Atlanta Gold Receives Clean Water Act Judgment

TORONTO, July 20, 2012 /CNW/ - Atlanta Gold Inc. (TSXV: ATG; OTCQX: ATLDF) (the "Company") announces that the U.S. District Court for the State of Idaho issued a Memorandum Decision on July 19, 2012 ("The Decision") in a case in which the Company's wholly-owned subsidiary, Atlanta Gold Corporation ("AGC") is a party, pertaining to AGC's non-compliance with the United States Federal Water Pollution Control Act ("Clean Water Act").  The Court imposed a penalty in the amount of $2,000,000 to be paid on or before October 31, 2012.  In addition, the Decision orders AGC to implement measures to come into compliance with the NPDES Permit by that same date.

The Company's CEO Wm. Ernest Simmons commented "The Court has rendered a decision and AGC intends to honor its ruling, comply with its direction and pay the imposed fine. We appreciate that the Court recognized that the existing pilot water treatment facility ("PWTF") removes a significant amount of toxic materials from the Adit waters.  With the penalty-phase defined, the Company will commence improvements to the PWTF to meet compliance with the Clean Water Act, to initiate final closure and remediation of the Adit, and to develop the Atlanta Project subject to approval of the U.S. Forest Service," commented Simmons.

The Court's earlier decision, reported in the Company's news release dated January 10, 2012, held that AGC was not in compliance with the Clean Water Act with respect to its operation of the PWTF at the historic 900 level adit (the "Adit") which is located on property owned by the Bureau of Land Management and administered by the United StatesForest Service near Atlanta, Idaho. AGC did not construct the Adit or cause the discharge that flows from the Adit. The PWTF has treated discharge from the Adit since 2006 to remove 85% of the naturally-occurring arsenic before it flows into Montezuma Creek.

AGC has been working closely with the regulatory agencies over the past four years to evaluate alternative methods to decrease effluents and select the optimum method for water treatment. AGC has submitted a staged Supplemental Plan of Operations ("SPOO") and a closure plan for the Adit intended to resolve all issues relating to the Adit discharge. Subject to approval by the U.S. Forest Service, AGC's 2012 SPOO and Remedial Action Plan ("RAP") are expected to be initiated in July 2012.  Given the mandates of the Court's Decision, that process will be expedited and completed at the earliest time possible. 

About the Company
Atlanta Gold Inc. holds through its 100% owned subsidiary, Atlanta Gold Corporation, leases, options or ownership interests in its Atlanta properties which comprise approximately 2,159 acres (8.74 square kilometers) located 90 air kilometers east of Boise, in Elmore County, Idaho. A long history of mining makes Atlanta very suitable for development of new mining projects.  The Company is focused on advancing its core asset, Atlanta, towards mine development and production.

Forward-Looking Information
This news release contains forward-looking information and forward-looking statements (collectively "forward-looking statements") within the meaning of applicable securities laws. All statements, other than statements of historical fact, are forward-looking statements. We use words such as "may", "intend", "will", "should", "anticipate", "plan", "expect", "believe", "estimate" and similar terminology to identify forward-looking statements, including with respect to the advancement of the Project and the receipt of regulatory approval of the SPOO and RAP and completion of AGC's obligations thereunder and under the Court's decision. Such are based upon assumptions, estimates, opinions and analysis made by management in light of its experience, current conditions and its expectations of future developments as well as other factors which it believes to be reasonable and relevant. These assumptions include those concerning the successful and timely completion of additional financings by the Company, availability of requisite equipment, the ability to achieve water treatment standards by October 31, 2012, and other cost estimates, and general business and economic conditions. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results to differ materially from those expressed or implied in the forward-looking statements and accordingly, readers should not place undue reliance on those statements. Risks and uncertainties that may cause actual results to vary include, but are not limited to, the Company's limited financial resources and its ability to raise sufficient funds on a timely basis to fund the capital and operating expenses necessary to carry out the terms of the Court's decision, achieve its business objectives and continue as a going concern; operational and technical difficulties; risks and hazards associated with the business of mineral exploration, development and mining, including environmental, health and safety hazards, changes in laws or regulations and the risk of obtaining necessary consents, licenses and permits; changes in general economic conditions and in the financial markets; as well as other risks and uncertainties which are more fully described in the Company's annual and quarterly Management's Discussion and Analysis and in other Company filings with securities and regulatory authorities which are available at www.sedar.com. Should one or more risks and uncertainties materialize or should any assumptions prove incorrect, then actual results could vary materially from those expressed or implied in the forward-looking statements and accordingly, readers should not place undue reliance on those statements. Readers are cautioned that the foregoing lists of risks, uncertainties, assumptions and other factors are not exhaustive.  The forward-looking statements contained in this news release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements contained herein or in any other documents filed with securities regulatory authorities, whether as a result of new information, future events or otherwise, except in accordance with applicable securities laws.

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