Touchstone Gold Limited Update on Investee Company GOS Systems

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Touchstone Gold Limited

15 December 2014

Touchstone Gold Limited (AIM:TGL) ("Touchstone" or the "Company")

Update on Investee Company GOS Systems

London, 15 December 2014 - Touchstone, the AIM listed investment company is pleased to provide an update on GOS Systems ("GOS"), a UK security technology group recently acquired in accordance with Touchstone's investment policy.

Intelligence Gathering Contract Award

GOS has secured a contract with a national law enforcement agency in the Asia Pacific region to supply its cellular identity solutions.

This is an initial agreement that will be fulfilled in the months ahead, and may lead to additional sales with the customer. The contract is significant as a reference for other national law enforcement agencies that are currently in the business development pipeline.

Additionally, GOS has also received material orders from existing customers. It should be noted that an important business development initiative that has been successful in the past few weeks is an order for an equipment upgrade from a European law enforcement agency.

These orders give GOS' management further confidence that, following the restructuring of GOS Systems, not only has the existing customer base remained intact, but that business development and expansion plans can be implemented with confidence.

The aggregate value to GOS of these two sets of contracts for the calendar year of 2015 is approximately GBP300,000. A further update on the business plan and revenues beyond the next few months will be provided at the end of Q1 2015.

Franz Forrester, Chief Operating Officer of Touchstone commented: "The contracts announced today illustrate GOS' growing international customer base. GOS' intelligence gathering solution is designed for global law enforcement agencies, and the company continues to demonstrate itself as a leader in the provision of critical cellular monitoring and identification services. These Asian Pacific contracts are evidence of strong progress for GOS Systems."

He added, "It will not be our policy to announce contracts and business development that are considered to be in the ordinary course of activities. However, following the restructuring of GOS we believe it is important for investors of TGL to appreciate the importance and the potential of GOS in the medium to long term, and in the short term to understand that this is a business with existing clients, existing operations and existing revenues that was acquired by TGL, and that the process of going through administration has not affected the underlying business. Moreover we are also pleased that the stability afforded to GOS Systems now allows this talented team to take advantage of two key market circumstances. Firstly an enhanced appreciation on the part of customers for technology-led security and secondly a deepening and long term trend to secure services from European companies."

About GOS Systems

-- GOS' intelligence gathering solutions provide real-time monitoring of cellular, voice, SMS, and IMSI and IMEI metadata.

-- GOS' safe communications solution offers secure mobile telephony services to ensure privacy and security for customers.

   --     GOS is nearing completion of an upgrade to its cellular monitoring solution. 

For further information please contact:

 
 Touchstone Gold Limited          Tel: [phone] 
  Trevor Wells 
 
 finnCap Ltd                      Tel: [phone] 
  Matthew Robinson / Simon 
  Hicks 
 Peterhouse Corporate Finance     Tel: [phone] 
  Limited 
 Lucy Williams 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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