FARREL WELL

Atlas Gold is raising A$6 million for exploration at its Pardoo Iron Ore Project and the Farrel Well Gold Project. LinQ Corporate Pty Ltd will act as an agent to place up to 27.3 million shares and one for two attaching options at a price of 22 cents per share. The options are exercisable at a price of 30 cents per share for a period of three years from the closing date.

6 RAB drill holes for 334 metres and 2 RC drill holes for a total 123 metres were completed (results reported 27th July 2005). Surface sampling continued with a total of 2,377 soil samples and 148 rock chip samples being collected. Significant results include highly anomalous soils results from the Tudor and Singers prospects that returned peak values of 844 ppb Au and 728 ppb Au respectively. Sampling also extended known anomalism at the Fordor Prospect to approximately 650 m in strike length. Detailed geological mapping at 1:2000 scale was completed over several prospective areas. Mapping has highlighted the structural complexity of the project area. From this and all previous work the company has now formulated a structural model for mineralisation at the project. It is anticipated that this will greatly assist in predicting the location of economic ore systems as well as gaining an improved understanding of known prospects

Two new gold discoveries at Graeme and Lukangus. Results from Graeme include DHRC0230, 4 metres at 5.95 g/t Au from 26 metres, including 1 metre at 13.5 g/t Au from 28 metres and 4 metres at 2.04 g/t Au from 37 metres. drill results from Lukangus Hill include LKRB002, 1 metre at 1.25 g/t Au from 8 metres, LKRB003, 1 metre at 1.5 g/t Au from 15 metres. Further anomalous drill intersections at the North East Zone which include 1 metre at 7.44 g/t Au from 4 metres, 1 metre at 4.04 g/t Au from 23 metres, and 2 metres at 2.13 g/t Au from 32 metres. First pass drill testing of Morgan have produced 1 metre at 14.4 g/t Au from 38 metres. New Manganese trend identified at Edsel (assaying 51% Mn) With initial observations indicating manganese occurrences over some 3km of strike. At the Impala prospect, drilling did produce the anomalous result of; IMRB004, 1 m at 1.77 g/t Au from 31 m. Follow up moving loop ground EM work completed over the prospect (subsequent to year end) has identified a subtle but continuous conductor of some 500 m in length. 3D modeling of the target is currently being completed with the intention of generating drill targets for 2005/2006.