TGL.L Regulatory News (TGL)

Touchstone Gold Limited

("Touchstone" "TGL" or the "Company")

Issue of Equity

London, 20 February 2015 - Touchstone (AIM:TGL), the AIM listed investment company today announces that it has placed 125,000,000 common shares of no par value in the Company (the "Placing Shares") at 0.40 pence per share with a number of existing and new investors to raise £500,000 (the "Placing"). The Placing has been undertaken by Peterhouse Corporate Finance.

The proceeds of the Placing will fund the continued growth and development of portfolio company GOS Systems ("GOS") and will assist GOS with accelerated product development and with expanding international sales channels that are showing positive potential.

Franz Forrester, Chief Operating Officer of Touchstone, commented: "We are pleased to announce a successful Placing in order to assist with the continued development of GOS. At the time of the original acquisition of GOS by TGL from receivership, there was some understandable concern regarding whether clients and products could be retained whilst GOS was being run by an administrator through the receivership process.

"As we now know, GOS has emerged from administration much better than we could have hoped for and as a result, we are pleased to confirm that not only have existing customers remained with GOS Systems, but that GOS has added new customers both in the United Kingdom and also overseas. More details on the progress of GOS will be provided to investors in our management updates, but the directors are confident of GOS' ability to deliver its pipeline through existing contracts. There is an established customer base, for whom GOS' products provide essential services. New customers in international markets are an added sign of the strength of the GOS product range that is focused on governments and public sector agencies.

I would like to thank existing investors for their continued support and welcome new investors to the Company".

Mr Ilyas Khan is a substantial shareholder in Touchstone, being interested in approximately 11.4% of the voting rights of the Company and as such is considered to be a related party of the Company as defined by the AIM Rules. Mr Khan is the beneficial owner of Stanhill Special Situations Fund Limited ("Stanhill"), who are participating in the Placing. Therefore this participation in the Placing constitutes a related party transaction pursuant to AIM Rule 13. The independent directors of the Company (being [Richard Almeida, Charles Goodfellow and Professor Arthur Gibson]), having consulted with the Company's nominated adviser, finnCap Ltd, consider that Mr Khan's participation in the Placing is fair and reasonable insofar as the Company's shareholders are concerned.

The Placing Shares will rank pari passu with the existing common shares of no par value in the Company. Application will be made for admission of the Placing Shares to trading on AIM which is expected to occur on or around 2 March 2015.

Following Admission, the Company will have 605,982,800 common shares of no par value in issue ("Issued Share Capital"). This figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company in accordance with the FCA's Disclosure and Transparency Rules.

About GOS Systems

· GOS Systems is a UK security group providing a range of leading-edge tactical and strategic intelligence gathering and secure communication solutions for law enforcement, homeland security and government agencies around the world.

· GOS' intelligence gathering solutions provide real-time monitoring of cellular, voice, SMS, and IMSI and IMEI metadata.

· GOS' safe communications solution offers secure mobile telephony services to ensure privacy and security for customers.

For more information, visit www.touchstonegold.com or www.gos-systems.com

For further information please contact: