The Company’s share price has yet to reflect the following positive developments:

    1. The change in the Company’s mining strategy from a large scale open pit, cyanide heap leach operation to a combined shallow pit and underground mining operation with an on-site milling facility with no cyanide circuit. The Company estimates that this change in strategy will result in an 85% reduction in the environmental or surface footprint of the project and an increase in recovery rates from 63% to 90%

    2. The Company’s current exploration program is focused on the Atlanta Shear Zone which has a surface expression that is 3,474 metres (11,400 feet) long, 9 to 37 metres (30 to 120 feet) wide and extends from surface to a known vertical depth of 610 metres (2,000 feet) with numerous veins branching off to the northwest and southeast of the main Shear and with satellite mineralization systems in areas surrounding the main Shear, including the 1,219 metre (4,000 foot) long Tahoma structure which is located approximately 805 metres (half a mile) north of the main Shear. Management believes that there is significant upside potential in these satellite systems which have all hosted historic mines. Historic production of 344,000 equivalent ounces Au combined with the remaining March 30 2009 NI 43-101 compliant resource estimate of 474,900 equivalent ounces Au down to a vertical depth of 305 metres (1,000 feet) establishes original mineralization of approximately 819,000 equivalent ounces of gold in the top 305 metres (1,000 feet) of the main Shear. The exploration hypothesis at Atlanta is that this original 819,000-equivalent ounce resource is representative of continued layers of the Shear at depth. If this concept proves to be correct, it will corroborate management’s belief in the multi-million ounce potential of the AtlantaBased on a calculation using historic production data and exploration results to date and on conservative assumptions (e.g. 50% probability of continuity to a vertical depth of 305 metres (1,000 feet) below existing mine workings; no continuity below a vertical depth of 610 metres (2,000 feet); taking into account only 50% of the length of the Atlanta Shear Zone, the Company estimates that Atlanta has a potential resource of 3.6 million+ equivalent ounces of gold and 11.2+ million ounces of silver (Ag). While this is not a “43-101” calculation, it indicates the potential upside of the Atlanta project. All exploration results to date corroborate (i.e. nothing contradicts) this hypothesis.

    3. The Company has recently completed its 2010 exploration program. Historic results together with the confirmation in 2010 of continuity at depth and discovery at depth of a parallel gold-bearing structure north of the Atlanta Shear Zone. In addition, the main Shear appears to connect to the previously known and explored 1,219 metre (4,000 foot) long Tahoma structure which is located approximately 805 metres (half a mile) north of the main Shear. These results warrant an aggressive follow up drilling program in 2011. The Company plans to complete up to 18,300 metres (60,000 feet) of core drilling during Q2 and Q3 of 2011.

    4. The Company has a near term production target of 40,000 equivalent ounces of gold in 11,000 tons of concentrate per year. This target is based on processing 272,000 tons through an 800 to 1,200 ton per day dual circuit mining and gravity-flotation milling operation. Mining is expected to commence in late 2012 or early 2013. The Company estimates a 12-year mine life based on the aforementioned production rate. The Company has begun the process of making strategic investments in equipment and other infrastructure. On February 1, 2010 the Company completed the purchase of US$1.0 million of equipment from Newmont USA Limited through an all share transaction (4,535,600 shares @ $0.22 per share). Equipment purchased included a 26,000 square foot office, truck shop and warehouse building, a 3,600 square foot assay laboratory building, four 2,200-horsepower diesel-powered generators and two water treatment plants as well as other equipment. In September 2010, the Company completed the dismantling and shipment of the buildings and equipment from three Newmont sites in Nevada to Idaho.

    5. Atlanta has an agreement in principle with Newmont to purchase up to US$500,000 of additional equipment to be identified at a later date. Newmont also agreed in principle to purchase and process the gold-silver concentrate to be produced from Atlanta on terms to be negotiated. Gold recovery is expected to be 90%, using conventional milling, gravity separation and flotation techniques to produce the concentrate. The gold-silver concentrate would be delivered for final treatment to Newmont’s autoclave plant in Nevada, which is within a one-day return trucking distance from Atlanta, Idaho. Management believes that the completion of the transactions with Newmont represent a very important milestone for the Company as they will secure a market for the Company’s concentrate, provide necessary infrastructure on favourable terms to advance development of Atlanta, allow the Company to conserve cash, significantly reduce the Company’s future capital costs and support the Company’s on-going financing efforts.

    6. The management team of Atlanta Gold has a proven track record and understands the importance of taking a proactive approach to environmental improvement and protection. Directors and management own approximately 9.6%, Sprott Asset Management owns 12.2% and Newmont USA Limited owns 3.1% of the Company.

Therein lies the true potential of the Atlanta Gold Project, with the opportunity for investors to gain entry at ground level.