Mr. W. Ernest Simmons reports

ATLANTA GOLD REACHES AGREEMENT ON PAYMENT SCHEDULE FOR CLEAN WATER ACT PENALTY

Atlanta Gold Inc.'s wholly owned subsidiary, Atlanta Gold Corporation (AGC), and all parties to the compliance litigation brought under the United States Federal Water Pollution Control Act have agreed to a payment plan whereby AGC will pay the previously imposed $2-million (U.S.) penalty over a five-year period.

The parties to the Clean Water Act litigation, including the U.S. Attorney as intervenor in the matter, have signed an unopposed motion for consent judgment and approved a proposed consent judgment for signature by the court. The motion and correlating consent judgment provide that AGC will pay the $2-million (U.S.) penalty in quarterly instalments over a five-year period, with the instalment amounts increasing on an annual basis. The unpaid balance of the penalty will bear interest at the rate of 0.1 per cent per annum and will be secured by recording the consent judgment against AGC's Amity property located in Boise, Idaho, and by a security interest, granted to the U.S. Attorney's office, in four generators owned by AGC located on the Amity property. AGC has made an initial payment of $50,000 (U.S.) pursuant to the provisions of the motion.

The motion and proposed consent judgment have not been filed, as the parties are awaiting an order from the court approving the U.S. Attorney's intervention in the case, to which all parties stipulated. Following the filing of the motion and proposed consent judgment, it is anticipated that the court will sign and enter the consent judgment to the payment plan.

We seek Safe Harbor.