Atlanta Gold Announces Issuance of US$600,000 Senior Secured Note and Amendment to Previously Issued Senior Secured Notes

TORONTO, May 12, 2015 /CNW/ - Atlanta Gold Inc. (TSXV: ATG; OTC Pink: ATLDF) announces that it has issued a Senior Secured Note in the principal amount of US$600,000 (the "Note") to Concept Capital Management Ltd. ("CCM").  The Note has the same terms and conditions as the Company's outstanding Senior Secured Notes (the "Senior Notes", and together with the Note, the "Notes") in the principal amount of US$4 million which were issued in August 2013.

The Company has also received the approval from a majority of holders of Senior Notes agreeing to extend the maturity date of the Notes by one year to August 31, 2018 and to amend the principal repayment dates so that the Notes will be repayable at the rate of 25%, 35% and 40% on August 31^st of 2016, 2017 and 2018, respectively. The Notes bear interest at 10% per annum and are secured by the limited recourse guarantee of the Company's subsidiary, Atlanta Gold Corporation ("AGC"), and by a first mortgage of AGC's interest in its Atlanta Project.

CCM also received an option, exercisable until August 31, 2018, to purchase an aggregate of 627 troy ounces of gold at US$1,100 per ounce (being 104.5 troy ounces for each US$100,000 principal amount Note), with the option vesting at the rate of 25%, 35% and 40% on August 31, 2016, 2017 and 2018, respectively. The Company's outstanding gold options previously issued with the Notes in August 2013 will be amended to have the same terms and conditions as the gold options being issued to CCM.

The US$600,000 received by the Company from the issuances of the Note, is sufficient for, among other things, its commitment to the Company's auditors, which will allow the auditors to complete audit as anticipated prior to the end of May.

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 kilometres) 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.

The Company is also focused on advancing its exploration and processing methods on the Neal Property, which is located approximately 15 miles from Boise, Idaho and comprises approximately 192 acres (0.78 square kilometres). The Neal Property's geology is similar to that of the Atlanta Project and it provides the Company with all-season access to further refine the processing equipment and procedures. In June 2014, Knife River assigned certain of its rights and obligations under its lease with the owner of the Neal Property to AGC. AGC staked an additional seven contiguous claims on public land that was open to mineral entry.

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 with respect to the completion of the filing of its annual financial statements and related documentation.  Such are based upon various assumptions and other factors that management believes to be reasonable, including that the Company will reach agreement with potential investors on a timely basis. 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 by the forward-looking statements.  Risks and uncertainties that may cause actual results to vary include the ability to conclude in a timely manner a financing on terms acceptable to the Company; fluctuations in the gold price and currency exchange rates; changes in general economic conditions and in the financial markets; as well as other risks and uncertainties which are more fully described in the Company's annual and interim management's discussion and analysis and other filings by the Company with the securities regulatory authorities, which are available under the Company's profile at www.sedar.com.  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 by the forward-looking statements and accordingly, readers should not place undue reliance on the forward-looking statements.  Readers are cautioned that the foregoing lists of risks, uncertainties, assumptions and other factors are not exhaustive.  The forward-looking statements contained herein 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.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

SOURCE Atlanta Gold Inc.

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