SGZ.L Regulatory News (SGZ)

SCOTGOLD RESOURCES LIMITED

UPDATE RE PLACEMENT TO ZIO HOLDINGS LTD

Further to the announcement made on 12 September 2013 regarding the placing of 10 million fully paid ordinary Scotgold shares to Zio Holdings Ltd (the "Placing Shares"), the Company has issued and allotted the Placing Shares and made application for them to be admitted to trading on AIM ("Admission"). Admission is expected to take place on 18 September 2013.

Announcement made in relation to the Placing Shares' admission to the ASX was released today in Australia and is set out in the Appendix to this announcement below.

For further information please contact:

United Kingdom:

Australia:

APPENDIX

17 September 2013

The Company Announcements Office

Australian Securities Exchange Limited

4th Floor 20 Bridge Street

SYDNEY NSW 2000

APPENDIX 3B AND CLEANSING NOTICE - PLACEMENT TO ZIO HOLDINGS LTD

Scotgold Resources Limited (ASX:SGZ, AIM: SGZ) (Scotgold) is pleased to announce that it has completed a placement of 10 million fully paid ordinary Scotgold shares (Shares) to Zio Holdings Ltd (Company No. 077015) a company incorporated in Mauritius (Zio), at an issue price of AUD$0.02 each to raise AUD$200,000, as announced by Scotgold on 12 September 2013 (Placement).

Attached is an Appendix 3B in respect of the Shares issued to Zio under the Placement.

Settlement of the Placement is scheduled to occur on 16 September 2013 and the Shares are expected to be issued and begin trading on 16 September 2013. The Shares issued under the Placement will rank equally with existing Scotgold shares. Of the 10 million shares issued, 6,857,062 Shares were issued under the Company's capacity under ASX Listing Rule 7.1 and 3,142,938 Shares were issued under ASX Listing Rule 7.1A.

Information required under ASX Listing Rule 3.10.5A

Scotgold provides the information as required under ASX Listing Rule 3.10.5A as follows:

(a) The dilution to existing shareholders as a result of the issue:

(i) Under Listing Rule 7.1 is 3.15%; and

(ii) Under Listing Rule 7.1A is 1.47%,

being a total dilution to existing shareholders as a result of the Placement of 4.52%.

(b) Scotgold issued shares to Zio as it was considered to be a more efficient and expedient method for raising the funds to achieve its stated objectives. The Placement did not expose Scotgold to market volatility that may have been experienced over a more protracted process such as a pro-rata issue;

(c) No underwriting arrangements were in place for the Placement.

(d) A placement fee is payable of 5% of the funds raised under the Placement.

Notice Given Under Section 708A(5) Of The Corporations Act

This notice is given by Scotgold under section 708A(5)(e) of the Corporations Act 2001 (Cth) (Corporations Act) in relation to an issue of 10 million fully paid shares by Scotgold without disclosure to investors under Part 6D.2 of the Corporations Act.

As at the date of this notice, Scotgold has complied with:

(a) the provisions of Chapter 2M of the Corporations Act as they apply to the Company; and

(b) section 674 of the Corporations Act.

There is no excluded information as at the date of this notice, for the purposes of Section 708A (7) and (8) of the Corporations Act.

Yours faithfully

Peter Newcomb

Company Secretary

SCOTGOLD RESOURCES LIMITED

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