SolGold Regulatory News (SOLG)

17 December, 2014

SolGold plc

("SolGold" or the "Company")

Placing to raise £1 million

The Board of SolGold Plc ("SolGold" or "Company"; AIM code: SOLG) is pleased to advise that the Company has entered into agreements for a placing of 33,591,828 new ordinary shares (the "Placing Shares") at 3 pence per share for gross proceeds of approximately £1 million with institutional and other investors (the "Placing"). The Placing was managed and completed by SP Angel Corporate Finance LLP and GMP Securities Europe LLP.

The proceeds of the Placing will be utilised for the continued exploration of the Company's Cascabel project in Ecuador including continuation of the Phase 2 drilling program at the Alpala Prospect and related exploration costs, costs associated with the maintenance of the Company's tenements in Australia and the Solomon Islands, and for working capital and general corporate purposes.

The Placing was supported by the following Company's Directors as detailed below:

Commenting on the fundraising, CEO Alan Martin states: "This fundraising means that we will have the flexibility to continue drilling within the Phase 2 drilling program at Cascabel, a truly exciting high grade copper-gold and surrounding multi-target porphyry project in Ecuador. In addition, the funds raised in the Placing will enable us to maintain our tenements in Australia and the Solomon Islands and provide us with ongoing working capital. I look forward to providing shareholders with on-going news flow over the next few months."

Application has been made for the admission of the Placing Shares to trading on AIM ("Admission"). Admission is expected to occur on or around 19 December 2014.

Total Voting Rights

The Placing Shares will rank pari passu with the existing Ordinary Shares of the Company. The rights attaching to the Placing Shares, including as to voting, are the same as those of the existing Ordinary Shares. Following the Placing, the total issued share capital of the Company consists of 685,745,030 Ordinary Shares of 1p 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 will be 685,745,030 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 Alan Martin

SolGold Plc (CEO and Managing Director) Tel: +61(0) 488 223 828

amartin@solgold.com.au

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/Ms Katy Birkin Tel: +44 (0) 20 3470 0470

SP Angel Corporate Finance LLP (NOMAD and Broker)

Ewan.leggat@spangel.co.uk  

Richard Greenfield/ Alexandra Carse Tel: +44 (0) 20 7647 2800

GMP Securities Europe LLP (Joint Broker)

richard.greenfield@gmpeurope.com

Mr Dominic Barretto / Ms Anna Legge Tel: +44 (0) 7747 788 221

Yellow Jersey PR Limited (Financial PR)

dominic@yellowjerseypr.com  

NOTES TO EDITORS

SolGold's exploration projects are located in northern Ecuador, Australia, and the Solomon Islands. In Ecuador, they consist of a joint venture with Cornerstone Capital Resources Inc. on the Cascabel copper-gold project. In Australia, SolGold holds 100% of the Rannes, Mt Perry, Cracow West and Normanby Projects, all in southeast Queensland. In the Solomon Islands they comprise the Fauro Project (located on Fauro Island), and the Lower Koloula, Malukuna and Kuma licenses, which are located on Guadalcanal.

The Cascabel copper-gold project is located approximately 180 km by sealed road north of Ecuador's capital, Quito, 20 km south of the Colombian border, and 75 km inland from the coastal city of San Lorenzo. At the Rannes project SolGold has announced indicated and inferred resources of 18.7 million tonnes at 0.9 g/t gold equivalent (gold + silver) for 550,146 ounces of gold equivalent (296,657 ounces of gold and 10,137,736 ounces of silver; see announcement dated 23 May 2012 for details of the resource statement and gold equivalent ratios). The Rannes project is currently under review.

In the Solomon Islands, a soil geochemical survey and 3D modelling of magnetic data has been approved at Kuma.

SolGold's objective is to create substantial shareholder value by discovering and defining world-class copper-gold deposits.

SolGold's Board includes accomplished professionals with strong track records in the areas of exploration, mine development, investment, finance and law. Board and Management have significantly vested interests in the Company, holding approximately 14% of its issued share capital.

SolGold is based in Brisbane, Queensland, Australia. The Company listed on London's AIM Market in 2006, under the AIM code 'SOLG' and following the Placing will have a total of 685,745,030 fully paid ordinary shares, 12,820,000 options exercisable at 50p, 12,730,000 options exercisable at 28p and 9,730,000 options exercisable at 14p.

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.