Azteca Gold Corp.: Target Intersected at Two Mile

SPOKANE, WASHINGTON, May 27 (MARKET WIRE) --
Matthew Russell, President of Azteca Gold Corp. (TSX VENTURE: AZG) (the
"Company") wishes to provide an update on exploration activities at the
Two Mile Project in the Silver Valley of Idaho, as well as announce a
proposed interim financing.

The Company is pleased to report the intersection of its initial deep
target in hole DDH-006, which is a Sullivan-style sulfide bed beginning
at approximately 10,000 FT and continuing to approximately 10,180 FT. The
mineralization ranges from disseminated to intermittently massive, and is
very fine-grained in nature. Assays are forthcoming, and management
believes this intersection may represent a main sphalerite (zinc sulfide)
- tetrahedrite (silver-antimony sulfide) zone.

"At the time of this press release, DDH-006 is at a depth of 10,268 FT
and is in what appears to be disseminated galena (lead sulfide), with
minor sphalerite and chalcopyrite (copper sulfide), and with strong
stockwork veining predominantly along the axis of the core," said Mr.
Russell. "The nature of the stockwork veining gives us reason to believe
that the next mineralized bed in the series may be primarily galena with
chalcopyrite and sphalerite. We have reset the target depth of DDH-006 to
10,500 FT in anticipation of an extended intersection of primarily galena
mineralization."

"In regards to the geologic model, the prevalence of alternating feldspar
and silicate layers immediately above the mineralized intercept is
further evidence that a Sullivan style system may exist at Two Mile.
While hole DDH-005A showed a similar series of alternating rock types,
the series intersected thus far in hole DDH-006 looks considerably
thicker," emphasized Mr. Russell.

"We want to stress that the apparent deficiency of pyrrhotite (iron
sulfide) within the main mineralized beds makes the Two Mile discovery
remarkably different than the Sullivan deposit. Pyrrhotite appears to
have caused grade-dilution in the desirable minerals at the Sullivan."

The Company will be looking for additional Sullivan rock types as
drilling progress continues. We are analyzing the extent of tourmalinite
within the feldspar, as it was particularly indicative of adjacent
sulfide mineralization at the Sullivan deposit.

As introduced in the last press release, the Company intends to
investigate the continuity of the massive sulfide mineralization between
holes DDH-005A and DDH-006. The Company wishes to emphasize that the
intersection of significant mineralization as described above does not
guarantee grade tenor as intercepted in hole DDH-005A.

The Company also wishes to announce that it contemplating a term loan of
as much as US$ 600,000 to cover near-term drilling and assaying costs at
its Two Mile Project. "Given that assay results from the intersection of
our initial and perhaps subsequent targets at hole DDH-006 are due back
relatively soon, management believes that it would serve shareholders
best to avoid an additional equity raise at this time," said Mr. Russell.
"We have a broad shareholder base that collectively holds over $30
million worth of outstanding warrants, many of which are not far out of
the money at this time. Management also believes it is reasonable to
assume loan repayment out of warrant exercise."

The interim loan contemplated would pay interest at 6%, and issue a
maximum of 900,000 share purchase warrants, each entitling the holder to
subscribe for one common share of Azteca Gold at $0.35 for a period of 2
years from closing, subject to regulatory approval. It is anticipated
that insiders may provide a majority of the contemplated financing.

The information contained in this news release has been reviewed and
approved by Matthew Russell, President and CEO, the Company's Qualified
Person as defined in National Instrument 43-101.

WARNING: the Company relies upon litigation protection for "forward
looking" statements. The information in this release may contain
forward-looking information under applicable securities laws. This
forward-looking information is subject to known and unknown risks,
uncertainties and other factors that may cause actual results to differ
materially from those implied by the forward-looking information. Factors
that may cause actual results to vary material include, but are not
limited to, inaccurate assumptions concerning the exploration for and
development of mineral deposits, currency fluctuations, unanticipated
operational or technical difficulties, changes in laws or regulations,
the risks of obtaining necessary licenses and permits, changes in general
economic conditions or conditions in the financial markets and the
inability to raise additional financing. Readers are cautioned not to
place undue reliance on this forward-looking information. The Company
does not assume the obligation to revise or update this forward-looking
information after the date of this release or to revise such information
to reflect the occurrence of future unanticipated events, except as may
be required under applicable securities laws.

Shares issued: 177,862,964

The TSX Venture Exchange has not reviewed
and does not accept responsibility for the adequacy or accuracy of this
release.

Contacts:
Azteca Gold Corp.
Jon Slizza
VP of Finance
(509) 981-2020
Email: info@azteca-au.com

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