TGL.L Regulatory News (TGL)

21 November 2011

Touchstone Gold

Exploration Update

New deep Gold Zone identified to reveal a stacked mineralized structure

Continuity between Filodehambre and Pepas zones

London, 21 November 2011 - Touchstone Gold Limited ("Touchstone Gold" or "the Company") (AIM: TGL) is pleased to announce a further set of drill assay results from the stage 3 drilling programme on its Rio Pescado Project, which provide encouraging intersections, including three holes recording outstanding high-grade assays.

Highlights

·; New gold zone at depth beneath the previously known mineralisation

- 17.58g/t gold grades over 3.4m

- Stacked mineralised structure revealed, with at least two gold veins

·; Mineralisation encountered in Gap Area confirming that Pepas and Filodehambre are connected

·; Filodehambre: average gold grade of 7.28 g/t gold, including 13.24 g/t over 2.20m

The Company reports assays from 17 holes drilled at the Pepas, Filodehambre, and Gap Area in between the two previously known gold mineralized zones. Since September 1st, 2,600 metres of an approximate 5,000 metre drill programme have been drilled by Energold Drilling. These holes demonstrate that Pepas and Filodehambre, previously described as separate zones, are in fact connected along strike that runs continuously for 1,200 metres.

Encouraging results were obtained from LPD-1131, as well as LPD-1140 and LPD-1141.

Importantly, and possibly the most significant, a new gold zone is present at depth, approximately 60 metres, beneath the previously known shallow gold mineralization. A summary of the significant drill results is given below.

These results confirm two significant expansions of the mineralization. Firstly the fact that known strike is considerably longer than previously shown, and that the system in the area known as the Main Zone is stacked with at least two separate Quartz vein systems. The true thickness has yet to be determined.

Table 1. Selected Drilling Results*

* All samples collected were analysed utilizing ACME Analytical Labs of Vancouver BC., Canada and were subject to a 36 element ICP-MS analysis. Over limit samples were subject to gravimetric analysis.

For full drilling results from the 17 drill holes, please see Table 2 and Figure 1 (Drill Hole Location Map) below.

David Wiley, CEO of Touchstone Gold commented: "Our stage 3 2011 drilling programme is yielding exciting results. In addition to identifying a new gold zone at depth with encouraging high grades, these results allow us to begin expanding and connecting the areas of previously known mineralization along strike. Of particular significance is the intersection of a new zone gold mineralization vertically below the zones at Pepas and Filodehambre. We look forward to continuing to explore this area at depth as well as commencing drilling at Tagual soon with the second drill rig."

Further Information

Touchstone Gold has previously announced that significant new zones of mineralization have been discovered to the east of the Las Pepas and Filodehambre region, in the Tagual area. Initial trenching and other exploration activities continue to confirm that the Rio Pescado project is attractive in terms of both grade and size of deposit. The Company anticipates releasing the second set of trenching assay results from the summer surface exploration programme soon.

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.

Table 2. Complete Drilling Results

Figure 1. Rio Pescado Project - Drill Hole Location Map

http://www.rns-pdf.londonstockexchange.com/rns/4163S_-2011-11-20.pdf 

For further information please contact:

Touchstone Gold

David Wiley Tel. +1 647 260 1247

Chief Executive Officer

Collins Stewart Europe Limited

John Prior Tel. +44 20 7523 8350

Seb Jones Tel. +44 20 7523 8350

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.