Atlanta Gold Completes Initial Tranche of Private Placement

TORONTO, July 29, 2011 /CNW/ --
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/

TORONTO, July 29, 2011 /CNW/ - Atlanta Gold Inc. (TSXV: ATG) (OTCQX: ATLDF) announced that it has completed an initial tranche of its previously announced
$2.5 million private placeme nt offering of Units (see news release
dated July 21, 2011) for gross proceeds of $947,7 00.  The Company
issued 13,538,570 Units at a price of $0.07 per Unit, with each Unit
consisting of one common share and one common share purchase warrant. 
Each warrant entitles the holder to purchase one additional common
share at a price of $0.11 per share for up to 24 months following the
closing date. The Company has 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 $0.20 for 20 consecutive days on which
the Company's shares trade.  Net proceeds from the offering will be
used for exploration, development and permitting expenditures on the
Company's Atlanta gold property located in Idaho, U.S.A. and for
working capital purposes.

The Company paid cash finder's fees totaling $21,000 and issued 300,000
compensation options to registrants in connection with the closing of
the initial tranche.  Each compensation option entitles the holder to
purchase one common share of the Company at a price of $0.11 per share
for one year.

All securities issued pursuant to the closing of the initial tranche
will be subject to a four-month statutory hold period, which will
expire on November 30, 2011. The Company anticipates completing the
balance of the offering in early August.

Insiders of the Company purchased a total of 3,360,000 Units,
representing approximately 24.8% of the initial tranche of the offering.  James K. Gray of Calgary, Alberta, the Chairman of the Company,
purchased 3,000,000 Units, representing approximately 1.9% of the
Company's current outstanding shares and approximately 3.7% of the
outstanding shares assuming exercise of the warrants only by Mr. Gray.
Following completion of the purchase of the Units, Mr. Gray
beneficially owns 14,955,877 common shares, representing approximately
9.4% of the outstanding shares, as well as warrants to purchase
4,250,000 shares and stock options to purchase 750,000 shares. Assuming
exercise of all of the warrants and stock options owned by Mr. Gray, he
would then own 19,955,877 shares, representing approximately 12.2% of
the Company's then outstanding shares on a partially diluted basis,
assuming no other warrants or stock options are exercised. The Units
were purchased for investment purposes. Mr. Gray has no present
intention to acquire additional shares of the Company but reserves the
right to do so depending on market conditions and other relevant
factors. An early warning report with respect to the foregoing will be
filed on SEDAR.

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 our
intent to complete the balance of the financing and the intended use of
proceeds therefrom. 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 availability of adequate
financing, no significant decline in existing general business and
economic conditions, the level and volatility of the gold price, the
accuracy of the Company's resource estimates and of the geological,
metallurgical and price assumptions on which the estimates are based
and the ability to achieve operating cost estimates. 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 delays in raising additional financing on satisfactory
terms; changes in general economic conditions or conditions in the
financial markets; the speculative nature of mineral exploration,
development and mining (including uncertainties with respect to the
interpretation of geology, continuity, size and grade estimates and
recoverability of mineral reserves and resources); operational and
technical difficulties which could increase operating and/or capital
costs; risks and hazards associated with the business of mineral
exploration, development and mining, including environmental hazards,
changes in laws or regulations, government action and the risk of
obtaining necessary approvals, permits and licenses; fluctuations in
resource prices and in currency exchange rates; contests to the title
of Company's property; 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.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER
(AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE)
ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE. 

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