SGZ.L Regulatory News (SGZ)

SCOTGOLD RESOURCES LIMITED ("SCOTGOLD RESOURCES" or THE "COMPANY")

PLACEMENT OF RIGHTS ISSUE SHORTFALL

Scotgold Resources (ASX:SGZ) announced on 6 January 2014 that shareholders had taken up 90% of the shares on offer under the recent Rights Issue, raising $742,599.

In accordance with the Offer Document, the Directors reserved the right to deal with the shortfall shares at their discretion at the same issue price as offered to shareholders under the Rights Issue. The Company is pleased to announce it has placed the total balance of the shortfall to investors being 17,654,502 fully paid ordinary shares (the "Shortfall Shares") at 0.5 cents per share to raise a further AUS$88,273 before expenses.

The Shortfall Shares have been allotted and will be issued into the issuer sponsored sub register on 23 January 2014. The Directors are pleased to have successfully completed the Rights Issue and with the level of shareholder support.

Application will be made for the Shortfall Shares to be admitted to AIM and it is expected that this will occur on or around 27 January 2014.

Following the issue of the Shortfall Shares the Company will have a total of 387,740,043 shares on issue. This figure should be used by shareholders as the denominator for the calculation by which they will determine if they are required to notify their significant holding in, or a change to their significant holding in the Company.

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