SGZ.L Regulatory News (SGZ)

22 July 2011

SCOTGOLD RESOURCES LIMITED

Non-Renounceable Rights Issue

Scotgold Resources Limited (ASX/AIM: SGZ) ("the Company") is pleased to announce a pro-rata non-renounceable rights issue of fully paid ordinary shares in the capital of the Company ("the Shares") on the basis of one (1) Share for every five (5) Shares held at the record date of 4 August 2011 ("the Rights Issue"). The Offer Document setting out the terms of the Rights Issue is available on the Company's website at www.scotgoldresources.com.au.

Shares under the Rights Issue will be offered at 5 cents per Share. The maximum number of Shares which may be issued under the Rights Issue is 32,260,882 to raise $1,613,000 (based on the current capital structure of the Company)

Shares issued under the Rights Issue will rank equally with existing Shares and the Company will apply for admission of the Rights Issue Share to both the ASX and AIM.

Option holders are not entitled to participate in the Rights Issue without first exercising their options to be registered as a Shareholder on the Record Date, in accordance with the terms and conditions of the Options.

The proposed timetable for the Rights Issue is as follows;

*Subject to the Australian Listing Rules, the Directors reserve the right to extend the Closing Date for the Offer at their discretion. Should this occur, the extension will have a consequential effect on the anticipated date of issue for the Securities

** Dates are indicative only

The Company intends to apply the funds raised from the Rights Issue as follows;

a) Meet costs on the Offer,

b) Progress on the Company's Projects, and

c) General Working Capital.

For further information please contact:

United Kingdom:

Australia: