Mr. Bill Baird reports

ATLANTA GOLD INC. UPGRADES PILOT WATER TREATMENT FACILITY TO ACHIEVE EPA COMPLIANCE

Atlanta Gold Inc.'s wholly owned subsidiary, Atlanta Gold Corp., is currently installing proprietary upgrades to AGC's pilot water-treatment facility (PWTF), which are expected to be operating by Oct. 31. These upgrades are in accordance with the final filter plans and specifications that have been approved by the United States Forest Service. The upgraded PWTF is designed to treat water containing elevated levels of naturally occurring arsenic.

As previously announced in the company's news release of July 20, on July 19, the court ordered AGC to achieve compliance with the NPDES permit regulated under the U.S. Federal Water Pollution Control Act by Oct. 31, 2012, with respect to treatment of water discharge at the historic 900-level adit, which is located on property owned by the Bureau of Land Management and administered by the USFS near Atlanta, in Elmore county, Idaho. The court also imposed a penalty in the amount of $2-million (U.S.) to be paid by Oct. 31, 2012. The court has extended the time for achieving compliance with the terms of the NPDES permit to Dec. 15, 2012.

Ernie Simmons, president and chief executive officer of the company, commented: "It has been a challenge to develop and implement an effective water-treatment facility within the required timeframe. Like our neighbours, we have been concerned about the devastation and delays caused by the forest fires that have rolled across the state. Even though fire-safety concerns kept us off the project site for seven weeks, I am now pleased to report that we expect that our upgraded pilot water-treatment facility will meet compliance by Oct. 31. This demonstrates our commitment to operate the Atlanta project in an environmentally responsible manner that meets all applicable standards."

As prescribed in the government-approved supplemental plan of operations and the final filter plans and specifications for the Atlanta mine project, the new and proprietary passive water-treatment system is expected to treat and capture 99.8 per cent or more of the arsenic, enabling compliance with the Clean Water Act. The Clean Water Act NPDES permit requires that no more than 10 micrograms per litre or parts per billion arsenic be discharged into Montezuma creek. Personnel are currently installing two zero-valent iron filter tanks on site that house the last stage of the treatment system. The customized 38-foot-long tanks have a total capacity of 36,000 gallons, and provide a resident exposure time (for the arsenic to bond with the zero-valent iron) equivalent to that which would be provided by a 200,000-gallon open-air pond.

Arsenic readings will continue to be monitored on a weekly basis and reported monthly to the USFS, the Idaho Department of Environmental Quality and the U.S. Environmental Protection Agency.

AGC did not construct the adit or cause the discharge that flows from the adit. AGC has treated discharge from the adit since 2006 to remove 85 per cent of the naturally occurring arsenic before it flows into Montezuma Creek.

We seek Safe Harbor.