Touchstone Gold Completes Acquisition of El Cinco

Mon Nov 5, 2012 7:00am EST

* Reuters is not responsible for the content in this press release.

Touchstone Gold Limited ("Touchstone") (AIM:TGL) is pleased to announce
the completion of the acquisition of a 60% interest in the El Cinco
property (the "Acquisition") from a Colombian branch of a company (the
"Vendor") through a wholly owned subsidiary of Touchstone which took
effect on 2 November 2012, through the issue of 4,089,762 Touchstone
Ordinary Shares valued at $750,000 (the "New Shares") and the issue of a
short term promissory unsecured note to the Vendor for the balance of

    Key Highlights: 

--  17km sq increase in Touchstone's Segovia Gold Project, adjacent to El
    Cinco property 
--  Combined asset to include over 15km of prospective strike length where
    Touchstone has already reported encouraging high-grade drill results 
--  High Grade gold mineralization and geology identified within the 1141
    Zone at Rio Pescado known to extend south onto the El Cinco property 
--  Geochemical and geophysical anomalies open to the south and along trend
    onto El Cinco ground 
--  El Cinco to be one of the primary areas of focus for Touchstone's stage
    4, 20,000m to 25,000m, drill programme in Q4 2012 - Q4 2013 

    David Wiley, the Chief Executive Officer of Touchstone, commented:

    "We are very pleased to announce the completion of this transaction,
which significantly enhances the potential of our highly promising
Segovia gold project. It is especially encouraging that the high grade
gold mineralisation identified at our 1141 project appears to extend onto
El Cinco, which will be one of our main areas of focus for the upcoming
Stage 4 drilling programme. We look forward to an exciting time ahead as
we work to build Touchstone into a significant gold producer in the

    About Touchstone 

    Touchstone is a gold exploration company and its primary assets, which
collectively comprise its Segovia Gold Project, are the Rio Pescado, El
Cinco, San Miguel, and Frontino Norte properties along the
Segovia-Remedios Gold Belt in Colombia. Rio Pescado is comprised of four
mining concessions, the El Cinco property is comprised of one mining
concession, the San Miguel property is comprised of one mining concession
and one proposed mining concession, and the Frontino Norte property is
comprised of four mining concessions and one proposed mining concession.
Touchstone owns further options on the Santa Rosa Project, in the South
Bolivar area of Colombia, comprised of four proposed mining concessions
and one mining concession. With a philosophy of creating value by the
systematic exploration and development of Touchstone's existing assets as
well as the acquisition of suitable exploration and development mineral
projects, Touchstone's long-term intention is to build a significant gold
exploration and production company. 


    The Acquisition has been carried out through a Purchase Agreement (the
"Agreement"). As consideration for the Acquisition, Touchstone has issued
to the Vendor 4,089,762 common shares valued at C$750,000 and an
unsecured promissory note in the principal amount of C$250,000 (the

    The Note shall be payable upon written demand made at any time after 15
December, 2012. Commencing on 16 December, 2012 Touchstone shall pay
interest at the rate of 10% per annum, payable quarterly in arrears. If
the principal or any portion of it remains unpaid as of 15 March, 2013,
the Vendor shall have the right to convert unpaid principal and interest
into common shares of Touchstone equal to C$350,000 based on the 20 day
volume weighted average of the trading price preceding the date the
conversion notice is given.  

    Touchstone's Board of Directors has concluded that the Acquisition is in
the best interests of the company and has unanimously approved the terms
of the Acquisition.  

    This news release has been prepared under the supervision of, and
approved by, John Nicholson, P.Geo., B.Sc., who is a "qualified person"
as defined under National Instrument 43-101. Mr. Nicholson serves as the
Chief Geologist of Touchstone.

    Cautionary Note Regarding Forward-Looking Information 

    Certain information set forth in this press release contains
"forward-looking information" under applicable securities laws. Except
for statements of historical fact, certain information contained herein
constitutes forward-looking information which includes management's
assessment of Touchstone's future plans and operations and are based on
Touchstone's current internal expectations, estimates, projections,
assumptions and beliefs, which may prove to be incorrect. Some of the
forward-looking information may be identified by words such as "expects"
"anticipates", "believes", "projects", "plans", and similar expressions.
These statements are not guarantees of future performance and undue
reliance should not be placed on them. Such forward-looking information
may necessarily involve known and unknown risks and uncertainties, which
may cause Touchstone's actual performance and financial results in future
periods to differ materially from any projections of future performance
or results expressed or implied by such forward-looking information.
These risks and uncertainties include, but are not limited to:
liabilities inherent in mine development and production; geological,
mining and processing technical problems; Touchstone's inability to
obtain required mine licenses, mine permits and regulatory approvals
required in connection with mining and mineral processing operations;
competition for, among other things, capital, acquisitions of resources
and reserves, undeveloped lands and skilled personnel; incorrect
assessments of the value of acquisitions; changes in commodity prices and
exchange rates; currency and interest rate fluctuations; various events
which could disrupt exploration and development, including labour
stoppages and severe weather conditions; and management's ability to
anticipate and manage the foregoing factors and risks. There can be no
assurance that forward-looking information will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such statements. Touchstone undertakes no obligation to
update forward-looking information if circumstances or management's
estimates or opinions should change except as required by applicable
securities laws. The reader is cautioned not to place undue reliance on
forward-looking information.

Touchstone Gold Limited
David Wiley
Chief Executive Officer
+1 647 260 1247

Canaccord Genuity Limited
(Nominated Advisor and Joint Corporate Broker)
John Prior
+44 20 7523 8350

Canaccord Genuity Limited
(Nominated Advisor and Joint Corporate Broker)
Adam Miller
+44 20 7523 8350

Northland Capital Partners Limited
(Joint Corporate Broker)
Gavin Burnell
+44 20 7796 8800

Northland Capital Partners Limited
(Joint Corporate Broker)
Edward Hutton
+44 20 7796 8800

Northland Capital Partners Limited
(Joint Corporate Broker)
John-Henry Wicks
+44 20 7796 8800

College Group
Matthew Tyler
+44 20 7457 2020

College Group
Anca Spiridon
+44 20 7457 2020

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