Sovereign Gold Company Limited Initial Public Offering (IPO) for Mount Adrah

Sydney, Australia - Sovereign Gold Limited (Sovereign Gold) (ASX:SOC) is proposing to spin-out Mount Adrah Gold Limited (formerly Gossan Hill Gold Limited), (Mount Adrah), a 72% owned subsidiary Sovereign Gold. Mount Adrah Gold has a portfolio of highly prospective gold projects in New South Wales, Australia at the Mount Adrah Gold Project.

Exploration aims to locate a major gold deposit, with a principal focus on the Mount Adrah Gold area where the JORC Code compliant Mineral Resource estimate is 770,000 ounces of gold (440,000 oz Indicated; 330,000 oz Inferred), within a total Mineral Resource estimate of 20.5 Mt at 1.1 g/t gold, at various cut-off grades.

"The spin-out will provide dedicated resources and focus for the accelerated exploration and development of the Mount Adrah Gold Project," Mount Adrah CEO, Julian Malnic said.


Initial Public Offering

The Mount Adrah IPO is for 10,000,000 Shares at an issue price of $0.20 per Share to raise a minimum of $2,000,000; additionally the Company may accept over-subscriptions for up to 5,000,000 Shares to raise up to a further $1,000,000.

Sovereign Gold currently holds 41,825,000 shares in Mount Adrah.

All Sovereign Gold shareholders holding at least a Marketable Parcel of Sovereign Gold shares at the Record Date (yet to be set) will be eligible to apply for shares in a priority offer, with a guaranteed allocation of shares in Mount Adrah.


Julian Malnic Appointed Managing Director

Julian Malnic, a director of Sovereign Gold has been appointed Managing Director of Mount Adrah.

Julian Malnic is a professional geologist and company builder whose career spans a wide range of industry activity including exploration (specialising in gold), mine assessment, corporate management and development, and industry media.

In 1995, Julian founded Nautilus Minerals (listed on the Toronto and London exchanges) the world's first company to be granted exploration licences to newly discovered, high-grade seafloor massive sulphide deposits.

Julian subsequently founded Direct Nickel (DNi) in 2005 after having identified the potential of precursor technologies for the Direct Nickel Process which it has successfully developed for treating nickel laterites.

He worked as Executive Chairman of DNi until Sept 2012 and led the DNi team in developing the DNi Process. The company has successfully tested a wide array of ore types, confirmed the process's efficient and wide spectrum capabilities, and forged strong technical and financial partnerships with Teck Resources Ltd., PT Antam, and the CSIRO.

The Offer of the securities will be made in a prospectus to be lodged with ASIC during April 2014. To subscribe for Shares, applicants will need to complete the application form that is in, or accompanies, the prospectus.

In deciding whether to acquire the Shares, applicants should read the prospectus carefully, and if necessary seek their own taxation and investment advice.

The prospectus, including the application form, once lodged with the ASIC, will be able to be viewed and downloaded at www.adrah.com.au.


About Sovereign Gold Company Limited:

Sovereign Gold Company Ltd. (ASX:SOC) is an Australian-based gold exploration and development company that holds a highly prospective tenement package, for Intrusion-Related Gold Systems (IRGS), in New South Wales, Australia. Sovereign Gold holds 11 Exploration Licences covering over 3,240km2 near Armidale in NSW, including the historic Rocky River-Uralla Goldfields. Sovereign Gold's aggressive exploration program in several of these licence areas is funded via a joint venture (at the tenement level) with Jiangsu Geology & Engineering Co Ltd (SUGEC), a major Chinese State-owned geology enterprise. The other area of focus is the Mt. Adrah Project, approximately 50km southeast of the regional NSW centre of Wagga Wagga and 23km northwest of the historic mining district of Adelong, via an 87% interest in unlisted Gossan Hill Gold Limited. This area contains the recently discovered, world-class, Hobbs IRGS deposit which is currently under evaluation.



Contact:

Sovereign Gold Company Ltd.
Henry Kinstlinger, Investor Relations
Telephone: +61 2 9251 7177