Meridian Gold, Inc. - New High Grade Vein Discovery at El Penon, along with Additional Significant Exploration Results

Business Wire, Sept 4, 2007

RENO, Nev. -- Meridian Gold, Inc. ("Meridian Gold" or the "Company") (NYSE:MDG) (TSX:MNG) today announced the exciting discovery, at its flagship El Penon mine in Chile, of another new high-grade vein and the extension of the Al Este vein, forming a major new nucleus of high grade gold and silver mineralization. Meridian Gold also reported on further significant drilling success at the Mercedes project in Mexico, encouraging exploration results from its La Pepa project in Chile and the acquisition of a 65% interest in the Membrillo and Chancon mining districts adjacent to Minera Florida.

Highlights include:

* New high-grade vein discovery at El Penon, with the best drill result to-date of 8 meters at 17.7 grams per tonne gold and 329 grams per tonne silver;

* Extension of the Al Este vein at El Penon by 500 meters to the north for a total strike length of 3,000 meters and definition of a new ore shoot;

* At the Company's 100% owned Mercedes project in Mexico, a high-grade ore shoot has been identified at depth on the Klondike vein;

* Definition of the Cavancha gold porphyry deposit at La Pepa, Chile; and

* Consolidation of properties in the Membrillo and Chancon districts with Minera Florida.

Ed Dowling, President and CEO of Meridian Gold, said: "These exciting developments demonstrate Meridian Gold's ability to add value through the drill bit, delivering superior returns to shareholders while growing our company organically."

El Penon, Chile

New High-Grade "Bonanza" Vein

At El Penon the Company has discovered another new high grade vein. Drilling 300 meters to the northeast of Al Este has intersected a new, previously untested mineralized vein structure, named Bonanza. This new vein has been delineated along a minimum strike length of 300 meters and, importantly, remains open in all directions. A total of seven reverse circulation drill holes have been completed to date and three drills continue to test the new structure along strike and to depth.

    Table 1: New High Grade Bonanza Vein Drill Results

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    Hole           From      To     Horizontal       Au          Ag
                   (m)      (m)      Width (m)     (g/t)       (g/t)
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    SPA-0124       415      420        2.35         7.48       157.3
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    SAE-0005       436      437        0.45         5.90        51.5
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    SAE-0006       448      451        1.54        38.83        68.2
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                   456      460        2.06         7.53       263.8
    -----------------------------------------------------------------
    SAE-0008       414      427        5.69        33.22       734.4
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    SAE-0009       309      310        0.47        16.20       743.0
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    SAE-0010       364      366        0.94        51.37        66.0
    -----------------------------------------------------------------
    SAE-0012       436      455        8.00        17.66       329.3
    -----------------------------------------------------------------

The Al Este Extension North

Drilling on the Al Este vein itself has resulted in the discovery of a new ore shoot, which extends the strike length of the vein northwards for 500 meters, to a total of 3,000 meters. This vein remains open along strike and at depth.

    Table 2: Al Este Extension Drill Results

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    Hole           From      To     Horizontal       Au          Ag
                   (m)      (m)      Width (m)     (g/t)       (g/t)
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    SPA-0105       355      357        0.92        18.45       755.5
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    SPA-0119       407      408        0.35         2.43       131.0
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    SPA-0126       396      397        0.50        34.10     1,522.0
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    SAE-0002       412      413        0.52         9.00       367.0
    -----------------------------------------------------------------

Stabro Kasaneva, General Manager of the El Penon mine, stated, "The new high-grade Bonanza vien and the Al Este vein extension are parallel and strike North - South, similar to Quebrada Colorada, the mainstay of the Company's production for many years. This strike orientation has historically been the most favorable orientation in the region for the discovery of high-grade gold and silver mineralization. These two discoveries, added to the previously announced Esmeralda vein form a new nucleus of high-grade gold and silver mineralization at El Penon which is expected to have sufficient critical mass to become a future center for cost effective mining operations. This discovery supports our previously reported view that El Penon is located within a major gold district. Meridian Gold's land position in this district, surrounding El Penon, exceeds 750 square kilometers."