Completion of Investment in Ausgold Limited

Praetorian Resources Limited

("Praetorian Resources" or the "Company")

Completion of Investment in Ausgold Limited

and

Issue of Ordinary Shares to Ausgold Limited

Further to the Company's announcement on 6 August 2012, the Board of Directors of Praetorian Resources is pleased to announce that the conditional agreements entered into by the Company on 5 August 2012:-

(i) for the issue of 3,683,015 new ordinary shares in the Company (at a deemed issue price of 55 pence per share) to ASX listed, Ausgold Limited ("Ausgold") in exchange for 9,090,909 new ordinary shares in Ausgold with an agreed aggregate value of AUS$3,000,000 (the "Share Exchange Agreement"); and

(ii) for the AUS$1,500,000 subscription in cash for 4,545,455 additional new ordinary shares in Ausgold (the "Cash Subscription Agreement");

were completed today, following Ausgold shareholder approval of such Agreements at a general meeting held on 18 September 2012.

The aggregate 13,636,364 new ordinary shares in Ausgold were allotted and issued to the Company on 20 September 2012 and were admitted to listing on the ASX as at that date.

The 3,683,015 new ordinary shares in the Company were allotted and issued to Ausgold earlier today. Application has been made to the London Stock Exchange for all such new ordinary shares in the Company to be admitted to trading on AIM. It is expected that such admission will take place at 8.00 a.m. on 25 September 2012.

As at the date of this announcement, the aggregate 13,636,364 new ordinary shares in Ausgold issued to the Company represent 9.01% of Ausgold's enlarged issued share capital and the 3,683,015 new ordinary shares in the Company issued to Ausgold represent 7.32% of the Company's enlarged issued ordinary share capital.

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