VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 05/17/12 -- Paget Minerals Corp. (TSX VENTURE:PGS) ("Paget" or the "Company") and Blue Gold Mining Inc. (TSX VENTURE:BGX) ("Blue Gold") are pleased to announce that they have entered into a non-binding letter of intent 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, "We are pleased to be working with the Blue Gold group and their strong management team, led by Mark O'Dea. Our complimentary skill set combines both extensive technical and corporate experience, with many high profile exploration successes. This transaction will bring 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 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: http://www.pagetminerals.com/i/maps/BallCreek/Mineral-Claims-Ball-15EC9F.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) (click here for JV Area Map of Ball Creek: http://www.pagetminerals.com/i/maps/ballcreek/Ball-Creek-JV-Project-Area.jpg).

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 spending $6M over two years; $2-million, on a firm commitment
    basis, by the first anniversary of the closing date, and $4-million in
    optional expenditures by the second anniversary of the closing date; 

--  Receive an exclusive right, at Blue Gold's election, to earn a further
    14% for an aggregate undivided interest in the Project of 65% by
    incurring an additional $12-million 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, and; 

--  Acquire 9.9%, on a partially diluted basis, of Paget's outstanding
    shares on a private placement basis in units at a price of $0.16 per
    unit (a "Unit"). Each Unit shall be comprised of one common share and
    one half of one common share purchase warrant (each whole warrant, a
    "Warrant"). 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. 

The closing of the transaction is conditional upon satisfactory completion of due diligence by Blue Gold, receipt of all necessary regulatory approvals and the entering into of a definitive agreement. There is no certainty a transaction will be completed.

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

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contacts:
Paget Minerals Corp.
David Volkert
President & CEO
(778) 327-4449
(778) 330-5492 (FAX)
www.pagetminerals.com