Mr. Ernest Simmons reports

ATLANTA GOLD INC. COMPLETES $500,000 PRIVATE PLACEMENT

Atlanta Gold Inc. has completed the previously announced private-placement offering of units (see news release of Sept. 25, 2012) for gross proceeds of $500,000. The company issued 16,666,666 units at a price of three cents per unit, with each unit consisting of one common share and one-half of one common share purchase warrant. Each whole warrant is exercisable for a period of up to 24 months from closing of the offering and will entitle the holder to purchase one additional common share at five cents for the initial 12 months from closing and at 10 cents per share thereafter. The company has the right to accelerate the expiry date of the warrants if the closing price of the company's common shares on the TSX Venture Exchange exceeds 15 cents for 20 consecutive days on which the company's shares trade.

Sprott Asset Management LP, acting on behalf of a Sprott fund, subscribed for 12,866,666 units in the offering, which resulted in Sprott Asset Management, on behalf of certain funds and managed accounts, owning approximately 17.0 per cent of the outstanding shares of the company, assuming exercise of warrants by Sprott Asset Management.

Approximately $261,000 of the net proceeds from the offering will be used to reduce existing trade payables and the balance will be used for general working capital purposes, including payment of salaries, rental and lease payments, and listing fees.

The company paid a finder's fee of $20,000 and issued 666,666 compensation options, with each compensation option entitling the holder to purchase one common share at a price of 10 cents per share for one year.

All securities issued under the offering will be subject to a four-month statutory hold period, which will expire on Feb. 3, 2013.