Toronto, Ontario – Atlanta Gold Inc. (TSXV: ATG; OTCQX: ATLDF) announces that its wholly-owned subsidiary, Atlanta Gold Corporation (“AGC”) is currently installing proprietary upgrades to AGC’s pilot water treatment facility (“PWTF”) which are expected to be operating by October 31st. These upgrades are in accordance with the “Final Filter” plans and specifications which have been approved by the U.S. Forest Service (“USFS”). The upgraded PWTF is designed to treat water containing elevated levels of naturally-occurring arsenic.

As previously announced in the Company’s news release of July 20th, on July 19th the Court ordered AGC to achieve compliance with the NPDES Permit regulated under United States Federal Water Pollution Control Act (“Clean Water Act”) by October 31, 2012, with respect to treatment of water discharge at the historic 900 level adit (the “Adit”) which is located on property owned by the Bureau of Land Management (“BLM”) and administered by the USFS near Atlanta, in Elmore County, Idaho. The Court also imposed a penalty in the amount of US$2,000,000 to be paid by October 31, 2012. The Court has extended the time for achieving compliance with the terms of the NPDES permit to December 15, 2012.

Ernie Simmons, President and CEO of the Company commented: “It has been a challenge to develop and implement an effective water treatment facility within the required timeframe. Like our neighbors, we have been concerned about the devastation and delays caused by the forest fires that have rolled across the State. Even though fire safety concerns kept us off the project site for seven weeks, I am now pleased to report that we expect that our upgraded pilot water treatment facility will meet compliance by October 31st. This demonstrates our commitment to operate the Atlanta project in an environmentally responsible manner that meets all applicable standards.”

As prescribed in the government approved Supplemental Plan of Operations (“SPOO”) and the Final Filter plans and specifications for the Atlanta mine project, the new and proprietary passive water treatment system is expected to treat and capture 99.8% or more of the arsenic, enabling compliance with the Clean Water Act. The Clean Water Act NPDES Permit requires that no more than 10 micrograms per liter (10 µ/L) or parts per billion arsenic be discharged into Montezuma Creek. Personnel are currently installing two Zero Valent Iron Filter tanks on-site which house the last stage of the treatment system. The customized 38-foot long tanks have a total capacity of 36,000 gallons, and provide a resident exposure time (for the arsenic to bond with the zero valent iron) equivalent to that which would be provided by a 200,000-gallon open air pond.

Arsenic readings will continue to be monitored on a weekly basis and reported monthly to the USFS, the Idaho Department of Environmental Quality (“IDEQ”) and the U.S. Environmental Protection Agency (“EPA”).

AGC did not construct the Adit or cause the discharge that flows from the Adit. AGC has treated discharge from the Adit since 2006 to remove 85% of the naturally-occurring arsenic before it flows into Montezuma Creek. The Company’s proprietary pilot passive water treatment system is illustrated below.

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 the completion of upgrades to the PWTF and the ability of the system to achieve compliance with the NPDES Permit. 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 requisite equipment and manpower; and the ability to achieve operating 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 and Atlanta Gold Corporation’s (“AGC”) limited financial resources and their ability to raise sufficient funds on a timely basis to fund the capital and operating expenses necessary for AGC to carry out the terms of the Court’s order;  operational and technical difficulties which could delay or prevent compliance with the Court order; the implementation of additional penalties by the Court should compliance with the Court’s order not be achieved in the time permitted; 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 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.

For further information contact:

Atlanta Gold Inc.:

Wm. Ernest Simmons
President and CEO
Telephone: (208) 424-3343
Fax: (208) 338-6513
Email: [email protected]

Atlanta Gold Inc.

Bill Baird
Vice President and CFO
Telephone: (416) 777-0013
Fax: (416) 777-0014
Email: [email protected]

CHF Investor Relations

Jeanny So
Director of Operations
Telephone: (416) 868-1079 ext. 225
Fax: (416) 868-6198
Email: [email protected]