TGL.L Regulatory News (TGL)

29 March 2012

Touchstone Gold

Exploration Update

Touchstone Gold intercepts 8.70 g/t gold over 16.80m and 4.29 g/t gold over 17.90m at Rio Pescado

London, 29 March 2012 - Touchstone Gold Limited (AIM:TGL) ("Touchstone Gold" or the "Company") is very pleased to announce a further suite of highly encouraging assay results from five drill-holes during the on-going exploration drilling programme from the 1141 Zone at the Rio Pescado Project in Colombia, which provides additional evidence of the discovery of a richly mineralised ore body.

Highlights

·; Significant shallow, high-grade drilling results continue to be recorded in the 1141 Zone

·; Selected drilling results include:

- 8.70 g/t gold over 16.80 metres, including 17.56 g/t gold over 8.15 metres, and 27.60 g/t gold over 4.50 metres from hole LPD - 1286

- 4.29 g/t gold over 17.90 metres, including 22.18 g/t gold over 2.60 metres from hole LPD - 1281

·; Drilling has confirmed continuity of mineralisation and indicates further potential along strike to the south

Further to the previous announcements concerning the discovery of the new mineralised 1141 Zone at Rio Pescado, the Company has now received assay results from additional holes drilled in the 1141 Zone. The latest batch of assay results, alongside earlier intercepts that included 8.75 g/t gold over 28.25m, 9.13 g/t gold over 15.00m, and 5.84 g/t gold over 21.75m, continue to confirm the presence of significant, high-grade and near or at surface intersections of consistent gold mineralisation. See Table 1 below.

David Wiley, CEO of Touchstone Gold, commented: "The latest assay results strengthen our confidence in the quality and continuity of the 1141 Zone ore body. Holes 1281 and 1286 were drilled to test the north-western extent of the 1141 Zone, and they exceeded our expectations by returning such high-grade gold values. Additionally, we have been able to analyse the structure of the 1141 Zone and further delineate the controls on mineralisation. As a result we believe the 1141 Zone remains open along strike at a greater distance than expected towards the south."

David Wiley added: "As we stated in our last announcement on 12 March 2012, given the positive results that have been gained from drilling in the 1141 Zone, we have now begun to design our stage-4 drilling programme and proceed with further exploration permitting. A small number of assays remain outstanding from the stage-3 drilling programme, and can be expected in the coming weeks."

Table 1. Drilling Results*:

For Figure 1 - Rio Pescado Project - Drill Hole Location Map, please click on the link below:

http://www.rns-pdf.londonstockexchange.com/rns/3133A_-2012-3-28.pdf

Further Information

1141 Zone, which is mesothermal in nature, is located approximately 200 metres to the south and adjacent to the Filodehambre zone, and shows similar characteristics to both the Filodehambre and Pepas Zones on the Company's Rio Pescado property.

1141 Zone has been tested for approximately 250 metres along strike in a north-south manner. It is truncated to the north by an east-west orientated fault and remains open to the south. The width of the zone is approximately 75 metres. The true thickness of the vein system ranges from 1 to 25 metres, and has been tested to a maximum depth of 75 metres.

The Company now plans to test the southerly strike extension of the vein system through its stage-4 drilling programme. New permitting for these areas is being processed. Once applications have been submitted and approval has been received the Company will continue an aggressive program of definition and reconnaissance drilling in the area.

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.

For further information please contact:

About Touchstone Gold

Touchstone Gold 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. It owns further options on the Santa Rosa Project, in the South Bolivar area of Colombia, comprising four concessions over a total area of 57 square kilometres. 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.