Mr. William Simmons reports

ATLANTA GOLD ACHIEVES CRITICAL ENVIRONMENTAL MILESTONE

Atlanta Gold Inc. has installed a water filtration and treatment system as an addition to its existing pilot water treatment facility at the Atlanta project site, Idaho. This marks the achievement of a critical environmental milestone that meets the requirements of the site's existing water permit.

"This innovative passive water filtration system was installed as it was the system that met all requirements to treat the historic discharge from the 900 level adit. These requirements included that the system not only be effective but require minimum energy with low operating costs and capital outlay. We were not previously aware of this type of application for this system, but expect now to be able to benefit from the marketing of it by another party," said president and chief executive officer, William Ernest Simmons.

Initial results from this system indicate the PWTF is now meeting the existing National Pollutant Discharge Elimination System discharge permit requirements for arsenic and iron. Mr. Simmons commented further: "I'm very pleased with the results thus far. Arsenic levels have been reduced from a high of approximately 5,000 ppb to non-detectable. Iron levels have been reduced from a high of 16,300 ppb to non-detectable (less than 50 ppb). Continued performance at this level of efficiency will allow Atlanta Gold to demonstrate compliance with permit requirements and provide the opportunity to move forward with mine development."

Atlanta Gold and its engineering firm, Centra Consulting Inc., completed the design, construction and installation of the new system over the course of 60 days. Operation of the system began on Nov. 1, 2012. Centra's project engineer, Ryan Eldridge, indicated he also is very pleased with how the system is performing, "We still have some fine-tuning to do, but thus far things are going remarkably well."

                                                   RESULTS
                                          (in micrograms per litre) 
                                                                                                  Tank No. 2, cell  
                                                                     Tank No. 1, cell No. 1        No. 3 effluent    
               Bulkhead          Adit discharge      Ponds discharge      effluent into             (discharge to
Date          discharge            (into ponds)    (into tank No. 1)        tank No. 2             Montezuma Creek)
             As         Fe          As        Fe      As          Fe    As             Fe           As          Fe 

Oct. 1    2,840     15,300       1,830    11,600
October
average                                              136       1,774
Nov. 5    3,160     16,300       1,870    11,600     173       2,630
Nov. 6                                                                  65          1,550           29         430
Nov. 8                                                                                              10          70
Nov. 13   2,610     15,200       1,840    11,000                         6            210           <5         <50
Nov. 15                          1,840    12,000                                                    <5         <50
Nov. 19   2,470     15,200       1,760    11,900     198       3,030    46          6,080           <5         <50
November
average   2,770     15,500       1,828    11,620     169       2,478    39          2,613

The results shown in the table demonstrate that the PWTF is currently removing approximately 99.9 per cent of arsenic, and approximately 99 per cent of the iron from the water prior to discharge into Montezuma Creek, which meets the NPDES discharge requirements for the system. With continued monitoring and adjustments to the system if required, AGC and Centra believe that the system will meet the compliance requirements for discharge by the court-ordered date of Dec. 15, 2012.

We seek Safe Harbor.