Mineral & Fin Regulatory News (MAFL)

Athol Gold Limited

 ("Athol Gold" or the "Company")

 Placing to raise £603,000

Athol Gold is delighted to announce that it has raised a total of £603,000 via the issue of 18,833,333 ordinary shares at 0.6p and £490,000 of convertible loan notes ('the Loan Notes'). The new ordinary shares have been placed with clients of Rivington Street Corporate Finance Limited, and the Loan Notes have been placed with SF T1ps Smaller Companies Gold Fund. The Loan Notes do not carry a coupon, are redeemable in December 2013 and are convertible at any time, at the discretion of the note holder, into new ordinary shares at 0.6p per share. On full conversion of the Loan Notes, the note holder would receive 81,666,666 new ordinary shares of 0.25p in the Company.

 As previously stated, Athol Gold's investment strategy is to invest in gold and precious metal companies quoted on stock exchanges in the UK, Canada and Australia. The new monies will be used to further exploit investment prospects that present themselves as the Company focuses on value opportunities.

On Admission, the placing shares will rank pari passu with the existing ordinary shares of 0.25p each ("Ordinary Shares") in the Company. Application has been made for admission of the Placing Shares to trading on AIM. Admission is expected to occur on 7 September 2011.

Jennifer Allsop, Executive Chairman, commented: "With the gold price at around $1820 and rising and shares in many gold mid-caps trading on multiples of less than 2 the Board is delighted that it has increased funding to take advantage of these opportunities."

Following the issue of these shares, the Company's enlarged issued share capital will comprise 596,263,693 ordinary shares with one vote per share.

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