Atlanta Gold Completes Second Tranche of Private Placement

TORONTO, Aug. 8, 2011 /CNW/ --
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR
DISSEMINATION IN THE UNITED STATES/

TORONTO, Aug. 8, 2011 /CNW/ - Atlanta Gold Inc. (TSXV:ATG) (OTCQX:ATLDF) announced that it has completed the second tranche of its previously announced
$2.5 million private placement offering of Units (see news release
dated July 21, 2011) for gross proceeds of $763,900, having previously
completed an initial tranche of $947,700.  The Company issued
10,912,858 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 $23,072 and issued 329,600
compensation options to finders 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 December 6, 2011. The Company anticipates completing the
balance of the offering next week.

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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