Mr. William Simmons reports

ATLANTA GOLD COMPLETES INITIAL CLOSING OF SECURED NOTES PRIVATE PLACEMENT

Atlanta Gold Inc. has completed the initial closing of its previously announced private placement of units consisting of senior secured notes and common share purchase warrants. The company issued $4-million (U.S.) principal amount of notes and four million warrants, for gross proceeds of $4-million (U.S.). The TSX Venture Exchange has granted the company an extension to Aug. 30, 2013, to complete the placement of up to an additional five million units.

The notes bear interest at 10 per cent per year, and the principal will be amortized at 25 per cent, 35 per cent and 40 per cent, repayable in cash instalments on Aug. 31, 2014, Aug. 31, 2015, and Aug. 31, 2016, respectively. The notes are secured by the limited recourse guarantee of the company's subsidiary, Atlanta Gold Corp. (AGC), and by a mortgage of AGC's interest in its Atlanta project.

Each warrant entitles the holder to purchase one common share of the company for 10 cents per share until Aug. 31, 2016. 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.

Noteholders received options exercisable until Aug. 31, 2016, to purchase a total of 95 troy ounces of gold at $1,125 (U.S.) per ounce for every 100,000 units purchased ($100,000 (U.S.)). Of the total ounces optioned per 100,000 units, 23.75 ounces (25 per cent) will vest on Aug. 31, 2014, 33.25 ounces (35 per cent) will vest on Aug. 31, 2015, and 38 ounces (40 per cent) will vest on Aug. 31, 2016.

Eric Sprott purchased 2.2 million units and Concept Capital Management Ltd. purchased 1.3 million units. Two directors of the company purchased a total of 500,000 units. The company paid a finder's fee of $140,000 (U.S.) in connection with the initial closing. All securities issued on closing of the initial tranche are subject to a four-month statutory hold period that will expire on Dec. 20, 2013.

Net proceeds from the offering will be used for exploration, the excavating and test processing of bulk samples, environmental permitting, engineering, and development in respect of the Atlanta project, payment of liabilities, implementation of the supplement plan of operations, and general working capital purposes.

We seek Safe Harbor.