17 February 2010

Drilling confirms further anomalous gold mineralisation in breccia pipes at
Beinn Udlaidh, Scotland

- Wide intersections of highly anomalous gold values recorded in recent
drilling
- Best interval of 6.99 g/t gold and 40.24 g/t silver
- High gold grades in rock chips continue
- 8.9 g/t gold and 5.1 g/t silver in breccia pipe
- 16.7 g/t gold and >200 g/t silver in quartz breccia vein;
-Mineralisation potential of larger pipes estimated by Snowden between
200,000t to 2,000,000t each Drilling to resume in Q2 2010

Gold exploration company, Scotgold Resources Limited ("Scotgold" or the
"Company") (ASX: SGZ) has confirmed the mineralisation potential of breccia
pipes at its 100%-owned Beinn Udlaidh prospect in the Grampian Gold
Exploration Project, Scotland.

Five of seven short, small diameter (AQ) holes completed in recent rilling
have returned wide intersections of highly anomalous gold and silver
values, including:
* 14 metres averaging 0.26 g/t gold and 1.49 g/t silver over in Pipe BU 1
(best 0.5 m intersection 1.50 g/t gold and 8.38 g/t silver), and
* 16 metres averaging 0.28 g/t gold and 1.30 /t silver in Pipe BU 20, (best
0.5 m intersection 6.99 g/t gold and 40.24 g/t silver).

Rock chip sampling has also returned encouraging results:
* breccia pipe BU 13 (one of the largest breccia pipes identified) assayed
8.9g/t gold and 5.1 g/t silver; and
* the far east extension of the Beinn Udlaidh breccia vein assayed 16.7g/t
gold and >200g/t silver.

The mineralisation potential of the larger pipes is based on Snowden Mining
Industry Consultants Limiteds review of the breccia pipes at Beinn
Udlaidh, which estimated the Mineralisation potential of larger pipes to
be between 200,000t and 2,000,000t each.

Scotgolds Chief Executive Officer, Chris Sangster said, "This represents a
significant opportunity for Scotgold, and we will aim to determine the full
extent of the projects mineralisation as soon as possible.

"We believe these new exploration results highlight the potential for Beinn
Udlaidh to host large additional gold and silver resources within the 3,200
square kilometre Grampian Gold Project area" said Mr Sangster.

The next phase of exploration at the Beinn Udlaidh Project will involve
detailed field mapping, rock chip sampling and an expanded drill program.

To view the full ASX announcement please click here.
http://esp.gewru.com/download/files/12414/1084450/Scotgold%20confirms%20further%20anomalous%20gold%20mineralisation%20at%20Beinn.pdf

For further information please contact:
Chris Sangster
Chief Executive Officer
Scotgold Resources Limited
Tel: +44 (0) 77 25629509
E:
W: www.scotgoldresources.com

Karen Oswald
Account Manager, Investor Relations
Professional Public Relations
Tel: 08 9388 0944 / 0423 602 353
E:


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