MAY Meadow Bay Gold Corp (delisted)

Meadow Bay Capital Corporation ("Meadow Bay") (TSX VENTURE:MAY) announced on
January 20, 2011 that it has entered into an arm's length Letter of Intent dated
January 20, 2011 to acquire all of the issued and outstanding common stock of
Desert Hawk Resources Inc. ("Desert Hawk"), a private Delaware corporation. The
purpose of this news release is to provide additional facts which were not
disclosed in the January 20th news release and for this purpose the additional
information has been included hereunder. Desert Hawk is a mining and exploration
company with three gold projects in Nevada including an option on the former
producing Atlanta Gold and Silver Mine, the Colorback Gold Project and the
Spruce Mountain Molybdenum, Copper, Silver Project. On closing and subject to a
definitive agreement and other customary conditions, including but not limited
to, TSX Venture Exchange ("TSXV") approval, Meadow Bay will issue 7.5 million
common shares to the shareholders of Desert Hawk. Meadow Bay will pay a
US$100,000 non-refundable deposit to Desert Hawk and upon closing make a further
US$237,500 payment.


Meadow Bay has engaged Casimir Capital Ltd. as a placement agent in connection
with a US$10 million brokered equity financing to be priced in the context of
the market. US$6 million of the proceeds of the financing will be used to
exercise the purchase of the Atlanta Mine and the balance retained for working
capital to fund ongoing exploration and mine development. The business plan will
include the reinstatement of production at the Atlanta Mine. The Atlanta Mine
produced 1.5 million tons of ore containing 0.09 ounces gold/ton and 1.25 ounces
silver/ton and recovered 121,000 ounces of gold and 800,000 ounces of silver
during the period 1975 to 1985 based on historic production records from the
Bobcat Properties Inc.-Standard Slag Production Joint Venture. The remaining
indicated resource of 338,520 ounces gold (6.21 million tons grading 0.054
oz/ton Au) and inferred resource of 125,960 ounces of gold (3.07 million tons
grading 0.041 oz/ton Au) and indicated resource of 3.1 ounces of silver (6.21
million tons grading 0.506 oz/ton Ag) and an inferred resource of 0.7 million
ounces of silver (3.07 million tons grading 0.236 oz/ton Ag) has been estimated
by previous workers which is not compliant with standards as set out in National
Instrument 43-101. This historical resource is based upon an internal study
completed by Kinross Gold U.S.A. Inc. during the period of 1997-1998. Kinross
performed extensive field mapping and sampling plus along with drilling of
approximately 80 RC holes for a total of 54,255 feet. This drilling combined
with the prior drilling by Gold Fields with 11 core holes (9,286 feet) and 71
reverse circulation holes (46,735 feet) and the drill program by Standard Slag
provides the database for the internal resource estimate. Block models were
prepared and resources calculated based upon various cut-off grades. The
reported historical resources were calculated at a cut-off grade of 0.2 oz/ton
Au.


As above is a pre-2001 historical resource estimate, readers are cautioned that
a Qualified Person has not done sufficient work to classify the historical
estimate as current mineral resources and the issuer is not treating the
historical estimate as current mineral resources and the historical estimate
should not be relied upon.


The mine development plan will include substantial pit expansion and capital
expenditures to refurbish the mining equipment and near term production
potential. In addition to the excellent near-term development aspect of the
project, Meadow Bay considers the Atlanta Mine to offer excellent exploration
and development upside by drilling extensions to the known mineralization and
larger scale production than previous mining through both pit-extension and
possibly underground mining. As a feasibility study has not been completed there
is no certainty the proposed operation will be economically viable. Closing of
the equity financing is subject to, among other things, TSXV approval.


The Colorback Gold Project is on the Battle Mountain trend 12 miles north of
Pipeline. The property is host to both surface gold targets and a lower-plate
Carlin-Style gold system. Previous surface sampling contains gold values as high
as 1 ounce per ton and near surface intercepts in upper plate chart considered
leakage from the deeper system.


Tim Master is the qualified person under National Instrument 43-101 and has
reviewed the contents of this news release. Mr. Master is not independent of
Meadow Bay as he is the President and Chief Operating Officer of Desert Hawk.


This press release shall not constitute an offer to sell or the solicitation of
an offer to buy any securities of Meadow Bay or any other entity, nor shall
there be any sale of these securities in any state or jurisdiction of the United
States in which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such state or
jurisdiction. The securities described herein have not been and will not be
registered under the United States Securities Act of 1933, as amended, and may
not be offered or sold in the United States or to a U.S. person absent an
exemption from the registration requirements of such Act.


This press release includes certain "forward-looking statements" within the
meaning of the United States Private Securities Litigation Reform Act of 1995
and "forward looking information" within the meaning of Canadian securities
laws. There can be no assurance that such statements will prove to be accurate,
and actual results and future events could differ materially from those
anticipated in such statements. Important factors that could cause actual events
and results to differ materially from Meadow Bay's expectations include the need
to satisfy the conditions set forth in any agreement entered into in connection
with the Desert Hawk transaction and the equity financing; the need to satisfy
regulatory and legal requirements with respect to the Desert Hawk transaction
and the equity financing; risks related to the exploration stage of Meadow Bay's
projects; market fluctuations in prices for securities of exploration stage
companies; and uncertainties about the availability of additional financing.
Trading in the securities of Meadow Bay should be considered highly speculative.
Meadow Bay does not intend, and does not assume any obligation, to update any
forward-looking statements, other than as required by applicable law.


The press release makes reference to historical estimates. The historical
estimates are by definition herein not NI 43-101 compliant and are included
herein in for historic context and completeness. There can be no assurances that
any of the historical estimates will be able to be categorized as a NI 43-101
compliant resource or reserve category or demonstrate any economic viability.
Investors are cautioned not to rely on the historical estimates when making
their investment decisions.

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