Issue of shares and changes in directors' holdings

SCOTGOLD RESOURCES LIMITED ("SCOTGOLD" OR THE "COMPANY")

Issue of shares and changes in directors' holdings

Scotgold (ASX:SGZ, AIM: SGZ) announces that following the completion of the Company's rights issue it has now issued and allotted 28,181,626 new shares, which were issued pursuant to the terms of the rights issue for a cash consideration of 5 Australian dollar cents per share (AUS$0.05 per share) (the "New Shares").

Application has been made for the New Shares to be admitted to the ASX and AIM markets and it is anticipated that admission to AIM will occur on Wednesday, 7 September 2011.

Following their participation in the rights issue the following changes have occurred to Mr John Bentley, the Company's Chairman, and Mr Christopher Sangster, the Company's CEO's, holdings in the ordinary shares of the Company.

1Held directly and through Smith & Williamson Nominees Limited

2Held directly and through Giltspur Nominees Limited

Filings of the above changes to directors' holdings have today been made to the Australian Stock Exchange using ASX form, Appendix 3Y.

Scotgold is also aware that Kenglo One Limited, a Significant Shareholder as defined under the AIM Rules, participated in the rights issue. The Company understands that following the rights issue, Kenglo One Limited's revised aggregate interest in the Company's issued share capital is 17,400,000 ordinary shares representing 9.2% of the issued share capital.

A revised schedule detailing the holdings of the Company's largest twenty shareholders is available on Scotgold's website.

The total number of shares in issue following the Rights Issue is 189,510,656.

For further information please contact:

United Kingdom:

Australia: