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Research Report

March 15, 2010

MAJESTIC GOLD CORP.

TARGET PRICE: $0.73

STRONG BUY

The Golden Eye Report is produced by Media Futures Limited, a worldwide provider of research on gold compa-nies. This report is based on available information at the time of publication and does not constitute an offer orsolicitation to buy or sell securities discussed herein in any jurisdiction. Investors should obtain advice based ontheir own individual circumstances before making an investment decision. For additional information on thiscompany, investors are encouraged to contact the company directly or visit the companys website.

Media Futures Limited

21/F New World Tower One, 18 Queen's Road Central, Hong KongTel: +852-2782-8707, Fax: +852-3020-4257

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Current Fair Value of EquityFair Value (Mil)

$60,000,000

Fair Value per share $0.30De-risked upside potentialBase scenario $0.50Optimistic scenario $0.73Un-risked Best case $1.54Company detailsShares QuotedTSX Venture MJS.VFrankfurt A0BK1DShares issued (post close) 396,299,986

Highlights:

Existing NI-43-101 Resource Estimate1.2 Mi ouncesResource Update pendingsignificant expansion expectedIn Production1,500 tpd operationcontract mining = low production costsManagement with proven track recordTechnical and Financial teams have beenhere beforeExcellent entry point = low Market Cap

Company Profile

Majestic Gold Corp. is a Vancouver-based; TSX Venture Exchange and Frankfurt Exchange listedgold exploration and development company with a very advanced gold deposit in Shandong prov-ince of China. The company has a, NI 43-101-compliant, indicated and inferred gold resource on itsSong Jiagou property with plans to publish a new resource estimate soon. A recently announceddeal will increase Majestics effective ownership from 54 to 94% and has allowed the property to

commence production at an initial rate of 1,500 tpd.

Majestic is operating a gold mine. With a contract that fixes operating costs and allows use of land andequipment, Majestic will be cash flow positive in a matter of months

Earnings in excess of $3.5 million in current year growing to over $30 million in 2013 and beyond.Using conservative P/E Majestic should achieve valuations in excess of $225 million in short order.Our upside scenarios resulting from consolidated financials from current projects indicate potential val-ues in excess of $485 million for the company. Further upside potential will be derived from expandingthe current mineable resources on the Song Jiagou property and from defining additional resources onother projects in China and developing them through to mining stage.

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Overview

Majestic Gold is a mineral exploration company focused on exploration and development of gold projects inChina. The company currently has one main project on which prior work has demonstrated potential to hostsubstantial gold ore bodies and is currently being exploited on a small scale. Rod Husband a geologist withmore than 20 years of international exploration experience heads the company and recently hired Mike Hib-

bitts, a proven mine builder to guide the company through development and mining.

The geographical focus is on China, with a strategy of getting into projects where previous work has demon-strated the geological merits of the project. In this way, investors avoid the high-risk initial discovery stage.Building on the available information, the projects can move forward quickly.

Another important element in the companys strategy is to work with projects that are well located with re-spect to transportation, water, power and other infrastructure. The Song Jiagou project is located in Yantaiwhich is in the northeastern Shandong Province. This well-known gold producing region produces over 25%of Chinas annual gold, nearly 2.5 million of 9.3 million ounces per year.

Various government geological teams started exploring Song Jiagou in the 1960s. The majority of explora-tion by the Chinese occurred between 1998 and 2004 with exploratory mining of the deposit by commencingin 2001. It is not uncommon in China for mining to begin before a project has been fully evaluated as thecountry has always tried to encourage state-owned operations to pay their own way through small-scale min-ing operations.

Since acquiring the property in 2004, Majestic has quickly expanded the known Chinese resource of 150,000ounces to its current size of approximately 1,200,000 ounces. With a revised estimate due in the comingweeks it is expected to once again increase the resource to nearly 2 million ounces.

Majestic has recently announced plans to acquire the remaining interest in the Song Jiagou property and willuse a contract miner to produce gold. This is an excellent overall strategy for growth that will allow the com-pany to generate cash flows immediately, and in turn, will allow for further expansion of the mine and result-ing in very significant cash flows within 2 years.

Majestic will now focus on mining operations and work to increase production levels as quickly as possible

and become a very significant gold mining company with expected production levels increasing to around125,000 ounces per year.

Valuation

As a general rule, companies become easier to value as they get closer to generating cash flows and earn-ings. Prior to this stage a great deal of comparative and market research is required to determine what val-ues can be assigned to projects. Proven resources have more value in the ground than do the inferred re-sources and any resource is worth more than a grass roots project. The following expected values are aguideline to demonstrate current and potential value in a company if certain factors occur in the direction thatthe company expects.

Expected Fair Values Risked Mineable ResourceSong Jiagou Total Value Valueper share

Base Case* 200,000,000 200,000,000 $ 0.50Pessimistic Case** 120,000,000 120,000,000 $ 0.30Optimistic Case*** 293,000,000 293,000,000 $ 0.73Un-risked Best Case***** 617,000,000 617,000,000 $ 1.54

All Cases use the current 400 million shares outstanding and have not allowed for additional equity to fund non-debt portion ofexploration and development expenses*Base Case uses expected resource @ $100/oz**Pessimistic Case uses only existing resource @ $100/oz***Optimistic Case uses 1,500 tpd expanding to 5,000 tpd****Un-risked Best Case uses 10,000 tpd

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Based on our review of available information a current value of $0.30 per share based on 400,000,000 shares out-standing is a fair evaluation and easily justified.

Limited work is required to greatly enhance the value on a de-risked basis. If mine development proceeds as plannedand Majestic continues to prove the feasibility of its project, total values in excess of $617 million are attainable for thecompany.

Operating Environment

History of goldFrom the first discoveries of gold in ancient times, its beauty and the ease with which it could be worked have inspiredcraftsmen to use it to create ornaments, not just for adornment, but as potent symbols of wealth and power. The firstpure gold coins were struck by King Croesus of Lydia (present-day Turkey) during his reign between 560 and 547 BCand gold coins have continued as legal tender since that time.

Gold as a reserve assetCentral banks have been major holders of gold for more than 100 years and are expected to retain large stocks in fu-ture. They currently account for about 20% of above-ground stocks. The process of rebalancing reserve portfolios toadjust to changing conditions since the demise of the gold standard has led to a reduction in the amount of gold heldby some central banks in the past ten years. This process may continue for some years to come. But the central bankshave affirmed that gold will remain an important reserve asset for the foreseeable future and, importantly, since 1999have accepted that sales be governed by international agreement.

Price influencesHistorically gold mines are poor in precious yellow metal and despite all the difficulties the world production of gold wasable to grow. It was multiplied by 4 in one century. However, since 2001 the world production of gold seems to havepeaked. Gold production still has declined by 84 tonnes in 2008, despite a price of gold record ounces to 872 dollars.This year, the hierarchy of gold producing countries has been a further upset now that both China and Australia haveovertaken South Africa as the most prolific gold producing countries.

The peak of world gold production? Global mine production of gold was 2357 tons of gold in 2008, a decrease of -3.4% compared to that in 2007, and -10.9% compared to 2001. The price of an ounce of gold in 2008 averaged $872compared with $695 in 2007 and $271 in 2001. Some of these results can be explained due to the lack of exploration

that occurred in the late1990s and through 2003, but not nearly all. Gold mines have a much shorter time-line to pro-duction than porphyry copper mines and if exploration began in earnest in 2003/4, new discoveries should have beenpresented on-line by 2008. The reality is that the easy gold has been found and most of it has been mined out. Theundeniable result will be the continuation of shirking mine supplies.

Gold production hit a peak in 2002 and has been declining each year since in spite of significant increases in pricessince then

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These charts illustrate the following:

Wealthier countries consume more gold per capita than poorer ones

Asia appears to have a higher affinity to gold than Europe and North America (relative wealth of India andSouth Korea versus Italy and US)

Price has modest affect on per capita demand (average of 0.62 grams per person over last 9 years)1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

SupplyMine production 2527 2574 2602 2618 2645 2612 2620 2492 2550 2471Official sector sales 326 363 477 479 520 547 617 469 674 328Old gold scrap 631 1105 615 616 713 841 944 849 886 1108Net producer hedging 504 97 506Net disinvestment 229 303 16 34Total Supply 4217 4139 4200 4016 3894 4000 4181 3844 4110 3907DemandFabricationJewelry 3294 3169 3139 3204 3008 2660 2482 2614 2707 2280Other 561 567 592 557 474 481 513 552 575 639Total Fabrication 3855 3736 3731 3761 3482 3141 2995 3166 3282 2919Bar hoarding/coins 362 174 269 242 261 264 180 257 263 226net producer de-hedging 15 151 412 255 422 86 373Net investment 229 200 184 751 480 388Total Demand 4217 4139 4200 4018 3894 4001 4181 3845 4111 3906

Gold price 331.29 294.09 278.57 279.11 271.04 309.68 363.32 409.17 444.45 603.77Mine Supply Deficit 1690 1565 1598 1400 1249 1389 1561 1353 1561 1435

The table shows the supply and demand for gold over a recent 10-year period and the following observations can be mad

Price of gold affects demand for jewelry but has little affect on total demand Mine supply lags demand by an average of 1480 tonnes per year

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Mine Production Price World Population Graph

This chart shows mine production (*10,000 oz) (red), gold price ($/10oz) (green) and population (in millions) (blue) from1970 through 2008 and illustrates some interesting points:

The last time the mine production trend line crossed below the population trend line, there was a significant spike in theprice of gold.

As the gap between mine production and population trend widens (1995-2002) the price of gold falls.Mine production shows little correlation to the price of goldSince 2002 the mine production-population gap is narrowing and if this trend continues, it will cross the population line inthe next 2-3 yearsOperating in China

It is now easier and more secure than ever for foreign mining companies to operate in China. Since the central govern-ment has taken several large strides to encourage foreign investment and participation in the development of China's min-ing industry since amending the laws regarding foreign investment in mining in 2003.

These steps included: Issuance of new mineral law under the Ministry of Lands and Resources; Privatization and deregulation of the mining sector; Streamlining of permitting and approval procedures; Granting irrevocable and exclusive mining rights to foreign entities; Allowing the transfer of mining rights and; Relaxing of the rules regarding repatriation of capital profits

There is no doubt that China has decided to enter the global mining arena and will continue to grow become a larger andmore significant player in the industry. Consumption of all metal resources are rising in China more rapidly than any othercountry in the world and they are working to make ensure that they are in a position to service this demand.

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Properties

Song Jiagou Mine

IntroductionThe Song Jiagou property is located on the Jaiodong peninsula in Muping County, the Shandong Province, the Peo-

ples Republic of China.

Gold production from the entire Jaiodong peninsula accounts for over 25% of Chinas annual gold production, pres-ently estimated to be 288 tonnes or 9.3 million ounces.

There are no known environmental liabilities and the necessary permits that are in place for the work being com-pleted.

HistoryThe area has been explored by various government geological teams since the 1960s.

In 1998 the No.3 Geological Brigade conducted a detailed exploration in the Fayunkuang area and calculated a re-source of 1.8 million tonnes with an average grade of 6.76 grams of gold per tonne gold. This estimate is consid-

ered relevant but of unknown reliability; it is not compliant with the standards of NI 43-101, and is includedonly for the purpose of historical documentation.

During 1999 and 2000 Muping completed 20 shallow drill holes, and in 2003 carried out 1,600 meters of inducedpolarization geophysical surveying that resulted in the identification of nine anomalies. During 2003 2004, severalof these anomalies were tested by drill holes. In total, 45 holes were drilled with an aggregate length of about 16,000meters.

Exploratory mining of the deposit by Muping commenced in 2001. Four levels have been developed, at elevations of0, -40, -80, and -120 meters relative to sea level. Two parallel drifts about 300 meters in length have been driven oneach of the levels within the trend of mineralization, and crosscuts have been established at 30-meter intervals alongthe strike zone. Mining has been intermittent; most stopes are from five to 10 meters in width, and most do not ex-tend the full distance between crosscuts, however, several stopes have been developed for the full vertical interval

between the third and fourth levels. In several areas, the relatively narrow stopes have been expanded laterally byroom-and-pillar mining, presumably to exploit zones in which the distribution of gold mineralization is more extensivethan normal.

Regional GeologyThe Song Jiagou Property is situated in the Jiaodong gold province, along the southeastern margin of the NorthChina craton. The tectonic evolution of China has been dominated by the interaction between, and the convergence,of a number of Precambrian microplates that have deformed sedimentary basins and accreted island arcs that devel-oped along the intervening sutures. The two largest Precambrian blocks in China are the North China and Yangtze.Jiaodong Peninsula is located along the southeastern margin of the North China craton and on the western marginof the Pacific Plate. It is bounded to the west by the northeast-trending Tan-Lu fault zone that extends from theYangtze River to the Russian Far East. To the south, the Jiaodong Peninsula extends into the Yangtze craton.

Rocks on the peninsula were affected by two major orogenies, the Indosinian collision between the North China and

Yangtze cratons, with the suture defined as the Qinling Dabie Sulu metamorphic belt (200 230 Ma), and theYanshanian subduction of the Pacific plate beneath Eurasia during the Middle Jurassic.The Tan Lu fault zone has undergone hundreds of kilometers of left-lateral displacement between the Eurasia andPacific plates, probably during the Mesozoic.

The Jiaodong Peninsula is broadly divisible into two pre-Jurassic components: the Jiaobei Terrane in the north andthe Su-Lu Terrane in the south. The two terranes are separated by the Wulian Qingdao Yantai suture and theJiaolai or Laiyang basin, comprising Jurassic and Cretaceous-age sedimentary rocks. The Property is located in theeastern part of the Jiaobei Terrane.

The Jiaobei Terrane is comprised of about 40% granitoid intrusions, 30% Archean greenstone, and the balance ofProterozoic and Mesozoic rock sequences and Quaternary alluvium. The Su-Lu terrane is characterized by the pres-ence of high-pressure metamorphic minerals and is interpreted to be the eastern extension of the

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Qinling Dabie belt, probably part of the leading edge of the Yangtze craton that was subducted during the Tri-assic collision.

The granitoid rocks of the peninsula are dominated by Mesozoic-age intrusions as well as by Precambriangranitoids, but economic mineralization is exclusively associated with Mesozoic intrusives.

Property GeologyThe Fayunkuang gold deposit is located along the northeastern margin of the Jiaolai Basin, about 10 kilometersnortheast of the geologically similar and well-documented Pengjiakuang gold deposit.

Paleoproterozoic metamorphic rocks of the Jingshan Group are mainly distributed to the north of the basin andare comprised of biotite granulite, graphite-bearing gneiss, leucogranulite and marble. Cretaceous-age rockscomprised of conglomerate and sandstone of the Liayang Group, volcanics of the Qingshan Group, and mud-stone and shale of the Wangshi Group are distributed to the south.

The Property is underlain by polymictic conglomerate belonging to the Linshishan Formation, a member of theLiayang Group. Clasts are predominantly derived from granitoid Proterozoic gneiss, although mafic gneiss andclastic sedimentary clasts are present in subordinate quantities. Clasts vary in size from pebble to cobble,

mostly in the range of 10 to 30 centimeters in diameter, and are typically well rounded. No sorting or stratifica-tion is recognizable in surface or underground exposures of the conglomerate at the Fayunkuang Mine.

Early Mesozoic granites are widely distributed in the northern and eastern parts of the area.

Mineralization is contained within shear or fault zones of the Zhuwu-Dianji Fault, along the basin margin and ator near the contact between metamorphic Proterozoic and overlying Cretaceous-age conglomeratic rocks. Thefault zone strikes about 45o and dips 45o to 75o to the southeast.

Alteration minerals associated with the fault zone include sericite, silica, pyrite, carbonate, chlorite and potas-sium feldspar and are present in a large halo around the fault zone and contained mineralization.

Deposit types

Gold occurrences on the Jiaodong Peninsula are of vein-type as well as disseminated and stockwork styles.The veins typically occur within second and third-order faults cutting Mesozoic granitoids and are relatively con-tinuous, measuring from a few centimeters to several meters in thickness by as much as five kilometers instrike. The stockworks occur along first-order regional faults and are surrounded by broad alteration halos.

The vein- type mineralization is appropriately described as mesothermal; the disseminated and stockwork stylehave some aspects of epithermal mineralization, but are both spatially and genetically associated with the vein-type, and so can be considered a variant of that type.

MineralizationRegionalThe Jiaodong gold province is divided from west to east into the Zhao-Ye, Xixia, and Muping-Rushan goldbelts. The Property is located within the Muping-Rushan gold belt that is situated in the eastern part of theJiaobei Terrane and contains about 20% of the gold reserves of the Jiaodong Peninsula. Gold deposits in thisbelt are hosted by the Early Proterozoic Jingshan Group metamorphic rocks, and by the Kunyushan Batholith,and the distribution of mineralization is commonly controlled by fault zones. Gold mineralization is characterizedas either vein-filling type or as disseminated and stockwork type.

PropertyThe Fayunkuang deposit is situated to the southeast of the Zhuwu-Dianji Fault, within conglomerate of the Up-per Cretaceous Linsishan Formation which unconformably overlies metamorphic rocks of the Proterozoic Jin-shan Group. The fault strikes about 045 and dips from 45 to 75 to the southeast. Although the morphology ofthe underground workings suggests that most mineralization is confined to relatively narrow, linear zones, thereis also evidence, by way of room-and-pillar stopes, that in some areas mineralization extends laterally awayfrom the controlling structures for 10 or more meters.

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The underground sampling carried out by Majestic, substantially confirms that the highest grades of gold miner-alization are confined to relatively narrow, although vertically and horizontally persistent zones. Away from thesehigher-grade corridors, gold grades drop to 0.5 grams per tonne or less, with rare, interspersed higher values.

The open cast mining operation begun in early 2005 indicates that at least one zone, is persistent over a verticaldistance of a minimum of several hundred meters. The other zones, if extended to the surface, would underliethe present mine complex.

Gold mineralization is associated with sulphides that include pyrite, chalcopyrite, galena, sphalerite and bornite.Gold is most abundantly associated with pyrite as a matrix cement in breccia, and sulphide veins. Galena andchalcopyrite are present in minor quantities. There is an apparent positive, however, not necessarily linear corre-lation between the abundance of pyrite and the abundance of gold.

Conclusions

Gold mineralization of the Song Jiagou deposit occurs within and around the surrounding fractures that cut Cre-taceous-age conglomerates near the edge of a depositional basin.

The deposit is characterized by a large envelope of gold mineralization with an average grade of about 0.5 g/t

which contains irregularly distributed, highly restricted higher values of gold.

The disposition of both the higher-grade values and the surrounding envelope is controlled by fractures thattrend northeast and dip to the southeast.

The resource is estimated by the inverse distance squared interpolation at a cutoff grade of 0.5 g/t gold and acapping level of 50 g/t is: Indicated 8.0 million tonnes at an average grade of 1.67 g/t gold and Inferred 18.1 mil-lion tonnes at an average grade of 1.28 g/t gold.

At a cutoff grade of 0.5 g/t and a capping level of 50 g/t, the deposit is estimated by kriging to contain an Indi-cated resource of about 8.8 million tonnes at an average grade of 1.46 g/t gold, and an Inferred resource ofabout 18.2 million tonnes at an average grade of 1.26 g/t gold.

Because of the high nugget effect, the inverse distance estimate is considered to be a more realistic estimatethan the kriged estimate.

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Projected Project Cash Flows2010 2011 2012 2013 2014

Tonnes per day 1,500 5,000 5,000 10,000 10,000Tonnes per year 405,000 1,750,000 1,750,000 3,500,000 3,500,000Grade (avg g/t) 1.32 1.32 1.32 1.32 1.32Gold milled (oz) 17,190 74,277 74,277 148,553 148,553Recovery (%) 0.85 0.85 0.85 0.85 0.85oz produced 14,611 63,135 63,135 126,270 126,270$/oz $1,100 $1,100 $1,100 $1,100 $1,100Tonnes of waste 1,215,000 5,250,000 5,250,000 10,500,000 10,500,000Revenues $16,072,379 $69,448,553 $69,448,553 $138,897,106 $138,897,106Costs

Mining/processing 4,673,077 20,192,308 20,192,308 40,384,615 40,384,615Waste 3,037,500 13,125,000 13,125,000 26,250,000 26,250,000Smelting/royalties 1,215,000 5,250,000 5,250,000 10,500,000 10,500,000

Total Costs 8,925,577 38,567,308 38,567,308 77,134,615 77,134,615Net Revenues $7,146,802 $30,881,245 $30,881,245 $61,762,491 $61,762,491G/A costs 1,000,000 3,000,000 3,000,000 3,000,000 3,000,000EBIDT $6,146,802 $27,881,245 $27,881,245 $58,762,491 $58,762,491Taxes 1,844,041 8,364,374 8,364,374 17,628,747 17,628,747Profit $4,302,762 $19,516,872 $19,516,872 $41,133,744 $41,133,744

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Management and Directors

Recent additions to the management team at Majestic completed the needed experience to succeedin the transition from an exploration to a production company. One of these recent additions is, MikeHibbitts, a mine geologist with over 30 years of proven experience in leading companies through de-velopment and on to successful production, which is a key ingredient to the future success of Majestic.

Rod Husband, P. Geo

Rod Husband has over 20 years of experience in all areas of economic geology. Mr. Husband ispresident of chief geologist for Pro Group Ltd and is presently on the board of Majestic Gold Corp.,Global Hunter Corp., and Verona Development Corp

Mike Hibbitts- P. Geo B.S. Geology

30 + years of extensive progressive experience from early exploration through feasibility, mine devel-opment and production. Mr. Hibbitts is an experienced officer of mining companies including New GoldInc., Northgate Exploration Ltd., Royal Oak Mines, and Noranda Mines with a solid proven track recordof exploration, development, production and safety.

Rudy Brauer

Mr. Brauer has 20 years of international experience in the money brokering and investment bankingbusiness. He served as president and member of the board for several companies in Germany andthe USA. His expertise is identifying the value of promising projects throughout various business sec-tors.

Former president of Northern China Planning and Design Institute of the Ministry of Chemical Industryand has over 25 years experiences in the mining industry.

Dan Pisenti, B. Sc, CPA

Dan Pisenti has over 20 years experience in the mining industry including the past 15 years of provid-ing investment advice as the president of Whitehall-Parker Securities, Inc.

Position: President and Director

Position: VP Development and Exploration

Position: Director

Shaohui ChenPosition: Director

Position: Director

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Key Risks

Majestic Gold holds several mineral concessions in China, however, none have yet received scopingor pre-feasibility studies. The company has a NI 43-101-compliant mineral resource for one project,

however, the value of the company depends on the ability to further advance key prospects sufficientlyto demonstrate in order economic viability. Although the companys key mineral prospects offers po-tential for success, each prospect can also carry significant risk.

Majestics success depends on

the company confirming existing resources will support miningTo date, the Song Jiagou property has a NI 43-101-compliant mineral resource, and although it cur-rently supports a mining operation, additional work is required to fully de-risk this project. We base ourvaluation of Majestic on the reasonable assumption that the company will prove the economic mine-ability of these resources. Failure to confirm these economics will materially affect our valuations.

the companys ability to control capital and operating costsAll the companys properties contain smaller-scale deposits at present, and development will requirecareful planning and execution. The typical project scale creates the risk that future cash flow will beinsufficient to repay the required initial capital investment. Further, there is the risk that revenues willbe insufficient to cover operating costs. Mining developments and operations continue to face signifi-cant inflationary pressures due to shortages of equipment, supplies and labour. We expect that thesepressures have abated for the time being, however, there is a risk that inflationary pressures couldexceed our assumed rates.

Gold prices remaining robustGold continues to trade at or near all time highs. Although our modeled price of $1,100/oz supportsthe economic viability of the companys projects, there is the risk of materially lower gold prices occur-ring in the longer term that could adversely affect our valuation.

the companys ability to raise further funds for exploration and development

Majestic is a junior exploration company with limited access to capital and we expect it will need in-creasing amounts of cash to fund its exploration programs. In addition, the company will need capitalto cover development costs for its projects, should it have exploration success. The need for furtherprivate placements of Majestic shares could result in significant dilution to shareholders.

the companys ability to obtain permits and environmental approvalsMajestic is operating in China and although all necessary permits are currently in place to support cur-rent levels of mining, the company will have to complete detailed engineering and environmental as-sessments in order to obtain approvals for further project development. Although the risk of failing toobtain permission is low in this established district, there is the risk of added costs and delays.

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Disclaimer

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