Mineral & Fin Regulatory News (MAFL)

26 July 2011

ATHOL GOLD LIMITED

(AIM: AHG)

("AHG" or the "Company")

NAV Announcement

The Board of AHG today announces that the Company's fully diluted NAV has increased from 0.578p on 26th April 2011 (after the issue of shares for performance fees for that quarter) to 0.585p as at 26th July 2011 - an increase of 1.3%.

AHG's investment strategy is to invest in gold and precious metal companies quoted on stock exchanges in the UK, Canada and Australia. Its investments and assets as at 26th July 2011 are split as follows:

In calculating the NAV the fully diluted number of shares in issue of 589,339,680 has been used.

According to the management agreement, t1ps Investment Management (IOM) Limited (TIM) is entitled to a fee payable quarterly in shares of 25% of the uplift in NAV per share in each quarter with no fee payable on the percentage of fully diluted equity owned by funds managed by TIM. However, with a watermark set at 0.617p (the NAV for the prior quarter before the issue of performance fee shares), no management fee is due as of this quarter.

AHG will next announce the NAV as at 26th October 2011.

Commenting on the NAV update, Tom Winnifrith, Chief Investment Officer of Athol Gold, said:

"The modest increase in NAV per share from 0.578p to 0.585p is disappointing but reflects the weak market in mining juniors. This has started to change in recent weeks as gold has pushed through $1600 per oz and we expect it to change dramatically over the coming quarter as gold pushes on towards and through $1700 per oz and as M&A activity in the sector picks up.

"We note that one of our investments, unlisted Metallum PLC has already succumbed to an offer from Focus Gold from the US which we welcome and will benefit from. Moreover we note that two of our other major investments are on the verge of corporate actions which - we expect - to drive a material re-rating of their shares. Sovereign Mines of Africa should complete its move from PLUS to AIM on 28th July 2011 while we expect imminent news from Ascot Mining - our largest holding - including the publication of a Competent Persons Report which should prompt it to move to AIM within the next few weeks. We are confident that these dual escapes from PLUS will attract wider investor interest and prompt material re-ratings which will have a significant impact on our NAV."

"In a recent interview with my late colleague, the legendary Charles Wyatt, the founder of Minesite, mining expert Rod Whyte stated: 'Well, the quality juniors have now recovered enough to raise money. There is no shortage of available funds, if you dilute the shareholders, and lots of juniors are now running significant drill programs, particularly in West Africa. The likes of Cluff Gold, Pelangio, Legend Gold and Resolute spring to mind. Assay results are coming through which will upgrade and de-risk projects. As new discoveries become common, share prices will up run on discoveries, and soon, on the expectation of discovery. Assuming gold challenges US$1800 per ounce later this year, investor greed will overcome fear of failure. Companies with new discoveries will become market darlings again and will double or triple.'

"I concur with the views of Rod and Charles wholeheartedly. Nine months ago when we took over Athol Gold, the NAV per share was 0.22p and the company was on the verge of losing its AIM listing. It is now soundly financed and on the basis of the outlook for our key investments as well as for the sector as a whole I have never been more optimistic about the near term prospects for Athol Gold."

Ends

Enquiries:

Athol Gold Limited

Jennifer Allsop

+44 7788 541744

T1ps Investment Management (IoM) Ltd

Tom Winnifrith

+44 1624 676848

Libertas Capital

Sandy Jamieson

Tel: 0207 569 9650

Bishopsgate Communications

Laura Stevens/ Giang Nguyen

Tel: 020 7562 3350