Mr. William Simmons reports

ATLANTA GOLD RECEIVES CLEAN WATER ACT JUDGMENT

The U.S. District Court for the State of Idaho issued a memorandum decision on July 19, 2012, in a case in which Atlanta Gold Inc.'s wholly owned subsidiary, Atlanta Gold Corp., is a party, pertaining to AGC's non-compliance with the U.S. Federal Water Pollution Control Act. The court imposed a penalty in the amount of $2-million to be paid on or before Oct. 31, 2012. In addition, the decision orders AGC to implement measures to come into compliance with the Npdes permit by that same date.

The company's chief executive officer, William Ernest Simmons, commented: "The court has rendered a decision, and AGC intends to honour its ruling, comply with its direction and pay the imposed fine. We appreciate that the court recognized that the existing pilot water treatment facility removes a significant amount of toxic materials from the adit waters. With the penalty-phase defined, the company will commence improvements to the Pwtf to meet compliance with the Clean Water Act, to initiate final closure and remediation of the adit, and to develop the Atlanta project, subject to approval of the U.S. Forest Service," commented Mr. Simmons.

The court's earlier decision, reported in the company's news release dated Jan. 10, 2012, held that AGC was not in compliance with the Clean Water Act with respect to its operation of the Pwtf at the historical 900-level adit, which is located on property owned by the Bureau of Land Management and administered by the U.S. Forest Service near Atlanta, Idaho. AGC did not construct the adit or cause the discharge that flows from the adit. The Pwtf has treated discharge from the adit since 2006 to remove 85 per cent of the naturally occurring arsenic before it flows into Montezuma Creek.

AGC has been working closely with the regulatory agencies over the past four years to evaluate alternative methods to decrease effluents and select the optimum method for water treatment. AGC has submitted a staged supplemental plan of operations and a closure plan for the adit intended to resolve all issues relating to the adit discharge. Subject to approval by the U.S. Forest Service, AGC's 2012 Spoo and remedial action plan are expected to be initiated in July, 2012. Given the mandates of the court's decision, that process will be expedited and completed at the earliest time possible.

We seek Safe Harbor.