TGL.L Regulatory News (TGL)

Interim Update

Toronto, Ontario, September 20, 2013 ―Touchstone Gold Limited (TSX:TCH; AIM:TGL) ("Touchstone Gold" or the "Company") today provides an interim update for shareholders.

The Company has previously reported that as of June 30th 2013 it had cash and cash equivalents of US$823,940 and in light of weak financing market conditions in the junior mining exploration sector, the Directors would take steps to implement prudent cash preservation measures.

In the period since that announcement, a number of measures have been taken, which have led to a significant reduction of operating and exploration expenditure. The Company currently is not involved in any exploration expenditure, and does not have any exploration programmes planned in the short term. Additionally, following the Board changes announced 22 July 2013, none of the current directors receive any cash remuneration, and other corporate overhead has been reduced significantly.

The Company also wishes to announce that it is engaged in a number of strategic conversations with other mining companies with the intention of reviewing possible transactions that might be accretive in value for all shareholders. During the past 18 months, a large number of projects in the precious metals mining and exploration area have suffered from a lack of financing in light of the current lack of activity in the resources capital markets. Touchstone Gold believes it may be able to work with companies who possess good projects and who otherwise might not have access to the capital markets in line with their original plans. Whilst there can be no guarantee that a transaction will be announced, the Directors are hopeful that one of the initiatives currently being explored may lead to a conclusion by the end of this calendar year and that two such initiatives can be accurately be described as being in "advanced discussion" stage.

The Company's current cash and equivalent resources are approximately U$250,000, with various important lease payments having been made to secure properties and also extinguish historic liabilities, and monthly costs have been reduced to approximately US$30,000 per month. The Company can confirm that should no strategic transaction be concluded non-executive Directors Bob Buchan and Ilyas Khan have indicated to the Board that they would be prepared to provide sufficient funding to enable the Company to meet its anticipated working capital obligations until new potential sources of funding are identified.

Further updates on developments will be announced in due course.

About Touchstone Gold Limited

Touchstone Gold Limited (TSX:TCH; AIM:TGL)is a gold exploration company with a highly-prospective gold project in the Segovia District of Colombia. The Company's Segovia Gold Project hosts a high-grade near-surface gold deposit, Rio Pescado Deposit, which spans along 15km+ of potential strike length. Only 5% of the Company's property has been drilled to date and several identified target zones, which hosts high-grade gold geochemical anomalies is due to be drilled in the near-term.

For additional technical information on the Rio Pescado Deposit, please refer to the Company's technical report (the "Technical Report") entitled "Technical Report on The Rio Pescado Gold Property, Republic of Colombia" dated June 30, 2012, prepared by Peter A. Christopher PhD., P.Eng. of PAC Geological Consulting available on SEDAR at www.sedar.com and on the Company website at www.touchstonegold.com.

For Further Information, Please Contact

Brian Morales

Touchstone Gold Limited

+1 647.925.2713

info@touchstonegold.com

www.touchstonegold.com

Cautionary Note Regarding Forward-Looking Information

Certain information set forth in this press release contains "forward-looking information" under applicable securities laws. Except for statements of historical fact, certain information contained herein constitutes forward-looking information which includes management's assessment of Touchstone's future plans and operations and are based on Touchstone's current internal expectations, estimates, projections, assumptions and beliefs, which may prove to be incorrect. Some of the forward-looking information may be identified by words such as "expects" "anticipates", "believes", "projects", "plans", and similar expressions. These statements are not guarantees of future performance and undue reliance should not be placed on them. Such forward-looking information may necessarily involve known and unknown risks and uncertainties, which may cause Touchstone's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking information. These risks and uncertainties include, but are not limited to: liabilities inherent in mine development and production; geological, mining and processing technical problems; Touchstone's inability to obtain required mine licenses, mine permits and regulatory approvals required in connection with mining and mineral processing operations; competition for, among other things, capital, acquisitions of resources and reserves, undeveloped lands and skilled personnel; incorrect assessments of the value of acquisitions; changes in commodity prices and exchange rates; currency and interest rate fluctuations; various events which could disrupt exploration and development, including labour stoppages and severe weather conditions; and management's ability to anticipate and manage the foregoing factors and risks. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Touchstone undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking information.