CGA Mining Limited and Ratel Gold Limited announce closing of the spin off of
African assets and initial public offering

/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR RELEASE TO US NEWS WIRE SERVICES/

PERTH, Australia, Aug. 6 /CNW/ - CGA Mining Limited (TSX: CGA, ASX:CGX) ("CGA") and Ratel Gold Limited (TSX: RTL) ("Ratel" or the "Company") are pleased to announce that the previously announced initial public offering of common shares (the "Offering") in Ratel has closed successfully. Pursuant to the Offering, Ratel today issued 70,000,000 common shares at a price of C$0.20 per common share, for aggregate gross proceeds of C$14 million. Haywood Securities Inc. acted as agent for the Offering pursuant to an agency agreement.

The common shares will begin trading today on the Toronto Stock Exchange under the symbol "RTL". The Company will be using the net proceeds of the Offering to fund exploration and feasibility activities at the Segilola Gold Project and the Mkushi Copper Project, plus general, administrative and working capital purposes.

"We are pleased with the overwhelming support shown by CGA shareholders for the spin off of the African assets and believe Ratel Gold Limited, a new dedicated African focussed resources company will be well received by the market" said Michael Carrick, Chief Executive Officer of CGA and Director of Ratel.

No securities regulatory authority has either approved or disapproved of the contents of this news release. The securities being offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the ''U.S. Securities Act''), or any state securities laws, and may not be offered or sold in the United States, or to, or for the account or benefit of, a "U.S. person" (as defined in Regulation S of the U.S. Securities Act) unless pursuant to an exemption therefrom. This press release is for information purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities of the Company in any jurisdiction.

ABOUT RATEL GOLD LIMITED

Ratel Gold Limited is listed on the Toronto Stock Exchange and is a mining exploration company focused on developing gold and copper deposits in Africa. The Company is earning a 51% interest in the Segilola Gold Project in Nigeria, the largest undeveloped gold resource identified in Nigeria and holds a 51% interest in the Mkushi Copper Project in Zambia. At the Segilola Gold Project, Ratel has identified a maiden NI 43-101 compliant indicated resource of 520,000 ounces of gold contained in 3,658,000 tonnes at a grade of 4.4g/t and an inferred resource of 97,600 ounces of gold contained in 790,200 tonnes at a grade of 3.8 g/t.

Ratel has an experienced management team, and is further supported by the management team of CGA Mining Limited, a 20% shareholder in the Company. Ratel will be focussed on further developing its current resource interests and identifying new opportunities in the African region to both grow its reserve and resource base and enhance the Company's ability to move to a producer status as a priority.

For further information about the Company, please refer to the Company's filings on SEDAR (www.sedar.com).

    
    NATIONAL INSTRUMENT 43-101 COMPLIANCE
    -------------------------------------
    

Mr Geoff.G.Jones, F.Aus.I.M.M.CP Mng, CGA's Consulting Engineer, is acting as the Qualified Person in compliance with NI 43-101 and JORC reporting requirements with respect to this announcement. He has prepared and or supervised the preparation of the scientific or technical information in this announcement and confirms compliance with NI43-101 and JORC requirements.

Mr. Alfred John Gillman of Odessa Resources Pty Ltd, an independent qualified person experienced in the style of mineralisation at the Segilola Gold Project, has completed the resource statement for the Segilola Project as referred to in this announcement, including verification of the sampling, analytical and test data underlying the estimate. Verification also included a site visit, database validation of historical drill results and a review of sampling and assaying protocols. The qualified person was satisfied with all of the protocols used during the drilling, sampling and in the Segilola resource estimate compilation and computation.

    
    CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS
    ----------------------------------------------------
    

This announcement includes certain "forward-looking statements" within the meaning of Canadian securities legislation. All statements, other than statements of historical fact, included herein, without limitation, the use of net proceeds are forward-looking statements. Forward-looking statements involve various risks and uncertainties and are based on certain factors and assumptions. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations include uncertainties related to fluctuations in gold and other commodity prices and currency exchange rates; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; uncertainty of estimates of capital and operating costs, recovery rates, production estimates and estimated economic return; the need for cooperation of government agencies in the development of the Company's mineral projects; the need to obtain additional financing to develop the Company's mineral projects; the possibility of delay in development programs or in construction projects and uncertainty of meeting anticipated program milestones for the Company's mineral projects; and other risks and uncertainties disclosed under the heading "Risk Factors" in the prospectus of the Company dated June 29, 2010 filed with the Canadian securities regulatory authorities on the SEDAR website at www.sedar.com.

SOURCE St. Augustine Gold and Copper Limited

For further information: For further information: Australian Contact, Chief Executive Officer - Geoff Jones, Tel: +61 8 9263 4000, Fax: +61 8 9263 4020, Email: geoffgjones@ratelgold.com; US Contact, Independent Chairman - Mark Savage, Tel: +1 505 344 2822, Fax: +1 505 344 2922, Email: marksavage@comcast.net

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St. Augustine Gold and Copper Limited

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