SGZ.L Regulatory News (SGZ)

 Scotgold Resources Limited

Exploration Update - River Vein and Beinn Udlaidh Vein Areas

River Vein Area

·; High grade rock chips continue at River Vein including

o 194.6 g/t Au, >200g/t Ag,

o 103.2 g/t Au, 76.6 g/t Ag

·; Vein exposure extended to +30 metres

·; Highly anomalous molybdenum values in narrow fractures with altered aplitic margins

o 7 samples from 20 above 0.1% Mo

·; Genetic models for possible Au and Mo occurrences under investigation

Beinn Udlaidh Vein NE extension

·; High grade rock chips at NE extension

o Confirmation of previous high grade outcrop including

o 73.3g/t Au, >200g/t Ag

o 17.7g/t Au, >200g/t Ag

·; Vein traced for 1900m on strike

Scotgold Resources Limited ("Scotgold" or the "Company") (ASX: SGZ, AIM: SGZ) is pleased to provide an update of exploration results over the Beinn Udlaidh project area.

Recent follow up outcrop rock chip sampling from vein systems located by fieldwork continue to return high gold and silver grades including:

·; River Vein Gold vein - 194.6 g/t Au, >200g/t Ag and 103.2 g/t Au, 76.6 g/t Ag

·; River Vein Molybdenum mineralisation - 7 from 20 samples >0.1% Mo,

·; Beinn Udlaidh North East extension - 73.3g/t Au, >200g/t Ag and 17.7g/t Au, >200g/t Ag

(A map showing these locations is available at www.scotgoldresources.com under ASX releases as Figure 1).

Scotgold's Chief Executive Officer, Chris Sangster said, "Scotgold continues to be encouraged by the high grade gold results from the River Vein area and is further investigating the significance of the separate high molybdenum values. Further confirmation of the extension to the Beinn Udlaidh vein adds significantly to the potential of this target".

Further detailed field mapping, rock chip sampling, AQ drilling and possible geophysics and initial deep drilling are planned for the area in 2011.

Background

The River Vein area is located five kilometres northwest of the Cononish gold and silver deposit and outside the boundaries of the Loch Lomond and Trossachs National Park (a map (Figure 1) showing the area can be found at www.scotgoldresources.com under ASX releases).

Outcrop is confined to rivers and burns due to extensive glacial till cover, in many places, deeper than 10 metres throughout Glen Orchy.

Previous mapping and outcrop sampling from Areas A, B and C within Glen Orchy (see Press Release 17th August 2010 - High Gold and Silver Grades at Beinn Udlaidh) reported narrow quartz sulphide veins in the area referred to as Area A, trending approximately 300° with high gold grades and additionally in Area A, a highly anomalous molybdenum value. These quartz sulphide veins returned exceptionally high gold assays of 383.2 g/t Au with 90.7 g/t Ag, 321.5 g/t Au with 102 g/t Ag, and 197.3 g/t Au with 69.8 g/t Ag whilst a single sample on a separate mineralised fracture assayed 6,206ppm Mo.(See Figure 2).

Further details regarding follow up on Area B were reported previously on 28th October 2010. A map showing the location of the results from previous sampling can be found at www.scotgoldresources.com under ASX releases.

At Area B a grab sample between veins one metre apart assayed 145.5g/t Au and 28.5g/t Ag; other high gold values in grab samples from the narrow quartz veins in this area included 171.2g/t Au and 49.2g/t Ag, 59.0 g/t Au and 9.8g/t Ag, 134.5g/t Au and 31.8g/t Ag and 15.0g/t Au and 7.7g/t Ag.

Recent Results

Subsequent detailed mapping and sampling over a portion of Area A has defined a quartz sulphide vein rich in gold as well as several aplitic fracture zones, rich in molybdenum.

A total of 27 rock chip samples were collected from separate areas in order to trace the gold bearing vein across the river as well as to test the extent and grade of the molybdenum mineralisation across the zone. Figure 3 at www.scotgoldresources.com under ASX releases shows the River Vein Area A and the location of these recent results. Full results are shown in Appendix A.

The gold bearing vein has now been traced from its discovery location, northwest, across the river to the bank for a distance of 30 metres, where it disappears under several meters of glacial till. The seven samples on the gold vein returned peak values of 194.6 g/t Au with >200 g/t Ag and 103.2 g/t Au with 76.6 g/t Ag.

The narrow molybdenum bearing fractures are currently only exposed in the river bed before disappearing under glacial till. They trend approximately northeast - southwest and are spaced at 1 - 5 metre intervals. The aplitic margins containing the molybdenum mineralisation vary from 1cm to 20cms wide. Seven samples (from twenty) of the aplitic fractures reported values of molybdenum in excess 500g/t (the upper calibration limit of the assay method used (ICP - MA/UT)) and were submitted for re-assay at a higher upper calibration limit - all seven samples returned in excess of 1000 ppm (0.1%) Mo.

Scotgold is further researching a possible genetic model for gold and molybdenum occurrences in order to guide future exploration in the area. Of particular interest are the Molybdenum and Tungsten showings in the nearby Starav Granite complex and a large gravity low possibly associated with the granite and trending into the River Vein and Beinn Udlaidh areas (see Figure 4 at www.scotgoldresources.com under ASX releases).

Future exploration is likely to include further mapping of the high grade gold and molybdenum mineralisation in the area to determine the orientation of any possible extensions under the adjoining glacial till cover, initial AQ drilling and possible geophysics and deeper NQ drilling.

Beinn Udlaidh Vein - North East Extension

Ennex sampling in the Allt Ghamhnain area (Beinn Udlaidh Vein North East extension, see Figure 5 at www.scotgoldresources.com under ASX releases) returned an outcrop sample of 11.7 g/t Au with 2.6 g/t Ag from a white quartz sulphide vein and a boulder upstream ran 21.75 g/t Au just below another barren quartz vein.

Initial sampling by Scotgold to follow-up the Ennex sampling located the quartz sulphide vein outcrop and samples returned values of 47.58 g/t Au with >200 g/t Ag and 46.28 g/t Au with >200 g/t Ag.

Recent rock chip sampling as further follow up to these on the vein returned samples of 73.2 g/t Au with >200 g/t Ag and 17.7 g/t Au with >200 g/t Ag. Full results are given in Appendix B.

The results confirm the extension to the Beinn Udlaidh vein which is now traced for over 1900 metres and the vein represents a significant target for further exploration.

Further trenching and AQ drilling and possible geophysics and deeper drilling are planned for 2011.

Chris Sangster

Managing Director

For further information please contact:

Australia:

Competent Persons Statement:

The information in this report that relates to Exploration Results is based on information compiled by Mr David Catterall. Pr Sci Nat, who is a member of the South African Council for Natural Scientific Professions. Mr Catterall is employed as a consultant to Scotgold Resources Ltd. Mr Catterall has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Catterall consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Forward Looking Statements:

This release includes certain "forward looking statements." All statements, other than statements of historical fact, are forward looking statements that involve various risks and uncertainties.

There can be no assurances that such statements will prove accurate and actual results and future events could differ materially from those anticipated in such statements.

Appendix A

Rock chip results - River Vein Area

A table showing the results for this Appendix A can be found under ASX releases at www.scotgoldresources.com

Appendix B

Rock chip results - Beinn Udlaidh North East extension

A table showing the results for this Appendix B can be found under ASX releases at www.scotgoldresources.com