MILL CITY GOLD CORP. - COMPLETION OF $1.5 MILLION FINANCING

FOR IMMEDIATE RELEASE TSX VENTURE SYMBOL "MC"

CALGARY, Oct. 20 /CNW/ - MILL CITY GOLD CORP. ("Mill City" and/or the "Company") is pleased to announce that it has closed the financing announced October 4, 2010.  The Company has issued a total of 9,100,000 "flow-through" common shares (the "FT Shares") at a price of $0.10 per FT Share and 5,900,000 units (the "Units") at a price of $0.10 per Unit for gross proceeds of $1,500,000.  Each Unit consists of one common share in the capital of the Company (a "Share") and one-half of one common share purchase warrant of the Company (each whole warrant, a "Warrant").  Each Warrant is exercisable to acquire one common share in the capital of the Company at an exercise price of $0.15 until October 20, 2012.

Primary Capital Inc. received a cash commission of 6% of the gross proceeds raised and broker warrants ("Broker Warrants") equal to 10% of the aggregate number of FT Shares and Units issued pursuant to the private placement (not including the Units subscribed for by a director of the Company as further described below).   A total of 1,490,000 Broker Warrants were issued, each of which is exercisable to acquire one Unit at a price of $0.10 per Unit until October 20, 2012.

The FT Shares, Shares and any common shares issuable upon exercise of Warrants and Broker Warrants are subject to a hold period and may not be traded until February 21, 2011 except as permitted by applicable securities legislation and the rules of the TSX Venture Exchange.

Gordon McKinnon, a director of the Company, acquired 100,000 Units as a subscriber under the private placement.   The participation by an insider in the private placement is considered to be a "related party transaction" as defined under Multilateral Instrument 61-101 ("MI 61-101").  The transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of the securities being issued nor the consideration paid exceeds 25% of Mill City's market capitalization.

The Company intends to use the gross proceeds from the FT Share portion of the private placement to advance exploration on the Croxall property located in the West Timmins Gold District and the GP2 property located in the James Bay Lowlands region, northern Ontario and the net proceeds from the Unit portion of the private placement for general working capital purposes.

ON BEHALF OF THE BOARD OF DIRECTORS

"James R. Brown"

James R. Brown

Chairman, President & CEO

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

NOT FOR DISSEMINATION OR DISTRIBUTION IN THE UNITED STATES AND NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES.

Cautionary Statement Regarding Forward-Looking Information

All statements and other information contained in this press release about anticipated future events or results constitute forward-looking statements.  Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "believe", "plan", "estimate", "expect" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions. Forward-looking statements are subject to business and economic risks and uncertainties and other factors (including, among others, risks related to option and joint venture arrangements and actual results of current exploration activities) that could cause actual results to differ materially from those contained in the forward-looking statements.  Forward-looking statements are based on estimates and opinions of management at the date the statements are made.  The Company does not undertake any obligation to update forward-looking statements even if circumstances or management's estimates or opinions should change.  Investors should not place undue reliance on forward-looking statements.

For further information:

please contact James R. Brown at 403-640-0110 or visit the Company's website at www.millcitygold.com