Mr. Allan Serwa reports

ABZU GOLD INCREASES SIZE OF NON-BROKERED PRIVATE PLACEMENT TO $3,600,000

Abzu Gold Ltd., further to the company's news release dated July 26, 2011, plans to increase the size of its non-brokered private placement to $3.6-million. All other terms of the private placement remain as previously announced.

The private placement is subject to TSX Venture Exchange approval and the securities issued pursuant to the private placement will be subject to a four-month hold period.

We seek Safe Harbor.