Mr. Ernest Simmons reports

ATLANTA GOLD'S PASSIVE WATER FILTRATION SYSTEM CONTINUES TO SUCCESSFULLY REMOVE ARSENIC AND IRON

Atlanta Gold Inc., pursuant to the supplemental plan of operations (SPOO) dated Aug. 2, 2012, its innovative passive water filtration system (PWFS) installed on Nov. 1, 2012, by its subsidiary Atlanta Gold Corporation (AGC), continues to remove more than 99 per cent of the arsenic and the iron levels to continue to be in compliance with the U.S. Clean Water Act.

Ernest Simmons, president and chief executive officer of Atlanta Gold, says: "Since its installation on Nov. 1, 2012, when the existing final filter became fully operational, it has removed a substantial amount of arsenic and iron from the effluent, consistently removing 99.9 per cent of the arsenic and more than 99 per cent of the iron. We believe that the removal of the arsenic and iron can be improved upon with a modification to the Final Filter by installing a 'solids removal filter' between the existing settlement ponds and the final filter instead of increasing pond capacity."

AGC has experienced some clogging in the final filter due to suspended solids forming but not settling in the ponds. The solids removal filter will act as an "interceptor" to remove suspended solids that have formed during treatment in the ponds and before they are received by the final filter. The water that will be received by the final filter will contain substantially less suspended solids.

The solids removal filter will consist of two separate cells, one of which can be taken off-line at any given time. The filter material in the cells will consist of silica sand and zero valent iron material. These materials will increase the contact time and the rate of sediment removal. Prior to treatment in the final filter, the inert (TCLP) solids that are collected in the cells can be easily removed and transported to adjacent private property owned by AGC for disposal. By installing the solids removal filter, it is believed that the efficiency of the final filter will be substantially improved and will eliminate the need for the approved 200,000 gallon "East Pond" that is cited in the SPOO.

There have been numerous expressions of interest in AGC's PWFS from communities, mine operators and well water users. The company, AGC and Centra Consulting, Inc. have agreed in principle to work together to market and deliver PWFSs to third parties.