Atlanta Gold Inc. Completes $870,000 Private Placement

TORONTO, Dec. 19, 2012 /CNW/ - Atlanta Gold Inc. (TSXV: ATG; OTCQX: ATLDF) announces that it has completed its previously announced $870,000 private placement offering of Units (see news releases of November 5 and December 11, 2012). On November 9^th, the Company had issued 12,120,000 Units at a price of $0.05 per Unit for gross proceeds of $606,000 and today issued an additional 5,280,000 Units for additional proceeds of $264,000, for aggregate gross proceeds of $870,000. Each Unit consisted of one common share and one common share purchase warrant. Each 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 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.

Given that many junior companies are having difficulty accessing financing, management is pleased to have an oversubscribed Offering which is a testament to investor support for the Atlanta project.

The Company paid cash finder's fees of $4,200 and issued 84,000 compensation options in connection with the second closing. Each compensation option entitles the holder to purchase one common share of the Company at a price of $0.10 per share for one year.

All securities issued on the second closing will be subject to a four-month statutory hold period, which will expire April 20, 2013.

Insiders of the Company acquired 230,000 Units, representing 4.4% of the Units issued on the second closing.

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.

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.