Recommendation in Favour of Planning Application

Scotgold Resources Limited

("Scotgold" or the "Company")

RECOMMENDATION IN FAVOUR OF PLANNING APPLICATION AT CONONISH

The Directors of Scotgold Resources Limited are very pleased to announce that a recommendation in favour of the development of the Cononish gold project has been made in a report (the "Report") by the Executive Director of Planning and Rural Development of the Loch Lomond and Trossachs National Park (the "Executive Director") to the National Park Authority Board ( the "Parks Board").

The Parks Board will consider the application and make its decision at a special meeting on 24 / 25 October 2011 at the Crianlarich Village Hall.

Scotgold's Chief Executive Officer, Chris Sangster commented:

"We are delighted with the recommendation in the Report and are confident that, in considering its decision, the Parks Board will endorse the Executive Director's recommendation. This would represent the culmination of three years' detailed work towards planning a mining development which meets the exacting environmental standards required by the National Park Authority whilst providing a significant commercial opportunity in the interests of all stakeholders, in particular the local community which has been a keen supporter for a development that promises increased local employment and economic activity."

The Company and its agents have enjoyed a close working relationship with the National Park Authority, particularly over the past year following the negative planning decision in August 2010 and would like to acknowledge the significant assistance and contribution from the National Parks Authority and their advisors, whose constructive collaborative approach has served to guide a number of key aspects of the application".

The Company advises that the full content of the Report is available on the website of the Loch Lomond and Trossachs National Park: www.lochlomond-trossachs.org.

For further information:

United Kingdom:

Australia:

Note for Editors

Scotgold is an Australian company which listed on the ASX in January 2008 and subsequently on AIM in February 2010 (ASX and AIM: SGZ) Its operations are exclusively focused on the Dalradian sequence of mineralisation in the central highlands of Scotland which is highly prospective for both precious and base metal deposits. The Company owns a 100% interest in the Cononish project and a 3,200 sq km licence area over the Central Highlands.