SolGold Regulatory News (SOLG)

19 November 2015

SolGold plc

("SolGold" or the "Company")

Placing and Share Issue

The Board of SolGold Plc ("SolGold" or "Company"; AIM code: SOLG) is pleased to advise that the Company has entered into agreements to issue a total of 62,263,534 new ordinary shares of 1p each ("Ordinary Shares") for a total consideration of £933,953.

34,252,668 new Ordinary Shares (the "Placing Shares") have been issued for cash at 1.5 pence per share for gross proceeds of £513,790 with institutional and other investors (the "Placing").

The proceeds of the Placing will be utilised for the continued exploration of the Company's Cascabel project in Ecuador, including drilling and field work, and for working capital and general corporate purposes.

Certain Directors and employees of the Company would have liked to participate in the Placing but are prohibited from participating in the Placing, as SolGold is currently in a close period, as defined by the AIM Rules for Companies. It is the intention of certain Directors and employees to subscribe for new Ordinary Shares as soon as the Company is no longer in a close period.

Issue of shares in lieu of fees

The Company has today issued and allotted a total of 28,010,866 new Ordinary Shares at a deemed price of 1.5p per share as consideration for the settlement of approximately £420,000 of fees due to the Company's drilling contractor and professional advisers to SolGold ("Fee Shares").

Application will be made for the admission of the Placing Shares and Fee Shares to trading on AIM ("Admission"). Admission is expected to occur on or around 24 November 2015.

Holdings in Company

DGR Global Limited ("DGR Global") and Tenstar Trading Limited ("Tenstar") have both participated in the Placing. The interests of DGR Global and Tenstar currently and following the Placing and issue of Fee Shares is as follows:

Total Voting Rights

The Placing Shares and Fee Shares will rank pari passu with the existing Ordinary Shares . The rights attaching to the Placing Shares and Fee Shares, including as to voting, are the same as those of the existing Ordinary Shares. Following the issue of Placing Shares and Fee Shares, the total issued share capital of the Company consists of 822,716,604 Ordinary Shares each with voting rights. The Company does not hold any Ordinary Shares in treasury. Therefore, the total number of voting rights in the Company following Admission of the Placing Shares and Fee Shares will be 822,716,604 and this figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.

By order of the Board

Karl Schlobohm

Company Secretary

Contacts:

Mr Nicholas Mather Tel: +61 (0) 7 3303 0665

SolGold Plc (Executive Director) +61 (0) 417 880 448

nmather@solgold.com.au 

Mr Karl Schlobohm Tel: +61 (0) 7 3303 0661

SolGold Plc (Company Secretary)

kschlobohm@solgold.com.au

Mr Ewan Leggat Tel: +44 (0) 20 3470 0470

SP Angel Corporate Finance LLP (NOMAD and Broker)

Ewan.leggat@spangel.co.uk  

Mr Dominic Barretto Tel: +44 (0) 7768 537 739

Yellow Jersey PR Limited (Financial PR)

dominic@yellowjerseypr.com  

NOTES TO EDITORS

SolGold is a Brisbane, Australia based, AIM-listed (SOLG) copper gold exploration and development company with assets in Ecuador, the Solomon Islands and Australia. The Company's objective is to create substantial shareholder value by discovering and defining world-class copper-gold deposits. SolGold's Board and Management Team have high vested interests in the success of Company, holding approximately 14% of its issued share capital, as well as strong track records in the areas of exploration mine development, investment, finance and law. SolGold's experience is augmented by state of the art geophysical techniques and the guidance of Newmont trained porphyry expert Dr Steve Garwin.

Cascabel, the Company's world class flagship copper-gold porphyry project, is located in North West Ecuador on the under-explored northern section of the richly endowed Andean Copper Belt. SolGold owns 85% of Exploraciones Novomining S.A. ("ENSA") and approximately 11% of TSX-V-listed Cornerstone Capital Resources, which holds the remaining 15% of ENSA, the Ecuadorian registered company which holds 100% of the Cascabel concession.

To date the Company has completed geological mapping, soil sampling, 14km2 and 9km2 Induced Polarisation and Magnetotelluric "Orion" surveys at the Alpala and Aguinaga targets respectively. By October 2015, the Company had completed approximately 25km2 of soil sampling and 14km2 of electrical surveys, 21,000m of drilling and expended approximately US$30m. Diamond drilling continues with two drilling rigs completing approximately 8000 metres per rig each per annum.

Cascabel is characterised by multiple targets, world class intersections rich in high grades of copper and gold, logistic advantages in location, elevation, water supply, proximity to road, port and power services and a progressive legislative approach to resource development.

SolGold is planning a resource statement at Alpala the most advanced target at Cascabel by mid-2016, in addition to drill testing the other key targets at Aguinaga, Tandayama America and Chinambicito in the Cascabel concession. By the end of 2016 the company is planning further metallurgical testing, and completion of early stage mine and plant design and a scoping study for an economic development at Cascabel. Solgold is investigating both high tonnage / low grade open cut and high grade low tonnage underground developments as a block caving operation.

In Queensland, Australia the Company is evaluating the future exploration plans for the Mt Perry, Rannes and Normanby projects. Joint venture agreements are still being investigated with the strategy for the joint venture partner to commit funds and carry out exploration to earn an interest in the tenements.

SolGold is based in Brisbane, Queensland, Australia. The Company listed on London's AIM Market in 2006, under the AIM code 'SOLG' and currently has a total of 830,049,937 ordinary shares allotted, 4,820,000 options exercisable at 50p, 7,280,000 options exercisable at 28p and 9,280,000 options exercisable at 14p. On 2 October 2015, SolGold issued two 12 month Convertible Notes for A$1.25m and £500,000 each respectively, convertible at the greater of 1.75 p or 80% of volume weighted average price over the 5 days preceding the date of notification of conversion. At the minimum conversion price of 1.75p and an AUD/GBP exchange rate of 2.171 SolGold would issue a further 64,666,156 shares for an undiluted total of 825,119,227 shares.

CAUTIONARY NOTICE

The news release may contain certain statements and expressions of belief, expectation or opinion which are forward looking statements, and which relate, inter alia, to the Company's proposed strategy, plans and objectives or to the expectations or intentions of the Company's directors. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the control of the Company that could cause the actual performance or achievements of the Company to be materially different from such forward-looking statements. Accordingly, you should not rely on any forward-looking statements and save as required by the AIM Rules for Companies or by law, the Company does not accept any obligation to disseminate any updates or revisions to such forward-looking statements.