Atlanta Gold Inc. and Niogold Mining Corp. option Abitibi Quebec gold properties from Breakwater Resources


    TORONTO, Sept. 30 /CNW/ - Atlanta Gold Inc. (TSX: ATG) and Niogold Mining
Corp. (TSXV: NOX) jointly announce that they have acquired an option from
Breakwater Resources Ltd. to acquire a minimum 60% and a maximum 80% interest
in certain mining claims located in the Abitibi region of Quebec. Atlanta had
in 2003 acquired a five-year option from Breakwater to acquire these interests
in the Normar, Mouskor, Malartic H and Malartic H Annex claims exercisable by
incurring expenditures of $3.5 million on the properties and making payments
to Breakwater totaling $125,000. To date, Atlanta has incurred approximately
$2.3 million in expenditures and has paid Breakwater $100,000.
    Under the terms of the new agreement, the term of the option has been
extended to September 1, 2009. Atlanta will issue 41,806 common shares to
Breakwater, Niogold has paid $25,000 to Breakwater and Niogold has agreed to
incur up to $1.2 million in expenditures on the Malartic claims by
September 1, 2009 to exercise the option. Upon exercise, Atlanta will acquire
a 60% interest in the Normar and Mouskor claims and Niogold will acquire a 60%
interest in the Malartic claims. Upon exercise of the option, Atlanta and
Breakwater with respect to Normar and Mouskor, and Niogold and Breakwater,
with respect to Malartic, will form joint ventures. Under the terms of each of
the joint venture agreements, if Breakwater's interest in a venture is diluted
to 10% or less, its interest therein will be converted to a 1.5% net smelter
return royalty, which may be purchased for $750,000.
    Following exercise of the option and prior to delivery of a bankable
feasibility study, Atlanta and Niogold may increase their respective interests
in the properties by an additional 10% upon Niogold making a $100,000 payment
to Breakwater. Within 6 months following delivery of a bankable feasibility
study on either property, Niogold and Atlanta may elect to increase their
respective interests by a further 10% by making a further payment to
Breakwater totaling $500,000. Provided that each of Niogold and Atlanta
contribute equally to the $500,000 payment, then Atlanta and Niogold will each
be entitled to a 2% net smelter return royalty on the other's property, of
which one-half may be purchased for $1 million and the balance may be
purchased for an additional $1 million.
    Bill Baird, President and CEO of Atlanta stated: "We are very pleased to
have reached this agreement which will enable Atlanta to continue to
participate in the prospective Abitibi region while focusing on development of
our advanced Atlanta gold project in Idaho."

    About Atlanta Gold Inc.

    Atlanta Gold Inc. (TSX: ATG) holds through its 100% owned subsidiary,
Atlanta Gold Corporation, a 100% interest in the Atlanta property which
comprises approximately 2,081 acres and is located 65 miles 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 and on acquiring, exploring and developing other
attractive gold projects.

    About Niogold Mining Corp.

    NioGold Mining Corp. is a junior exploration company primarily focused on
gold. Niogold's main properties are the Camflo West and the Marban Block
located in the Malartic and Val-d'Or Mining Camps, Abitibi, Quebec. The camps
have produced over 27 million ounces of gold and presently encompass several
active advanced exploration and mine development projects such as Canadian
Malartic (Osisko Exploration), Kiena (Wesdome), Midway (Northern Star Mining),
Goldex (Agnico-Eagle) and Lac Herbin (Alexis Minerals). The Marban Block
encompasses three former gold producers, namely the Norlartic, Kierens (First
Canadian), and Marban mines that collectively produced over 590,000 ounces of

    Forward-Looking Information

    This news release contains forward-looking information and
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", "will", "should", "anticipate",
"plan", "expect", "believe", "estimate" and similar terminology to identify
forward looking information and statements. 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. Forward
looking information and 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 information
and 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 speculative nature of mineral
exploration, development and mining (including with respect to size, grade and
recoverability of mineral reserves and resources); operational and technical
difficulties; risks and hazards associated with the business of mineral
exploration, development and mining, including environmental hazards;
government action or delays in the receipt of governmental approvals, permits
and licenses; changes in resource prices and fluctuations in currency exchange
rates; the availability of financing and changes in general economic
conditions or conditions in the financial markets. Readers are cautioned that
the foregoing lists of risks, uncertainties 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 information or 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:

For further information: Atlanta Gold Inc., Bill Baird, President and
CEO, Telephone: (416) 777-0013, Fax: (416) 777-0014, E-mail:; Niogold Mining Corp., Michael A. Iverson, President and
CEO, Telephone: (604) 856-9887, E-mail:

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