FOR IMMEDIATE RELEASE TSX: – MGLAUGUST 2, 2005 ASX: - MOEMOTO...

FOR IMMEDIATE RELEASE TSX: – MGL
AUGUST 2, 2005 ASX: - MOE
MOTO GOLDMINES LIMITED – PROPOSED SHARE PLACEMENT
PERTH, WESTERN AUSTRALIA -

The directors of Moto Goldmines Limited propose to
issue up to 7 million common shares at an issue price of CDN$2.70 each, together with 3.5 million attaching warrants on the basis of one warrant for every two shares issued, to raise CDN$18.9 million.

The warrants would be exercisable at CDN$3.25 within two years of issue. The funds would be used for the feasibility study (infill drilling, metallurgical
testwork, environmental and infrastructure studies) and proposed mine development program at the Moto gold project and to provide working capital.

The issue of securities is subject to regulatory approval, and the securities to be issued in excess of the Company’s 15% placement capacity pursuant to the rules of the Australian Stock Exchange (being approximately 5.5 million securities) will be subject to shareholder approval.

It is anticipated the securities will be issued as a combination of units (each unit consisting of one share and one-half of a warrant) and subscription receipts for units.

The financing is expected to close on or around August 19th and the shares and warrants underlying the subscription receipts will be issued in late September upon receipt of shareholder approval".