Paget Minerals and Blue Gold Mining Sign Definitive Agreement to Explore Three Gold-Rich Porphyry Targets in British Columbia

Paget Minerals Corp. (TSX VENTURE:PGS) ("Paget" or the "Company") is pleased to
announce that it has entered into a definitive agreement with Blue Gold Mining
Inc. (TSX VENTURE:BGX) ("Blue Gold") whereby Blue Gold has the option to earn up
to a 65% interest in three porphyry targets (collectively referred to as "the
Project") within Paget's 100%-owned Ball Creek Project located in British
Columbia's Golden Triangle region. The Project includes the Rainbow gold
porphyry target, the Main gold-copper porphyry target, and the Cliff copper-gold
porphyry target, of which Rainbow and Main have had some preliminary drilling by
Paget.


David F. Volkert, President and CEO of Paget, stated, "This transaction brings
significant funds to aggressively explore the three gold-rich porphyry targets
at Ball Creek and Blue Gold's concurrent investment in Paget demonstrates their
support for our team and prospective project portfolio. We will retain 100%
ownership of the 379 square kilometers of adjacent Ball Creek Project claims
containing two copper-gold porphyry and four epithermal gold-silver earlier
stage targets."


THE PROJECT

The total Project area covers approximately 145 square kilometers located in the
Golden Triangle, northwestern British Columbia. The Project is well situated
only eight kilometres west of Highway 37 and an airstrip (Burrage) and 38
kilometres from the new Northwest Transmission Line transfer station at Bob
Quinn (due for completion in 2014). The Golden Triangle region is known to host
several world class gold and copper-gold deposits and the prospective Ball Creek
Project area includes multiple gold, gold-copper and copper-gold porphyry and
epithermal gold targets (click here for Paget Mineral Claims at Ball Creek and
the area covered by the definitive agreement:
http://www.pagetminerals.com/i/maps/BallCreek/Ball_Creek_Area_of_Interest_Full_Claim.jpg).


Main Target

The Main Target is a gold-copper porphyry located in the southeast of the Ball
Creek Project. Limited, relatively shallow drilling was completed in 2011 by
Paget, with initial results returning 0.35 grams per tonne gold and 0.14% copper
over 180 metres in hole BC-11-03. Historical drill results include 0.75 g/t gold
and 0.22% copper over 192 metres in hole 74-3 and 0.58 g/t gold over 163 metres
in hole 74-2. Porphyry mineralization has been mapped and drilled over an area
of 1,250 x 400 metres, and remains open in all directions.


Rainbow Target

The Rainbow Target is a gold porphyry located four kilometres from the Main
Target with mineralization hosted in sheeted and banded copper-gold-quartz
veinlets. The banded veins, high gold-to-copper ratio, and lack of alteration
selvages closely resemble the mineralization style of porphyry gold deposits in
the Maricunga belt in Chile. In 2011, Paget drilled the first-ever holes on the
target, returning 0.76 g/t gold over 91 metres, including 1.13 g/t gold over 22
metres, starting from surface in hole RN-11-01.


Cliff Target

The Cliff Target is a copper-gold porphyry measuring two square kilometres. It
lies south of the Main Target, separated by 600 metres of propylitic alteration
and gossanous outcrops, indicating that the two porphyries may be connected.
Stockwork veining is coincident with a magnetic low measuring 1,700 x 400 metres
with assays up to 0.74% copper and 0.15 g/t gold. Bedrock chip sampling of a
continuously-mineralized, 270 metre section, averaged 0.2% copper (sampling in
1971).


TERMS OF THE AGREEMENT

Pursuant to the transaction, Blue Gold will:



--  Receive an exclusive right to earn a 51% undivided interest in the
    Project by incurring $2 million in expenditures, on a firm commitment
    basis, by the first anniversary of the closing date, and $4 million in
    expenditures (optional) by the second anniversary of the closing date.
    Blue Gold shall become operator upon closing of the transaction; 

--  Receive an exclusive right, at Blue Gold's sole election, to earn a
    further 14% for an aggregate undivided interest in the Project of 65% by
    incurring an additional $12-million in expenditures in the three-year
    period following the 51% earn-in date; 

--  Receive a right of first offer for any direct or indirect sale,
    transfer, option, joint venture or other transaction on any of the
    claims outside the project area that form part of Paget Mineral's Ball
    Creek Project; 

--  Upon the TSX Venture Exchange granting final approval to the
    transaction, acquire 6,054,212 units of Paget on a private placement
    basis at a price of $0.16 per unit for gross proceeds of $968,673.92.
    Following the private placement, Blue Gold will hold 9.9% of Paget's
    outstanding common shares on a partially diluted basis. Each unit shall
    be comprised of one common share and one half of one common share
    purchase warrant (each whole warrant, a "Warrant"), resulting in the
    issuance by Paget to Blue Gold of 6,054,212 common shares and 3,027,106
    Warrants upon closing of the private placement. Each Warrant shall be
    exercisable into one common share of Paget at an exercise price of $0.30
    for a period of 2 years following the closing of the transaction; and 

--  Blue Gold shall maintain a pre-emptive right to maintain its equity
    ownership position in Paget for a period of three years from the date of
    closing of the private placement. 



The closing of the transaction is conditional upon receipt by Paget and Blue
Gold of final TSX Venture Exchange approval and the private placement is
conditional upon receipt by Paget of final TSX Venture Exchange approval.


About Paget Minerals Corp.

Paget Minerals Corporation is a publicly traded resource company focused on
mineral exploration and the advancement of the company's priority Ball Creek
Project in British Columbia. The company hosts a 52,442-hectare, contiguous
mineral tenure package in the Golden Triangle - Iskut Mineral District located
just 8km west of Highway 37 and only 36km northwest of the new Northwest
Transmission Line Substation at Bob Quinn and neighbors three major mine
development projects in the Golden Triangle -- Galore Creek, Schaft Creek and
Red Chris. In 2012, Paget will focus its BC exploration program on the Ball
Creek Project, as well as advancing its exploration in Mexico. Paget also
maintains its equity position in Trident Gold Corp. exploring for gold in
Colombia. David Volkert, President and CEO, serves as the Qualified Person under
the definitions of NI 43-101.


On Behalf of the Board of Paget Minerals Corp.,

David F. Volkert, President & CEO
Paget Minerals Corp. (TSXV:PGS)
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