Sovereign Gold Company Limited Bid Reaches 96% of Mount Adrah Gold

Sydney, Australia - Hudson Resources Limited has accepted Sovereign Gold Company Ltd.'s (ASX:SOC) (Sovereign Gold) offer for its Mount Adrah shares and options bringing Sovereign Gold's interest in Mount Adrah Gold Ltd. (Mount Adrah) to 95.9%.

Sovereign Gold's offer is for the full acquisition of Mount Adrah Gold Ltd. (Mount Adrah).

Sovereign Gold is offering Mount Adrah Shareholders four Sovereign Gold shares (at 4.8 cents on offer date) for each Mount Adrah share including options held by them.

Offer value is 19.2 cents per Mount Adrah share including options.

The Offer is subject to obtaining all necessary shareholder, regulatory and statutory approvals.

Consideration for the total acquisition would be the issue of up to 64.7 million Sovereign Gold shares with a cash value of $3.1 million.


Share Purchase Plan

Sovereign Gold implemented a Share Purchase Plan on 17 June 2014 (SPP). The SPP is available to all Eligible Shareholders (See Note 1).

The SPP price will be the lower of 4 cents or a 10% discount to the volume-weighted average price of Sovereign Gold shares traded on the Australian Securities Exchange over the 5 trading days up to and including the day on which the SPP is scheduled to close (23 July 2014), rounded down to the nearest one tenth of one cent.

The maximum price that Eligible Shareholders will pay is 4 cents per New Share.

Shareholders can purchase shares totalling up to $15,000.

The SPP is open until 5:00pm on 23 July 2014.

Note 1: Eligible shareholders are those shareholders registered at 5:00 pm (AEST) on 16 June 2014.


About Sovereign Gold Company Limited:

Sovereign Gold Co 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