£1.2m fundraising with Director participation

17 October 2012

Orogen Gold Plc

("Orogen Gold" or "the Company")

Share placing and subscription by Directors raising GBP1.2 million

Highlights

·; £1.2 million raised secures funding for Deli Jovan gold project into 2013 and covers earn-in to 75% of the project

·; The Board, in its entirety, has subscribed to the share placing

·; Additional funding will also allow more aggressive targeting of new project opportunities

Ed Slowey, Chief Executive of Orogen Gold comments:

"We are very pleased to have completed this successful placing which represents a further strong show of support by the market in the Company and its management. The funds will allow us to increase our interest in the Deli Jovan gold project to 75% through additional work on the property into 2013. Orogen Gold will also be well placed to more aggressively follow through on new project acquisition which will help to grow the Company.

Since our previous share placing last year, we have so far completed the work programme at Deli Jovan in line with our work plan, delivering the very encouraging underground and drill results already reported. Further results from the drilling programme can be anticipated within the coming weeks and we look forward to reporting on those as they come through."

Share Placing

Orogen Gold Plc (AIM:ORE), the AIM listed mineral exploration company focussed on gold exploration and development of the Deli Jovan gold project in Serbia, announces that it has conditionally placed, via XCAP Securities plc, 240,000,000 new ordinary shares ("Placing Shares") of 0.1p each ("Ordinary Shares") with investors at a price of 0.5p per share thereby raising £1.2 million before costs (the "Placing") for net proceeds to the Company of approximately £1,135,000. The Placing Shares will represent approximately 11.19 % of the Company's enlarged share capital.

Background to and Reasons for the Placing

Orogen Gold has an option to increase its current 55% interest in the Deli Jovan gold project in Serbia to 75% by financing CAD2.0 million (Canadian Dollars) of exploration expenditure on the project. The balance of the project is held by Canadian Listed (TSX.V:RMC) Reservoir Minerals Inc.

The net proceeds of the Placing will be used, inter alia, to continue to finance the ongoing exploration and evaluation expenditures associated with the Deli Jovan gold project. Together with existing cash resources, the net proceeds of the Placing enable the Company to complete the Deli Jovan 75% earn-in.

The net proceeds of the Placing will also enable the Directors to continue to seek opportunities to introduce a new project or projects to the Company.

Directors' Participation

The Directors are participating in the Placing as follows:

The Directors' participation in the Placing is a related party transaction under the AIM Rules. Since all of the Directors are participating in the Placing, there are no directors who are independent of the transaction. The Company's nominated adviser, Zeus Capital, considers the terms of the transaction are fair and reasonable insofar as the Company's shareholders are concerned.

Issue of the Placing Shares

The Placing is solely conditional upon admission of the Placing Shares to AIM ("Admission").

Application will be made to the London Stock Exchange for the Placing Shares to be admitted to trading on AIM. It is expected that such Admission will become effective and that dealings will commence on or around 22 October 2012.

The Placing Shares will, when issued, rank pari passu in all respects with the existing Ordinary Shares, including the right to receive dividends and other distributions declared following Admission. 

Total Voting Rights

For the purposes of the Disclosure and Transparency Rules, the Company's total issued share capital following the completion of the Placing will consist of 2,145,172,453 ordinary shares of 0.1p each with one voting right per share. There are no shares held in treasury. 

The above figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company, under the Disclosure and Transparency Rules.

Enquiries:

Notes to Editors

The Deli Jovan gold project is in eastern Serbia, the site comprising two shallow underground gold mines at Rusman and Gindusa, about 6 kilometres apart along a major shear zone. Production at the mines was halted in the 1930s due to the impending Second World War, and was never restarted. The mines lay untouched for over 70 years until Orogen Gold reassessed, dewatered and restarted exploration at Deli Jovan in 2011.