Meridian Gold is a mid-tier gold producer with world-class mining operations in Chile and a pipeline of promising exploration projects throughout the Americas. Our success to date is based on six grass-roots gold discoveries, a low-cost strategy, and a different yet better approach to balanced growth. Meridian is dedicated to building a better future for our shareholders and employees, contributing to the progress of the communities in which we operate and implementing strict practices designed to preserve our environment.

Meridian Gold Inc. ("Meridian Gold" or the "Company") (TSX:MNG)(NYSE:MDG) is pleased to announce results for the quarter ended December 31, 2006. Meridian Gold continues its commitment to be the Premier Value Gold Mining Company, with a focus on returns and a dedication to responsible mining, which is reflected in the fourth quarter results as follows:

    RESULTS:

    --  Quarterly net earnings of $6.5 million, or $0.06 per share,
        net of adjustments of $5.0 million, including: $1.2 million in
        G&A for CEO transition costs; $2.2 million in mark to market
        adjustments related to zinc positions; $1.6 million in
        increased ARO liabilities ($11.5 million, $0.12 per share,
        pre-adjustment)

    --  Gold production of 67,900 ounces at a net cash cost of $7 per
        ounce using the by-product method of calculating cash cost
--  Operating cash flow of $25.4 million for the quarter

    --  Continued aggressive exploration campaign on the Mercedes
        project in Sonora, Mexico, which has delineated a total of
        nine veins

    --  Continued development at the Rossi JV project with Barrick
        Exploration; which remains on schedule for production in Q2
        2007

    --  Commenced drill program and metallurgical testing at the
        Jeronimo project in Chile

    --  Successfully complied with the requirements of Section 404 of
        the Sarbanes-Oxley Act

"During 2006 we made significant progress implementing Meridian Gold's strategy for long-term sustainable growth," commented Edward Dowling, Meridian Gold's newly appointed President and Chief Executive Officer. "In Chile, we successfully acquired and integrated the Minera Florida operations into our production portfolio, and we entered into a strategic joint venture with CODELCO on the Jeronimo project. Throughout the year, our exploration team made further discoveries in Chile, at both El Penon and Minera Florida, and at our Mercedes project in Northern Mexico, which holds potential to be Meridian Gold's next operating mine. We continue to strive towards being the Premier Value Gold Mining Company. 
For 2006, total Measured and Indicated Resources increased to 3.6 million ounces of gold versus 3.1 million ounces of gold for 2005 and silver increased to 28.6 million ounces in 2006 versus 22.0 million ounces in 2005. Total Proven and Probable Reserves increased from 2.1 million ounces of gold in 2005 to 2.3 million ounces of gold in 2006 and silver increased to 83.7 million ounces versus 76.4 million ounces in 2005. Prices per ounce assumed for calculating Mineral Reserves were $470 for gold and $7.50 for silver at both El Penon and Minera Florida. The zinc price assumption for calculating Mineral Reserves at Minera Florida was $1,600 per tonne. Mineral Resources for El Penon were developed within a 3.9 gram per tonne gold equivalent grade shell. At Minera Florida, the Mineral Resources were developed within a vein structure solid, using a 2.5 gram per tonne gold equivalent grade cutoff. Mineral Reserves are relatively insensitive to a change in gold price.