SGZ.L Regulatory News (SGZ)

Scotgold Resources Limited

Equity fundraising of approximately £475,000 and proposed £320,000 extension of loan facility

Scotgold Resources Limited ("Scotgold" or "the Company") (ASX:SGX) (AIM:SGZ) announces that it has conditionally raised approximately £475,000 (the "Fundraising") through a placing and direct subscriptions with the Company of, in aggregate, 15,316,110 new ordinary shares (the "New Shares") at a price of 3.1 pence per share. Application has been made for the New Shares to be admitted to trading on AIM and it is expected that admission of those New Shares will take place at 8.00 a.m. on 7 December 2012 ("Admission").

As part of the Fundraising, the subscribers and placees have been issued with one warrant for each New Share ("Warrants") comprising a total of 15,316,110 Warrants. The Warrants are exercisable into ordinary shares in the Company on a one-for-one basis at a price of 4.5p per ordinary share at any time within 18 months from the date of Admission. No application will be made for admission of the Warrants to trading on AIM or to be listed on the ASX.

Also as part of the Fundraising, the Company has mandated RMB Resources, a division of FirstRand Bank Limited (London Branch), to arrange for the existing £1.18 million corporate facility that was provided by RMB Australia Holdings Limited and was announced on 2 July 2012, to be increased by £320,000. The extension of the loan facility is subject to final credit approval.

Use of proceeds

The Company will use the equity and debt finance to develop its Cononish project and specifically to finish the detailed designs of the tailings plant and to finalise the development study currently being carried out by Australian Mining Consultants UK Ltd. Once the study is complete, the Company will be in a position to determine the optimum funding structure for construction of the Cononish mine.

John Bentley, Executive Chairman, said, "This fundraising is an important step towards the commercialisation of our project at Cononish. We now have funds in place in order to complete our preparatory work and look forward to completing the development study early next year."

Total voting rights

The New Shares will rank pari passu with the Company's existing ordinary shares. Following the issue of the New Shares there will be a total of 211,565,739 ordinary shares in issue with each share carrying the right to one vote. The above figure may be used by shareholders as the denominator for the calculations by which they to determine their percentage holding in the Company.

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