Meridian Gold Announces Fourth Quarter 2005 Results.

RENO, Nev. -- (All dollar amounts in U.S. currency)

Meridian Gold Inc. (TSX:MNG)(NYSE:MDG)is pleased to announce results for the quarter and twelve months ended December 31, 2005. Meridian Gold continues its commitment to its strategy of organic exploration growth, with a focus on returns

FOURTH QUARTER HIGHLIGHTS:

Financial and Operations

- Net earnings pre-impairment of $12.0 million, or $0.12 per share

- Reported net loss of $374 million, or $3.74 per share reflecting the impairment

- Gold production of 75,600 ounces at a cash cost of $15 per ounce

- Record operating cash flows of $26.7 million for the quarter increased cash and short-term investments balances to $281.5 million, including restricted cash

- Mill throughput at El Penon reached 2,520 tonnes per day, a 6% increase over the prior year quarter

- Carrying value of the Esquel asset adjusted by a non-cash after tax value of $378.9 million as a result of a three-year delay in permitting

Exploration

- Largest total gold and silver reserve and resource base at El Penon in its 7-year history

- Two new veins discovered at El Penon last year - Providencia and Dominador

- Proven and probable reserves at El Penon increased to 2.1 million ounces of gold and 76.4 million ounces of silver, after producing 304,000 ounces of gold and 5.5 million ounces of silver

- New high-grade discovery at Mercedes project in Sonora, Mexico

- At least three new zones discovered at the Alhue project in Chile

Environmental and Safety

- El Penon continued to operate without any lost time accidents in the fourth quarter of 2005, adding to our three years of operating history without a lost time accident to any Meridian Gold employee

"This past year of 2005 will prove to be an important year in Meridian Gold's history, notwithstanding the impairment at Esquel," commented Brian Kennedy, Meridian Gold's President and Chief Executive Officer. "We are clearly disappointed in having to make this non-cash adjustment to our financial statements; however, Meridian Gold's efforts continue towards promoting responsible mining in Argentina and earning the trust of the local community. While Esquel could significantly contribute to Meridian Gold's growth in the future, in 2005 we enlarged El Penon in acres and in ounces, we increased our cash balances, we acquired a purchase option into a new vein district in Chile, and we made a new high-grade discovery in Mexico. In 2006, I expect the results of our growth plans will be revealed through the year; I believe our commitment to organic growth will provide superior shareholder returns over the long-run."