JMG Exploration Inc. Announces Settlement of Defaulted Loan to Newco Group Ltd.

PASADENA, Calif.--(Business Wire)--
JMG Exploration, Inc., ("JMG" or the "Company") (OTC:JMGEE) announced that it
entered into a Settlement Agreement between Newco Group Ltd. ("Newco"), and Iris
Computers Ltd. (Iris) in regards to a defaulted $3 million loan to Newco. The
Settlement Agreement provides that all rights, claims and demands of all parties
are settled in full upon JMG`s surrender of 1,427,665 shares of Iris held as
collateral for the loan and JMG`s receipt of $1,900,000. Payment to JMG is to
occur within one week of receiving statutory approvals required by Indian laws
or December 1, 2009, whichever is later. JMG will record a gain on settlement of
$750,000 in the 4th quarter of 2009.

JMG also announced that Reg Greenslade has resigned as Chairman and will no
longer serve as a director. Joseph Skeehan will replace Mr. Greenslade as
Chairman. Tom Jacobsen was also appointed President of JMG Canada Limited and
effective December 15, 2009, Justin Yorke will replace Mr. Skeehan as Chief
Executive and Financial Officer.

About JMG: JMG Exploration, Inc., which was incorporated under the laws of the
State of Nevada on July 16, 2004, explores for oil and natural gas in the United
States and Canada.

This press release contains forward-looking statements. The words "proposed",
"anticipated" and scheduled" and similar expressions identify forward-looking
statements. Forward-looking statements are necessarily based upon a number of
estimates and assumptions that, while considered reasonable by management, are
inherently subject to significant business, economic and competitive
uncertainties and contingencies which could cause actual results to differ
materially from the future results expressed or implied by the forward-looking
statements. Such statements are qualified in their entirety by the inherent
risks and uncertainties surrounding future expectations.The following factor,
among others, could cause actual results to differ from those described in the
forward-looking statements in this document: the results of JMG`s review of the
impact of the corrected calculation of depreciation, depletion and amortization
and other factors described in JMG`s filings with the Securities and Exchange
Commission ("SEC"), which are available at the SEC`s Web site
(http://www.sec.gov). JMG is not under any obligation, and expressly disclaims
any obligation, to update, alter or otherwise revise any forward-looking
statement, whether written or oral, that may be made from time to time, whether
as a result of new information, future events or otherwise.

JMG Exploration, Inc.
Joe Skeehan, President and CEO
626-585-9555
or
Justin Yorke, Director
626-310-0482

Copyright Business Wire 2009