Mr. Bill Baird reports

ATLANTA GOLD REPORTS POSITIVE RESULTS FROM PRELIMINARY METALLURGICAL TESTWORK

Atlanta Gold Inc. has received positive metallurgical results from the 107-ton bulk sample extracted from exploration trenches at its Atlanta gold project in Elmore county, Idaho.

As previously announced on July 5 and Aug. 12, the company processed the initial bulk sample at Knife River Corp.'s test facility in Boise, Idaho. This test facility is meant to model Knife River's process plant operating in Idaho City, which is effectively a giant sluice box that washes away lighter crushed rock from the gold particles. It uses no chemicals, is cost-effective and is described in more detail in a Sept. 15 local news article.

"These initial metallurgical test results confirm that the processing method successfully liberates the gold content present in the extracted material. We plan to work with Knife River to replicate the existing process facility on the Atlanta project site, improve the technology and customize it for Atlanta's purposes. Apart from the significant environmental benefits, such as no use of chemicals, the recycling of water and the capturing of heavy metals, the capital and operating costs for this type of facility are expected to be much less than those for a conventional mill," said Ernie Simmons, president and chief executive officer of the company.

The 107-ton bulk sample was crushed down to a feed size of one-eighth, which was processed in two days through the gravity-washed system, and samples were assayed at four collection points in the system (feed, sluice carpet, underjig and tailings). Free gold particles collected in the system would be sent for refining into dore gold bars; while the remaining sulphide material, commonly referred to as black sand, will be further processed off-site.

               TEST RESULTS 

Bulk sample         Au grade         Weight    
                  (oz/t) (g/t)    (t)    (lb)

Feed              0.049  1.69 107.00 214,000
Sluice            1.341 45.98   0.34     680
Underjig          0.058  2.00   7.50  15,000
Tailings          0.048  1.63  99.16 198,320
Total sample                  107.00 214,000

Notes:

• One troy ounce per short (imperial) ton equals 34.2857 grams per (metric) tonne or 34.2857 parts per million.

The results indicate that processing of the initial bulk sample left significant amounts of gold behind in the tailings. Further testwork is obviously necessary to improve recovery. Therefore, the company will reduce the grind size of material to a feed size of plus-50 (plus-10-millimetre) mesh, relocate the jigs and reduce the angle of the sluice boxes so that less than 0.001 ounce per ton (0.034 gram per tonne) gold remains in the tailings. A small test sample has been successfully processed subsequent to the 107-ton bulk sample and demonstrates the potential of this refinement. It is anticipated that a continuing program will be necessary to customize the process for the material extracted from the exploration trenches and to optimize recoveries.

The company had previously anticipated that the 107-ton bulk sample would yield a gold and silver concentrate weighing less than 1,000 pounds (news release of Aug. 1, 2012). By implementing the above processing changes, the company expects to meet its recovery and concentrate grade objectives.

Qualified person

Eric Berentsen, a director of Atlanta Gold and a qualified person as defined by National Instrument 43-101, has reviewed and verified the technical information contained in this news release. Mr. Berentsen is a registered member of the Society for Mining, Metallurgy and Exploration Inc.

Quality control and assurance

Assay analyses are done by Inspectorate America Corp. of Sparks, Nev. Inspectorate is an international laboratory that has operated in Nevada for more than 10 years. The facility is International Organization for Standardization (ISO) certified 9001:2008. Quality control and assurance of the analytical results are maintained at the laboratory by inserting standards and blanks into the sample run.

We seek Safe Harbor.