TGL.L Regulatory News (TGL)

6 June 2012

Touchstone Gold

Exploration Update

LiDAR Survey Identifies New Targets in Areas of Known Gold Mineralization

London, 6 June 2012 - Touchstone Gold Limited (AIM: TGL) ("Touchstone Gold" or "the Company") is pleased to provide an update on exploration activity related to its Rio Pescado Project in Colombia.

Highlights:

·; Drilling continues to demonstrate evidence of high-grade gold mineralization

·; LiDAR survey has reinforced confidence in quality and continuity of Rio Pescado gold mineralized zones

·; New targets in areas of known gold mineralization have been identified

As previously reported, assay results from a small number of drill holes were still outstanding from the Company's highly successful stage 3 drilling programme. These results have now been received and are noted in Table 1 below. Highlights include further evidence of extensive mineralization in the 1141 Zone. The results also provide further feedback on the structure of the deposit. Six holes in total were outstanding, all of which were coincidental to and supportive of further delineation of the Zone's strike.

LiDAR survey

Between 3 April and 6 April 2012, Eagle Mapping Ltd undertook a Light Detection and Ranging (LiDAR) survey over the Rio Pescado Project for Touchstone Gold. The survey was designed to delineate undiscovered structures bearing similar characteristics to those associated with areas of known gold mineralization. The total area covered by the survey was 21 square kilometres.

The results from the survey are extremely positive and indicate that Rio Pescado contains a series of North Westerly and North Easterly linear structures which have been bisected by a series of North-South and East-West linear structures. The intersection points of these structures coincide with areas of known gold mineralization. Several new target areas, in addition to the known areas of gold mineralization, have now been identified. Of these new target areas, a select few have been ground proofed, resulting in several old open cuts and adits being discovered from previous artisanal mining activity.

David Wiley, CEO of Touchstone Gold, commented:"We are very excited by the LiDAR results. We have long believed that the areas drilled to date are only a small part of a system of high grade and close to surface mineralization in this part of Rio Pescado. The LiDAR results will continue to be analysed, but the early indications provide us with greater knowledge in planning the next stage of drilling. I am pleased that our shareholders can draw increased confidence from this development."

David Wiley added: "The small number of drilling assay results that we are also releasing are not significant, and represent only the balance of the extensive stage 3 drilling programme that had previously been announced. However, I am pleased to be able to report that the information provided continues to be positive, and in fact some of the holes contained mineralization that was not expected."

Table 1. Remaining Stage 3 Drilling Results

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 area.

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 mining 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 proposed mining concessions and one mining concession over a total area of 68 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.