Mengold Closes $500,000 Private Placement With MineralFields

Mengold Resources Inc. has closed a private placement through the sale of 2,000,000 units at a price of $0.25 per Unit, for gross proceeds of $500,000.

Each Unit consists of one flow-through common share and one transferable share warrant (each share purchase warrant a “Warrant” and collectively, the “Warrants”). Each Warrant entitles its holder thereof to acquire one additional common share at a price of $0.40 for a period of 24 months following the closing date. The Warrants will be subject to an accelerated expiry in the event that the price of the common shares of Mengold on the TSX Venture Exchange is more than $0.70 for a period of at least 21 consecutive trading days. Mengold may then accelerate the expiry time to 14 calendar days from the date express written notice is provided to the holders of Warrants.

Subject to regulatory approval, Limited Market Dealer Inc. (“LMD”), a division of First Canadian Securities®, will receive a cash finder’s fee representing 6% of the gross proceeds raised by LMD and 160,000 compensation options. The compensation options entitle the holder to acquire an aggregate of 160,000 Units at an exercise price of $0.25 per Unit for a period of two years from the closing date.

“Mengold is very pleased to be renewing its relationship with MineralFields Group”, stated Mr. Joel Scodnick, President and Chief Executive Officer. “This is an important milestone in the growth of Mengold and we look forward to working with MineralFields Group as we develop our property portfolio.”

All securities issued in conjunction with the private placement will be subject to a four-month hold period expiring on October 1, 2008.

Proceeds of the private placement will be used to fund Mengold’s exploration activities which are currently focused on the Burchell Lake and Goldcreek Properties in the Shebandowan area, west of Thunder Bay, Ontario.

About MineralFields, Pathway and First Canadian Securities®

MineralFields Group (a division of Pathway Asset Management) is a Toronto-based mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada during most of the calendar year, as well as hard-dollar resource limited partnerships to investors throughout the world. Pathway Asset Management also specializes in the manufacturing and distribution of structured products and mutual funds. Information about the MineralFields Group is available at www.mineralfields.com. First Canadian Securities® is active in leading resource financings (both flow-through and hard dollars) on competitive, effective and service-friendly terms, with investors both within, and outside of, MineralFields Group.

About Mengold

Mengold is engaged in mineral exploration for precious and base metals. The Company has recently completed a 4,630m diamond drilling program at the Burchell Lake and Goldcreek Properties, both prospective for gold, copper, zinc, nickel, and molybdenum, in the Shebandowan area of Northwestern Ontario. Mengold has 36,410,088 common shares outstanding.

For further information, please bookmark www.mengold.ca.

Contacts: In Canada Mengold Resources Inc. Joel Scodnick, President and Chief Executive Officer (705) 522-4439 or (807) 629-7516 (705) 522-8694 (FAX)

Email: scodnick@mengold.ca or scodnick@netspectrum.ca

Mengold Resources Inc. Douglas Reeson, C.F.O. and Director (416) 533-9664 (416) 533-2890 (FAX)

Email: reeson@mengold.ca

In Europe Mengold Resources Inc. W. Ian L. Forrest, Chairman and Director 011.41.22.809.9511 011.41.22.899.9501 (FAX) Email: forrest@mengold.ca

Website: http://www.mengold.ca

Noble Investment Dan Patience Investor Relations

Email: noblehouse@shaw.ca

Source: Mengold Resources Inc.