Mr. Dal Brynelsen reports

VANGOLD RESOURCES: CORPORATE UPDATE

Vangold Resources Ltd. has provided the following update on the activity at its three 95-per-cent-owned projects in Papua New Guinea (PNG): Allemata, Fergusson Island and Mt. Penck. Vangold has made application for extensions on all three concessions in PNG.

In addition, the company has reached terms for the settlement of its secured debt.

Allemata

Vangold has completed a 10-hole core drilling program on the Allemata project. The program tested several targets identified in 3-D induced polarization survey data collected on the property. Allemata is located in the historical Milne Bay gold district and is believed to host high-grade polymetallic skarn deposits. The property is approximately 50 kilometres by paved road from the provincial capital of Alotau, which hosts a deepwater port.

Fergusson Island

The Fergusson Island project is also located in the province of Milne Bay and is accessible by boat. Vangold's technical team has completed a comprehensive review of the historical data and conducted a site visit to gain a first-hand understanding of the geology and potential drill targets. Results from the work conducted on Fergusson Island suggest that the project has the potential to host a large, low-sulphidation epithermal gold system similar to the four-million-ounce Misima Island gold deposit.

Mt. Penck

The Mt. Penck project is located in West New Britain province and is accessible by road from the provincial capital of Kimbe, where deepwater port facilities are present. Work to date on the project suggests the potential to host a large hydrothermal gold system. Historical drilling has produced significant mineralized intersections, including 133 metres of 1.83 grams per tonne gold and 72 metres of 1.79 g/t Au. A core drilling rig was mobilized to the project in April to commence a four-hole program; due to heavy rains over the course of several weeks, the road accessing the property was compromised. As a result, Vangold determined that it could not conduct the program safely and elected to temporarily demobilize from the project area until monsoon season comes to an end.

Vangold has applied to the Mineral Resource Authority of PNG to extend its exploration licences for Allemata, Fergusson Island and Mt. Penck for an additional two years. Mineral exploration licences in PNG are extended for two-year periods and are awarded at the discretion of PNG authorities.

Loan settlement

The company has transferred its shares of Coppermoly Ltd. in settlement of secured debt pursuant to the July 9, 2012, loan agreement. The principal amount of the loan was $550,000, interest was payable at 20 per cent per year, and the loan was secured by a general security interest and a pledge of all of the company's shares of the company's subsidiary, Pacific Kanon Gold Corp. Transfer of Coppermoly shares was completed at 3.3 cents per share to reduce the loan amount by $460,659. The balance of $89,341 does not bear interest, is unsecured and will be reduced to the extent the creditors realize more than an average 3.3 cents per share through sale of these shares. If the shares are not sold by year-end, the debt will be reduced in a similar manner as if the shares were sold at the then market price.

We seek Safe Harbor.