TGL.L Regulatory News (TGL)

5 March 2012

Touchstone Gold

Corporate Update

Touchstone Gold Acquires Interest in Santa Rosa Project in Bolivar, Colombia

London, 5 March 2012 - Touchstone Gold Limited ("Touchstone Gold" or "the Company") (AIM: TGL) is pleased to announce that it has today entered into an option agreement with a private company through its wholly owned subsidiary, Touchstone Colombia, to acquire a 90% interest in four mining concessions, over a total area of 57 square kilometres, that together comprise the important Santa Rosa Project located in the well known gold mining district in the south of the Bolivar Department, Colombia (the "Agreement").

Highlights

·; Option to earn 90% interest in Santa Rosa Project in South Bolivar, Colombia

·; Highly prospective area hosts multiple gold bearing vein type systems in a gold province that is home to a number of international gold mining and exploration companies

·; The 4 concessions cover a total land area of 57 km sq

·; Provides in-country diversification of gold exploration assets

David Wiley, CEO of Touchstone Gold, commented: "We are pleased to announce the Company's first land acquisition since IPO. We are taking the same methodical approach to exploring this exciting area that has yielded the positive results we have achieved thus far at our Rio Pescado Project. The Santa Rosa Project has historically hosted attractive grades, multiple vein sets, and interesting geology. We are currently in the process of systematically verifying historical assay results, a number of which show significant gold mineralisation as expressed both by grade and by proximity to surface. The Company's goal is to increase shareholder value by focusing on the development of our current Rio Pescado project, whilst also adding to our asset base when we see an area that has great promise at a good value. In this context, we very much look forward to mobilising our technical team into Santa Rosa and thereby finalising our exploration plans in that project area."

Summary of Material Contract Terms

The material terms of the Agreement are summarised below:

·; Initial payment of US$59,000 to the current concession holders, a non-related private company, upon signing the option agreement;

·; An additional payment of US$50,000 upon the mining concessions being registered to Touchstone Colombia on the National Mining Registry of Colombia;

·; Four annual payments of US$327,750 that will commence one year after the mining concessions have been registered;

·; US$1,000,000 in exploration expenditures on the property before earning the 90% interest;

·; The Company has secured a right of first refusal to acquire the remaining 10% of the Santa Rosa Project.

Further Information

The Santa Rosa Project area (see Map 1) is underlain by a mix of granodiorites, synogranodiorities, quartz monzonites and tonalites. These rocks host many of the plutonic hosted mesothermal gold deposits in northeastern Colombia, including the Segovia-Remedios Gold belt which collectively has produced in excess of 24 million ounces of gold. The Santa Rosa Project area is host to a number of gold bearing vein type systems, which vary in width and strike length. At present, there are numerous artisanal gold operations in the area, consisting of both underground mining operations that follow veins and shears, and alluvial gold operations, reflecting the gold endowment of the project. As noted above, the Company is focused on rapidly advancing the exploration programme and drill testing the known gold workings over the coming months.

Mr. John Nicholson, P.Geo has reviewed and approved the technical information contained within this announcement in his capacity as a qualified person, as required under the AIM rules. Mr. Nicholson is chief geologist of the Company and is a Fellow of the Royal Geographical Society, has a BSc. from the University of British Columbia, and has been an accredited member of the Association of Professional Engineers and Geoscientists of British Columbia since 1992. Mr. Nicholson is supervising the work programmes on the Rio Pescado Project and will also develop and supervise the programme on the Santa Rosa Project.

For Map One please click on the link below:

http://www.rns-pdf.londonstockexchange.com/rns/6441Y_-2012-3-4.pdf 

For further information please contact:

Touchstone Gold

David Wiley Tel. +1 647 260 1247

Chief Executive Officer

Collins Stewart Europe Limited (Nominated Advisor and Joint Corporate Broker)

John Prior Tel. +44 20 7523 8350

Seb Jones Tel. +44 20 7523 8350

Northland Capital Partners Limited (Joint Corporate Broker)

Gavin Burnell Tel. +44 20 7796 8800

Edward Hutton Tel. +44 20 7796 8800

John-Henry Wicks Tel. +44 20 7796 8800

Merlin

Ian Middleton Tel. +44 20 7726 8400

Anca Spiridon Tel. +44 20 7726 8400

About Touchstone Gold

Touchstone is a gold exploration company and the 100% owner of the Rio Pescado Project in Colombia, comprising four concessions over a total area of 39 square kilometres in the highly prospective Segovia Gold Belt. With a philosophy of creating value by the systematic exploration and development of the Company's existing assets as well as the acquisition of suitable exploration and development mineral projects, the Company's long-term intention is to build a significant gold exploration and production company.