Scotgold lists on ASX as Scotland's only significant gold producer

Beinn Laoigh or calf hill is one of Scotland's most spectacular and
highest mountains and with its scalloped central corrie -
Coire Gaothaich - and its twin craggy summits it dominates the Strath Fillan area and bears over Cononish Glen to the north east.

Scotgold having successfully raised A$4.9m via an IPO launched in November 2007, will use the funds to pursue a number of advanced gold exploration targets in Scotland, It aims to become the only significant gold mining company in the country, and an initial review of historical data has been carried out, with drilling contracts expected to be signed shortly.

In November 2007 Scotgold launched a prospectus to raise A$4 million through the issue of 16,000,000 shares at A$0.25 each - with a further A$2m raised with oversubscriptions. Montagu Stockbrokers was the Sponsoring Broker and Lead Manager to the issue.

On listing Scotgold will have 63.4m shares on issue and a market capitalisation of A$15.85m (at issue price).

Scotgold non-executive chairman Mr Shane Sadleir said that, following the successful closure of the IPO, the company will now be working towards fast-tracking the establishment of a gold mine at its key project of Cononish in Western Scotland and becoming the only significant gold mining company in Scotland, a country not usually thought of for its mining prospects.

"We have been overwhelmed by the market's reaction to the IPO given it occurred so close to Christmas, but it is clear to us that people see the immense potential in our Scottish gold projects and our aggressive time-frame to get them into production."

"As a priority, Scotgold plans to undertake an assessment of the known gold and silver mineralisation at Cononish, 90km north of Glasgow, with the aim of determining a JORCcompliant resource in the first quarter of 2008," Mr Sadleir said.

"Much of the hard work has already been done for us, with the previous owners carrying out exploration on the project over some 15 years, including diamond drilling and the construction of a 1.2km tunnel along the vein, culminating with Planning Approval for a small mining operation of 25,000 ounces of gold per annum in 1996. A downturn in the gold price shortly after saw the project placed in care and maintenance for the next 10 years".

An initial review of historical data has been carried out, with drilling contracts expected to be signed shortly. Drilling of defined exploration targets in 2008 will focus on increasing the extent of known gold and silver mineralisation around Cononish and, subject to successful exploration, the preparation of a Bankable Feasibility Study, including an up-to-date Mine Plan and appropriate environmental management practices.

Scotgold acquired the Cononish project through the acquisition of UK company, Fynegold Exploration, in May last year, which also brought the company an extensive gold, silver and base metal exploration database covering Scotgold's entire Grampian gold project.

The company's 100% owned exploration licences cover about 2,200km  of Central Scotland and the company is eager to commence regional exploration activities with a number of exciting gold prospects, including high-quality, ready-to-drill targets for lode-hosted gold mineralisation along the Tyndrum Fault Zone in Glen Fyne.

"The successful implementation of gold mining operations would represent only stage 1 of an ambitious project for Scotgold", Mr Sadleir said. "Unlike most other gold mining companies in the world, we hope to add value to the uniquely Scottish nature of the gold produced and intend to have early discussions with a number of local jewellery manufacturers."

The Company has strong affinities with Scotland. CEO Chris Sangster, a graduate of the Royal School of Mines in London with honours in mining and engineering, lives at Comrie in Scotland and worked as GM at Cononish for four years up to 1999. Dr Ron Thom, Scotgold's exploration director, was born and educated in Scotland. He graduated from the University of St Andrews and later also attended the Royal School of Mines where he gained his PhD in structural geology.

Scotgold also has strong environmental credentials, with its chairman and geologist/soil scientist  Sadleir having spent 11 years of his career with the Environmental Protection Authority in Western Australia.

 The Company aims to apply the highest standards to its exploration and mining activities and hopes that its first mine will be one of the world's "greenest" gold mines.