Mr. Ernest Simmons reports

ATLANTA GOLD LAUNCHES US$8 MILLION SENIOR SECURED GOLD NOTES PRIVATE PLACEMENT

Atlanta Gold Inc. intends to complete a private placement of senior secured gold notes for gross proceeds of up to $8-million (U.S.). The gold notes will be sold as part of a unit, with each unit consisting of $1 (U.S.) principal amount of gold notes and one common share purchase warrant, exercisable at 10 cents per share. Units will be issued in minimum denominations of $100,000 (U.S.).

The gold notes will bear interest of 10 per cent per annum, and interest as well as principal, amortized at 25 per cent, 35 per cent and 40 per cent, will be repayable annually on Nov. 30, 2013, 2014 and 2015, respectively. Principal and interest will be repayable in physical gold, or at the election of either the company or the investor, in the cash equivalent thereof based on spot gold prices at the time of payment. The number of ounces of gold to be delivered to each investor in satisfaction of principal and interest payments will be calculated based on reference gold prices per ounce of $1,300 (U.S.) in year one, $1,200 (U.S.) in year two and $1,100 (U.S.) in year three. The gold notes will be secured by a limited recourse guarantee of the company's wholly owned subsidiary, Atlanta Gold Corp. (AGC), and the guarantee will be secured by a first-ranking mortgage of AGC's right, title and interest in the Atlanta project, located in Idaho, United States.

The warrants will be exercisable at an exercise price of 10 cents per share until Nov. 30, 2015. The company will have 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 25 cents for 20 consecutive days on which the company's shares trade.

Net proceeds from the offering will be used for exploration, excavating and test processing of bulk samples, environmental permitting, engineering and development in respect of the Atlanta project, to reduce indebtedness, and for general working capital purposes.

Completion of the offering is subject to the approval of the TSX Venture Exchange and the execution of definitive documentation. All securities issued under the offering will be subject to a four-month statutory hold period. Certain insiders of the company may participate in the offering.

Eric Sprott has personally signed a non-binding letter of intent reflecting his intention to purchase the first $2-million (U.S.) of the units. The company will pay a 4-per-cent cash finder's fee to Brant Securities Ltd. in connection with this purchase, subject to regulatory approval.

"This offering and Eric Sprott's commitment for the first $2-million (U.S.) of the offering represent an important milestone in the development of the Atlanta project providing the potential to finance project development without excessive dilution," said Atlanta Gold president and chief executive officer Wm. Ernest Simmons. "Key objectives are to work closely with the government and local community at Atlanta, to establish an environmentally friendly mining project, and to determine the economic viability to develop the mineral resource in a responsible manner."

We seek Safe Harbor.