SGZ.L Regulatory News (SGZ)

21 September 2010

Scotgold Resources Limited ("Scotgold" or the "Company")

NON-RENOUNCEABLE RIGHTS ISSUE OF SHARES AND OPTIONS

On 16 September 2010 Scotgold Resources Limited (ASX: SGZ) (Company) announced a non-renounceable rights issue of shares on the basis of one Share for every four Shares held at the record date of 28 September 2010 at an issue price of $0.035 per Share together with one free attaching Option for every two shares subscribed for, exercisable at $0.08 and expiring on 30 April 2012. (Rights Issue).

The maximum number of shares to be issued under the Rights Issue is 29,326,690 to raise $1,026,434.

Options to be issued under the Rights Issue will be a new class of security of the Company. The full terms and conditions of the Options are set out in the Prospectus. Shares issued upon conversion of the Options will rank equally with existing shares in the Company.

The Company has applied for official quotation of the Shares and Options.

A prospectus was lodged with ASIC and a copy provided to ASX on 17 September 2010 in respect of the Rights Issue.

The Company announced on the 19 August 2010 that the Loch Lomond and Trossachs National Park's Board had voted to refuse the Company's application for the development of the Cononish gold and silver deposit at Tyndrum, Scotland. This vote and the recommendation by the Director of Planning that preceded it came as a surprise to your board and advisers given the close collaboration with the planning authority and apparent support in principle for the project that had been evidenced over the last three years.

The Company is however encouraged by the fact that the vote was close, twelve for refusal versus ten for approval, and that the local community continues to voice strong support for the development of the mine. The Company is therefore considering two separate alternatives to achieving development which it may pursue in parallel. The first is a formal appeal which would need to be lodged by the mid November 2010 and the second is a reapplication comprising a modified capacity and design for the tailings management facility which was the principal area of concern for those objecting to the development.

Both alternatives will require further work by the Company and its professional advisers and a positive resolution is unlikely to be achieved before the second quarter 2011.

In the meantime the Company intends to retain the positive momentum achieved with the regional exploration program, the latest results of which were announced on 16 August 2010.

It is worth emphasising that this program is being wholly undertaken outside the boundary of the Loch Lomond and Trossachs National Park.

The Board are therefore of the opinion that there is considerable upside potential to both pursuing the development of the Cononish resource and the regional exploration work.

The proposed timetable for the Rights Issue is as follows;

\* These dates are indicative only. The Directors reserve the right to vary the key dates at their sole discretion, subject to compliance with the Listing Rules. Applicants are urged to lodge their Application Form as soon as possible. Deferred Settlement trading will not be taking place.

The Offer is not underwritten.

As noted above, a prospectus and a personalised Entitlement and Acceptance Form will be sent to you on 5 October 2010.

A copy of the prospectus has been lodged with ASX and is available on ASX's website www.asx.com.au

A copy is also available on the Company's website www.scotgoldresources.com

For further information:

United Kingdom:

Australia: