SGZ.L Regulatory News (SGZ)

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

DECEMBER 2012 QUARTERLY REPORT

Cononish Gold and Silver Project

Infill Drilling Program Results

Scotgold commenced an infill drilling program at Cononish in January 2012. The drilling program was designed to increase the potential debt capacity of the project by working to convert inferred resources to indicated resources in that part of the resource that will be mined in the early years of the mine life.

A total of thirteen holes were drilled from January 2012 to September 2012 into the western portion of the Inferred Resource.

A further five holes have been completed in the eastern portion of the resource and results are awaited.

Results for the western section of the program are shown in Table 1 and Figure 1 below.

Table 1 - Infill drilling results (2012) - West Raise Area

Drill statistics are shown in Appendix A

Figure 1: An illustration showing the location of the drilling Results >3g/t for 2010 - 2012 drilling program can be found on Scotgold's website at www.scotgoldresources.com under ASX announcements.

Cononish Revised Mineral Resource Estimate

The results from various in-fill drilling programs carried out by Scotgold between 2009 and 2012 have been incorporated into a revised Resource Estimate.

The Resource Estimate, reported in accordance with The JORC 2004 Code, was compiled by Dr Simon Dominy of Snowden Mining Industry Consultants Pty Ltd (Snowden).

Table 2 and Table 3 below show the revised Mineral Resource estimate compiled by Snowden.

Table 2: Cononish Main Vein Gold Mineral Resources (reported at a 3.5 g/t Au cut-off).

Reported using the 2004 JORC Code (JORC, 2004). Tonnages and contained ounces rounded to the nearest 100 t or 100 oz. Grade rounded to the nearest 0.1 g/t Au. The Inferred Resource grade is reported with a grade range to indicate the possible upside due to the information effect.

Scotgold Note: Incorporating the grade range, the Inferred Mineral Resource is estimated to lie between 85,000 oz Au and 127,000 oz Au. It should be noted that any upside may not exist or it may only be present in a portion of the resource.

Table 3: Cononish Main Vein Silver Mineral Resources (reported at a 3.5 g/t Au cut-off).

Reported using the 2004 JORC Code (JORC, 2004). Tonnages and contained ounces rounded to the nearest 100 t or 100 oz.

Measured and Indicated Resources have increased to 82,600 ozs Au from 55,000ozs Au - an increase of 27,600 ozs Au (50%) - all in the Indicated category from the corresponding Inferred Resource blocks.

The total resource including Measured, Indicated and Inferred categories now stands at 169,200ozs Au and 631,300ozs Ag in 460,000t - a slight increase from 163,000 ozs Au and 596,000 ozs Ag in 437,000t estimated in 2009.

Figure 2: An illustration showing the updated mineral resource categorisation can be found on Scotgold's website at www.scotgoldresources.com under ASX announcements.

Cononish Project Development Study

The updated Mineral Resource Estimate will form the basis for the revised mining plan and updated Cononish Project Development Study to be completed under the auspices of Australian Mining Consultants UK Ltd (AMC). The Company will then be in a position to determine the debt capacity of the project.

The study commenced in December 2012 and is due for completion shortly.

EXPLORATION UPDATE - GRAMPIAN GOLD PROJECT

The Company continues to pursue exploration activities on its substantial land position of some 4,200km2 in the south west Grampians of Scotland.

Regional fieldwork, including ongoing stream sediment sampling continued over the Inverliever, Cononish / Glen Orchy, Glen Lyon and Ochil option areas.

Further field visits were conducted to the Knapdale and Ochil option areas.

AQ drilling was carried out to further test possible extensions to the Cononish vein at the far eastern end of the adit and results are awaited.

FINANCING

On 4 December 2012 the Company announced that it had raised approximately £475,000 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 (A$0.0475).

As part of the Fundraising, the subscribers and placees have been issued with one option for each New Share ("Options") comprising a total of 15,316,110 Options. The Options are unquoted and 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 before 7 May 2014.

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 to the loan facility is subject to final credit approval.

For further information please contact:

United Kingdom:

Australia:

Competent Person's 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.

The Information in this report that relates to Mineral Resources is based on resource estimates compiled by EurGeol Dr S C Dominy FAusIMM (CP), FGS (CGeol), FIMMM (CEng), FAIG (RPGeo), Executive Consultant with Snowden based in the Ballarat, Australia Office. Dr. Dominy has sufficient experience that is relevant to the style of deposit under consideration and to the activity which he is undertaking to qualify as Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore reserves. Dr Dominy consents to the inclusion in the report of the matters based on this 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 1 Drill statistics

Background

About Scotgold

Scotgold Resources Ltd is a mining exploration and development company listed on the Australian Securities Exchange (ASX) and the AIM market of the London Stock Exchange (AIM). The Company's principal asset is the Cononish gold and silver project situated near Tyndrum in the Scottish Grampians.

Planning approval for the development of an underground mine at Cononish has been granted and Australian Mining Consultants (UK) Ltd has completed a development study in April 2012 which demonstrated that the project is commercially attractive with a cash operating cost of around US$575/oz. The study is currently being updated.

The Company also holds Crown exploration licences over some 4,200 km2 covering the highly prospective Dalradian terrain across the south west Grampians.

Competent Person's Statement:

The Information in this report that relates to Mineral Resources is based on resource estimates compiled by EurGeol Dr S C Dominy FAusIMM (CP), FGS (CGeol), FIMMM (CEng), FAIG (RPGeo), Executive Consultant with Snowden based in the Ballarat, Australia Office. Dr. Dominy has sufficient experience that is relevant to the style of deposit under consideration and to the activity which he is undertaking to qualify as Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore reserves. Dr Dominy consents to the inclusion in the report of the matters based on this information in the form and context in which it appears.

Glossary of Technical Terms