Atlanta Gold to Increase Size of Private Placement

TORONTO, Dec. 11, 2012 /CNW/ - Atlanta Gold Inc. (TSXV: ATG; OTCQX: ATLDF) announces that due to demand from investors, it intends to increase the size of its non-brokered private placement, as previously announced by news release of November 5, 2012, from a maximum of 15,000,000 to 17,400,000 Units at a price of $0.05 per Unit, for gross proceeds of up to $870,000. All other terms of the financing will remain the same as previously announced. Each Unit will consist of one common share and one warrant to purchase a common share of the Company. Each whole warrant is exercisable for a period of 24 months from closing of the offering and will entitle the holder to purchase one additional common share at $0.10 for the initial 12 months from closing and at $0.15 per share thereafter. 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 ("TSXV") exceeds $0.20 for 20 consecutive days on which the Company's shares trade. Net proceeds from the offering will be used to reduce indebtedness and for general working capital purposes.

The increase in the size of the placement is subject to the approval of the TSXV.  Subject to receipt of TSXV approval, the Company expects to close the balance of the private placement by not later than December 19, 2012.  The Company previously closed an initial tranche of the placement consisting of 12,120,000 Units for gross proceeds of $606,000 on November 9, 2012.

The Company will pay a finder's fee to registrants consisting of an 8% cash commission and 8% in compensation options, with each compensation option entitling the holder to purchase one common share at a price of $0.10 per share for one year from closing. All securities issued under the offering will be subject to a hold period of four months and a day from the date of issuance of the securities.

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 with respect to the completion of the balance of the private placement offering and the use of proceeds from the offering. Such are based upon assumptions, 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 continued availability of adequate financing, no significant decline in existing general business and economic conditions, and the level and volatility of the gold price.  Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied by 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 the Company's limited financial resources, changes in general economic conditions or conditions in the financial market, changes in resource prices and fluctuations in currency exchange rates, the speculative nature of mineral exploration, development and mining, as well as other risks and uncertainties which are more fully described in the Company's annual and quarterly Management Discussion and Analysis and in other Company filings made with securities regulatory authorities, which are available at www.sedar.com.  Readers are cautioned that the foregoing lists of risks, uncertainties and assumptions are not exhaustive.  The forward-looking statements are made as of the date hereof.  The Company undertakes no obligation to update publicly or revise any forward-looking statements contained herein 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.

SOURCE Atlanta Gold Inc.