ASX Announcement

ASX: PGO, PGOO

22 January 2014

Closure of Renounceable Rights Issue

Primary Gold Limited (ASX: PGO) (Company) advises that the partially underwritten renounceable rights issue announced on 17 December 2013 (Rights Issue), closed on Friday 17 January 2014.
The Company advises that it received valid applications under the Rights Issue for 15,644,123 new shares and 7,822,083 new free attaching options from shareholders, leaving a shortfall of 32,540,148 new shares and 16,270,074 new free attaching options (Shortfall).
As detailed in the prospectus dated 16 December 2013, the Rights Issue is partially underwritten by Patersons Securities Limited (Patersons). In accordance with the terms of the underwriting agreement, Patersons will be required to subscribe for (or cause subscriptions for) the underwritten portion of the Shortfall, being 4,355,877 new shares and 2,177,939 new free attaching options.
In addition, Patersons has placed 4,000,000 new shares and 2,000,000 new free attaching options, to raise a further $200,000.
The total amount of funds raised by the Rights Issue will be $1,200,000 (before costs).
In accordance with the Rights Issue timetable, the Company expects that holding statements for the new shares and new options will be dispatched to shareholders on 29 January 2014, with trading of the new shares and new options expected to commence on the same day.
The Directors of the Company thank shareholders for their continued support.

--ENDS-- About Primary Gold:

Primary is an emerging Australian gold producer and explorer with multiple near term-production and advanced exploration assets located in the Northern Territory of Australia. Primary owns the Mt Bundy Gold Project, which comprises the Toms Gully processing facility (250,000 tpa) and substantial resources at the Toms Gully underground mine (310,000 resource ounces) and the Rustlers Roost
open pit (875,000 resource ounces).

For more information, please contact:

The Company has completed a Feasibility Study for the recommencement of gold production at Toms Gully. The Study outcomes support a low capital and low cost return to gold mining and production and include a maiden Probable Ore Reserve of 775,000 tonnes at
6.9g/t for 175,000 ounces of gold. Primary is assessing financing options for an immediate start to refurbishment to enable recommencing production in September quarter 2014.
Additionally, the Company has highly prospective tenure covering ~2,900 square kilometres in the northern Pine Creek region, which is substantially underexplored.
Clay Gordon Sarah Joseph
Managing Director, Primary Gold FTI Consulting
+61 8 9488 8874 +61 8 9485 8888 cgordon@primarygold.com.au sarah.joseph@fticonsulting.com

Primary Gold Mineral Resources & Ore Reserves

Competent Person's Statements:

Toms Gully

The information in this market announcement is extracted from the reports entitled July 2013 Toms Gully Resource Estimate, announced 3 July 2013 and Toms Gully Ore Reserve Estimate Summary Report, August 2013, announced 27 August 2013. Both reports are available to view on www.primarygold.com.au.
Primary Gold Limited confirms it is not aware of any new information or data that materially affects the information in the original market announcements relating to Toms Gully mineral resources and ore reserves, that all material assumptions and technical parameters underpinning the Toms Gully mineral resource estimate continue to apply and have not materially changed. The company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement.

Rustlers Roost

The information in this announcement that relates to the Rustlers Roost Mineral Resource is based on information reviewed and compiled by Mr Brian Fitzpatrick, who is a Member of The Australasian Institute of Mining and Metallurgy with Chartered Professional accreditation. Mr Fitzpatrick is a full- time employee of Cube Consulting Pty Ltd and has sufficient experience which is relevant to the styles of mineralisation and types of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Fitzpatrick consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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