SGZ.L Regulatory News (SGZ)

Scotgold Resources Limited

("Scotgold" or "the Company")

Pursuant to AIM Rule 20 Scotgold Resources Limited (ASX/AIM: SGZ) hereby announces that it has today posted a letter to option holders regarding the expiry of certain options in the Company (the "Letter").

Copies of the Letter and the Option Expiry Notice are available in the AIM Rule 26 section of the Company's website.

The full content of the letter is set out below:

Dear Option Holder,

NOTICE TO OPTION HOLDERS - SCOTGOLD RESOURCES LIMITED (ASX: SGZ)

We are writing to you in relation to your option holding in Scotgold Resources Limited (the Company). These options entitle you to acquire ordinary fully paid shares in the Company. You are formally advised that these options will expire at 5.00pm Western Standard Time ("WST") on 30 April 2012.

Options may be exercised wholly or in part by completing the Option Exercise Form and payment of A$0.08 for each option exercised, by no later than 30 April 2012. If the Option Exercise Form and payment is not received by 5.00pm WST on 30 April 2012, the option will lapse.

Pursuant to Listing Rule 6.24 and Appendix 6A of the Australian Securities Exchange Limited (ASX), the Company is required to advise option holders of the information contained in this notice.

The market sale price of ordinary fully paid shares in Scotgold Resources Limited at the close of trade on 22 March 2012, being the last trading day prior to the date of this notice, and the highest and lowest prices during the three (3) months preceding the date of this notice were:

(1) The highest market price on ASX was on 12 March 2012 and on AIM was on 29 February 2012 and 9 March 2012.

(2) The lowest market price on ASX was on 23 January 2012 and on AIM was on 11 January 2012, 18 January 2012 and 23 January 2012.

The Company wishes to advise that the timetable and important dates for the expiry of options is as follows:

Notice sent to option holders 23 March 2012

Last day of quotation of options 20 April 2012

Expiry date 30 April 2012

Despatch date 21 May 2012

An Option Expiry Notice and Option Exercise Form is enclosed for your convenience.

Please see alternative payment instructions if you wish to pay by EFT or in Pounds Sterling.

INSTRUCTIONS FOR EXERCISING OPTIONS

If you wish to exercise all or part of your options then you may either:

1) complete the Option Exercise Form accompanying this notice and forward it together with your cheque, to be received by 5.00 pm WST on 30 April 2012 to:

Computershare Investor Services Pty Limited

GPO Box D182

PERTH WA 6840

Payments must be in Australian dollars only, and cheques should be made payable to Scotgold Resources Limited and crossed "Not Negotiable" and drawn on an Australian bank.

2) complete the Option Exercise Form on the Company website and follow payment instructions provided with the online form

www.scotgoldresources.com Investor Centre > Exercise Options

The online form will allow you to choose between Australian Dollars and Pounds Sterling and the printed form includes payment instructions for cheque and bank transfer in the chosen currency.

Please ensure your SRN is quoted on any bank transfer.

Special Note to UK option holders

The shares issued as a result of exercising your options will be listed on the ASX.

If you wish to transfer these shares to AIM once you have received a holding statement advising of your holding and SRN, please complete the transfer form on the Company website:

www.scotgoldresources.com Investor Centre > Transfer Shares to AIM

END OF LETTER

For further information please contact:

United Kingdom:

Australia: