TGL.L Regulatory News (TGL)

15 September 2011

Touchstone Gold

Exploration Update

Expansion of zone of mineralisation, confirmation of further target areas

Touchstone Gold Limited ("Touchstone Gold" or the "Company") (AIM: TGL) is pleased to announce an exploration update on its Rio Pescado Project located in Antioquia Department, Colombia.

Highlights

·; Existing zone of mineralization expanded through successful prospecting programme

·; Initial grades from trenching confirm potential for significant gold mineralization

·; Exploration programme continues to be expanded to additional target areas

·; Initial drilling results on previously identified zones expected in October

As reported in the Company's last update, and following the success of its most recent Auger soil sampling programme that significantly increased the Company's mineralized area, further prospecting of the highest priority zones has continued. In particular, assay's from the company's current trenching programme in the Tagual South area of the property have been received and have confirmed the potential for a significant bedrock source across the licence.

Selected Trenching results for Tagual South*:

*All samples collected were analysed utilizing ACME Analytical Labs of Vancouver BC., Canada and were subject to a 36 element ICP-MS analysis. Full details of the trenching results can be seen at Fig 1, 2011 Trench Results - Tagual South Area below:- ( http://www.rns-pdf.londonstockexchange.com/rns/2687O_-2011-9-14.pdf )

Having achieved encouraging results at the Tagual South target zone, the Company has now expanded its soil sampling and prospecting programme to investigate other favourable areas of interest. As previously reported, the Tagual target area provides early confirmation of the highly prospective nature of the Rio Pescado area.

Further assays from drilling activities are expected in early October.

Dave Wiley, CEO of Touchstone Gold commented: "We are making good progress and it is always pleasing to see our expectations continuing to be met. Each small step that we take confirms the potential for Rio Pescado to become an important gold deposit in an historically prolific, gold producing region. We anticipate a period of accelerated market disclosure as the results of our exploration programme become available."

Further Information

The Tagual South target measures approximately 1000 metres north-south and up to 400 metres east-west. A series of 6 trenches were put in along strike to test for the potential source of the Au soil geochemical anomaly. Trenches were put in on the edges of the Au anomaly due to access issues and also being restricted to using the area's pre-existing roads. As a result, only 600 metres of the 1000 meter Au soil anomaly has been tested to date. Trenches excavated were on average 3-4 metres deep, 1.5 metres wide and were 40-50 metres in length. All trenches were put in in an east-west manner to cut across the projected strike of the north-south anomaly.

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 since 1992. Mr. Nicholson is supervising the work programmes on the Rio Pescado Project.

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 39km2 in the highly prospective Segovia Gold Belt. With a philosophy of creating value by the systematic exploration and development of the Group's existing assets as well as the acquisition of suitable exploration and development mineral projects, the Group's long-term intention is to build a significant gold exploration and production company.