highly prospective Hulbert-Salo Property contains very conductive and discrete targets within a layered magnetic structure, which is typical of magmatic massive sulphides containing nickel. The Hulbert-Salo appears to have the potential to host a Voisey's Bay-type nickel deposit.


The Company's Sanderson Property (formerly the Big Mac Property) exhibits high-priority nickel and copper targets with geological and geophysical signatures similar to the significant chrome discoveries of Freewest and KWG-Spider.


More detailed information about the Company is available on the website at


Cautionary Statement:


The foregoing information may contain forward-looking statements relating to the future performance of MacDonald Mines Exploration Inc. Forward-looking statements, specifically those concerning future performance, are subject to certain risks and uncertainties, and actual results may differ materially from MacDonald Mines plans and expectations. These plans, expectations, risks and uncertainties are detailed herein and from time to time in the filings made by MacDonald Mines with the TSX Venture Exchange and securities regulators. MacDonald Mines does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.



FOR FURTHER INFORMATION PLEASE CONTACT:

MacDonald Mines Exploration Ltd.
Brent Nykoliation
Vice President, Business Development
(800) 818-5442 or (416) 364-4986




or

MacDonald Mines Exploration Ltd.
Quentin Yarie, P.Geo
Vice President, Exploration
(800) 818-5442 or (416) 364-4986




or

MacDonald Mines Exploration Ltd.
Kirk McKinnon
President & CEO
(800) 818-5442 or (416) 364-4986
(416) 364-2753(FAX)
info@macdonaldmines.com
http://www.macdonaldmines.com/">www.macdonaldmines.com