Meridian Gold

RNS Number:1933G Patagonia Gold PLC 09 December 2004 9 December 2004 PATAGONIA GOLD PLC ACQUISITION OF ARGENTINE EXPLORATION COMPANY MINAMALU SA Patagonia Gold Plc ("Patagonia Gold"), the South American mining explorer, is pleased to announce the acquisition of the entire issued share capital of Minamalu SA ("Minamalu"), an Argentine exploration company which holds 40 per cent. interests in each of: * Huemules SA ("Huemules"), which holds 14 mineral properties, for total area 17,322 hectares, located in the Cordon Huemules approximately 25 kilometres to the west of the Esquel gold project and containing the historical Huemules gold mine. Exploration in the late 1990's delineated an inferred gold resource of 114,300ozs in the immediate vicinity of the mine together with identifying other prospective areas; * Leleque Exploration SA ("Leleque"), which holds 20 properties, for total area 83,778 hectares, to the north and adjacent to the Esquel gold project and though lightly explored, is considered highly prospective with several large colour alteration areas together with numerous gold anomalies that have been identified by previous exploration; and * Minera Nahuel Pan SA ("Nahuel Pan"), which holds 11 mineral properties, for total area 14,030 hectares also considered to be highly prospective for gold with a large colour alteration area, along strike and to the south of the epithermal corridor in the Cordon de Esquel, separated only by the Willimanco fault valley. The consideration for the acquisition, which completed on 8 December 2004, was #520,000 and was satisfied by the issue to the vendors of Minamalu ("Vendors") of #520,000 unsecured convertible loan notes 2007 of Patagonia Gold ("Loan Notes"). The Loan Notes are redeemable by the Vendors at any time and are convertible upon notice by the Vendors on the basis of 10 Ordinary Shares for every #1 of the principal amount of the Loan Notes held. Any Loan Notes still outstanding on 8 December 2007 will be redeemed by Patagonia Gold for cash. The Vendors are all members of the Miguens/Bemberg family and associates and include Carlos Miguens and Gonzalo Tanoira, both directors of Patagonia Gold, who will receive consideration comprising #98,800 Loan Notes and #36,400 Loan Notes respectively. The remaining 60 per cent. shareholdings in the above three companies are held by a wholly owned subsidiary of Meridian Gold Inc ("Meridian"). Minamalu has a shareholders agreement with Meridian for the exploration and development of the mineral properties, held by Huemules, Leleque and Nahuel Pan. Exploration of these three areas has been on hold due to Meridian's state of 'pause' on their Esquel gold project. Patagonia Gold, with 45 per cent. of its shareholders based in Argentina, is successfully operating in the Chubut province, currently carrying out exploration activities on 37 properties covering 2,600km2, including drilling on the Crespo project located 200 kilometres to the south of Esquel. Speaking of the acquisition today, Bill Humphries, Managing Director, said: "By acquiring Minamalu we have gained a significant interest in a highly prospective area that is host to one of the world's largest high grade gold deposits." ENDS For more information, please contact: Richard Prickett / Bill Humphries Patagonia Gold Plc Tel: + 44 (0)20 7409 7444 www.patagoniagold.com

"Meridian's goal is to become a million ounce gold producer by 2008 with costs in the lower quartile of the industry. The growth strategy we have developed to achieve this goal has four main components: leveraging current assets, making grass-roots discoveries, participating in joint ventures, and acquiring other gold companies or properties."

Webcast Alert: Meridian Gold Presentation at Informed Investors Canadian Precious Metals & Mining Virtual Stocks Forum to be Webcast on Tuesday, September 21, 2004, 9:30 am ET -------------------------------------------------------------------------------- PRNewswire 09:57 a.m. 09/15/2004 RENO, Nev., Sep 15, 2004 /PRNewswire via COMTEX/ -- Meridian Gold, Inc. (MDG) (MNG) will present at the following forum: What: Meridian Gold (MDG) (MNG) will give a presentation at Informed Investors Canadian Precious Metals & Mining Virtual Stocks Forum. Paul van Eeden will deliver the forum keynote at 9 am. When: September 21, 2004 @ 9:30 AM Eastern Time Where: h*ttp://www.informedinvestors.com/IIF_Forum.asp?ForumID=85126 How: Live over the Internet -- Simply log on to the web at the address above. Contact: Deborah Liston, Investor Relations Manager, deborah.liston@meridiangold.com If you are unable to attend the live event, the forum will be available via webcast at h*ttp://www.informedinvestors.com/IIF_Forum.asp?ForumID=85126 . Meridian Gold, Inc. is a mid-tier gold producer with world-class mining operations in Chile and a pipeline of promising exploration projects throughout the Americas. Our success to date is based on five grass-roots gold discoveries, a low-cost strategy, and a different yet better approach to balanced growth. Meridian is dedicated to building a better future for our shareholders and employees, contributing to the progress of the communities in which we operate and implementing strict practices designed to preserve our environment. Meridian's goal is to become a million ounce gold producer by 2008 with costs in the lower quartile of the industry. The growth strategy we have developed to achieve this goal has four main components: leveraging current assets, making grass-roots discoveries, participating in joint ventures, and acquiring other gold companies or properties. Over the past 25 years, we have been highly successful in using each of these paths to growth and are confident that future results will keep us on target in our evolution as a million ounce low-cost producer. FORUM CONTACT: Cary Loeser, Informed Investors, 804-327-3407, cloeser@wilink.com Web site: h*ttp://www.informedinvestors.com

Meridian reported exceptional earnings of $0.10 a share due to the El Penon mine in Chile which produced 82,000 ounces of gold in the quarter up from 78,000 ounces. Total cash cost was at $50 per ounce and the elimination of a drag on earnings from recently sold Jerritt Canyon helped results. Mill through-put at El Penon reached record levels in June. The exceptional high grade Dorada vein was extended to 1.2 kilometres in strike length and underground access to Dorada was initiated. Meridian should be mining Dorada high grade material within a year and a half. Meridian has cash of $210 million and should produce 310,000 ounces of gold at a cash cost between $50-$60 an ounce. We like Meridian shares at current levels and believe there is nothing in the shares for Esquel which is stalled at this time. Meridian continues to work with the local community to reverse its stance. We believe that a thawing in the relationship is inevitable and thus there is interesting upside to Meridian shares if there is a move towards putting the Esquel project into production. Buy. hXXp://www.safehaven.com/article-1870.htm