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					                                                                                          925880
16 December 2010


Dear Option holder,

ATLANTIC GOLD NL OPTIONS (ATVOA) EXPIRING 31 JANUARY 2011

You are currently the holder of ATVO options as shown on the attached Notice of
Exercise of Options. Each option entitles you to one fully paid ordinary share in Atlantic
Gold NL upon payment of the exercise price of 8 cents per share.

These options will expire on 31 January 2011 and unless exercised prior to that date any
rights or obligations which may have attached to the options will cease on that day.
Quotation of the options (ASX code ATVOA) on the Australian Stock Exchange (ASX)
will end at close of trading on Friday 21 January 2011. In order to exercise your options,
you will need to complete a Notice of Exercise of Options and forward it, together with
your payment (in Australian currency made payable to Atlantic Gold NL – Options), to
Atlantic Gold NL at the address shown below. Atlantic Gold will need to receive your
Notice of Exercise of Options and payment by close of business on Monday 31 January
2011. Atlantic Gold will then apply for quotation of the shares issued and a Holding
Statement will be forwarded to you.

Market price of fully paid shares

ATVOA options are convertible into fully paid ordinary shares. The highest price realised
for a fully paid ordinary share in Atlantic Gold NL in the last three months was 7.8 cents
on 9 November 2010 and the lowest was 4.6 cents on 22 September 2010. The latest
available market price was 5.1 cents on 15 December 2010.

Exercise and payment

Due date for exercise of the options is Monday 31 January 2011.

Payment by cheque
Please return your completed and signed Notice of Exercise of Options together with
your cheque to:
             Atlantic Gold NL
             Suite 701, 220 Pacific Highway
             Crows Nest NSW 2065
Payment should be made in Australian currency by cheque payable to “Atlantic Gold NL
– Options” and marked “not negotiable”. Receipts for payments will not be issued.




Suite 701                        t (612) 9929 6633             Atlantic Gold NL
220 Pacific Highway              f (612) 9929 9366             ABN 82 062 091 909     www.atlanticgold.com.au
Crows Nest NSW 2065
Australia

G:\ATV\ATVOA exp 310111\Expiry mailout\101210 Letter to option holders.doc 15/12/10
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Payment by direct credit
Payment can be made electronically by transfer of funds in Australian currency on or
before the due date to the following account:
       Atlantic Gold NL – Options
       BSB: 633-000
       Account number: 141 801 910
Please include as the reference on your transfer the “Option reference number” shown
on the Notice of Exercise of Options. Your completed and signed Notice of Exercise of
Options, with the date of your funds transfer noted on the form, should be returned to
Atlantic Gold at the address shown above or faxed to 02-9929 9366.

Market price of partly paid shares

Under the ASX Listing Rules the Company is also required to advise market price
information in respect of partly paid shares (paid to 9 cents with 11 cents remaining to
be paid). Only one trade of partly paid ordinary shares has occurred in the last three
months, at 3 cents on 4 October 2010. The latest available market price was 3 cents on
15 December 2010.

Questions

Should you have any questions please contact Julie Fidler or Graeme Hogan on
02 9929 6633. We also invite you to visit the Company’s website at
www.atlanticgold.com.au for regular Company updates.

The above information is required to be sent to option holders under ASX Listing Rules
where listed options are close to expiry.

Yours faithfully




W R BUCKNELL
Director

enc.
                                                                                                                                          Registered office:
                                                                                                                                          Atlantic Gold NL
                                                                                                                                          Suite 701
                                                                                                                                          220 Pacific Highway
ABN 82 062 091 909                                                                                                                        Crows Nest NSW 2065
                                                                                                                                          Enquiries:
                                                                                                                                          Phone: 02-9929 6633
NOTICE OF EXERCISE OF ATVOA OPTIONS                                                                                                       Fax:       02-9929 9366
EXPIRING 31 JANUARY 2011                                                                                                                  www.atlanticgold.com.au
                                                                                                                                          enquiries@atlanticgold.com.au




          «REG_ADDRESS_LINE_1»                                                                                                            OPTION
          «REG_ADDRESS_LINE_2»                                                                                                            REFERENCE
          «REG_ADDRESS_LINE_3»
          «REG_ADDRESS_LINE_4»
                                                                                                                                          NUMBER
          «REG_ADDRESS_LINE_5»                                                                                                            «OP_REF»

                                                                                                        TERMS AND CONDITIONS OF OPTIONS
I/We, being the registered holder of «ATVOA» options                                                    1. The options are subject to the terms of the Offer made under
                                                                                                            the Prospectus dated 15 April 2009.
HEREBY EXERCISE:
                                                                                                        2. The options will expire on 31 January 2011.
      «ATVOA» options                                                                                   3. There is no obligation to exercise the options.
                                                                                                        4. The exercise price or number of options issued may be
       ................................................................. options                            changed in accordance with Listing Rule 6.22 or any
to subscribe for fully paid ordinary shares in the capital                                                  amendment of that Rule from time to time in respect of any
of the Company at 8 cents per share on the Terms and                                                        pro rata rights issue or bonus issue.
Conditions attached.                                                                                    5. In the event of any reconstruction (including a consolidation,
                                                                                                            sub-division, reduction or return) of the issued capital of
                                                                                                            Atlantic Gold NL, the rights of the option holder will be
In respect of the options the subject of this notice, I/we
                                                                                                            changed to the extent necessary to comply with the Listing
enclose application money of
                                                                                                            Rules applying to a reorganisation of capital at the time of
      «TOTAL»                                                                                               the reorganisation.
                                                                                                        6. The option holder has no right to participate in a new issue
      $ .......................................... at 8 cents per share.                                    of shares without first exercising the option.
I/we authorise you to register me/us as the holder of the                                               7. The exercise price of each option is 8 cents.
shares to be allotted to me/us and I/we agree to accept                                                 8. To exercise an option, the holder must complete and execute
such shares subject to the Constitution of the Company.                                                     a Notice of Exercise of Options in the form attached, and
                                                                                                            must lodge the completed notice and payment of the
............................................................     ...................................
                                                                                                            exercise price with the Company Secretary at the Company’s
Signature                                                        Date
                                                                                                            registered office at any time prior to the expiry date.
.....................................................................................................
Print name and office (see Note 9)                                                                      9. (a) If your shares are held in joint names all shareholders
                                                                                                                must sign the form.
............................................................     ...................................        (b) If you are signing as an Attorney then the Power of
Signature                                                        Date                                           Attorney must have been noted by Atlantic Gold NL or a
.....................................................................................................           certified copy must accompany this form.
Print name and office (see Note 9)
                                                                                                            (c) Only duly authorised officers can sign on behalf of a
                                                                                                                company. Please sign in the space provided stating the
Please advise how we may contact you if we have any queries:
                                                                                                                office held by the signatory i.e. Director and
Phone (business hours): .............................................................
                                                                                                                Director/Company Secretary or the Sole Director.
                                                                                                        10. Shares issued on exercise of the options will rank equally in
email: ...........................................................................................
                                                                                                            all respects with all other fully paid shares on issue.
.....................................................................................................   11. The Company will apply for official quotation by the ASX of
                                                                                                            the shares issued upon exercise of the options within 3
                                                                                                            business days of allotment of the shares.
COMPANY UPDATE


As 2010 comes to a close I thought it worthwhile to provide an update following
my most recent trip to Nova Scotia. It is the Directors’ view that significant
progress has been made in these last five months since the release of the
Definitive Feasibility Study in July 2010. The following notes the most significant
items that I wish to bring to your attention:-

Recent placements to Au Mining Limited and major shareholder

You will be aware that in recent months we have made placements to Au Mining
and a major cornerstone shareholder. These funds ($3.4 million) provide working
capital to finalise the acquisition of land for the Touquoy Gold Project, pursue
and evaluate available second hand plant options and ongoing exploration and
administration of the group.

Land titles

The issue of securing surface land titles for the Touquoy Gold Project is a priority.
On my most recent trip I was able to finalise the purchase of several more of the
handful of outstanding titles. It is my expectation that these acquisitions will
most likely be completed by the end of March 2011.

The company has commenced discussions with the Government of Nova Scotia
with respect to land for which the landowner cannot be defined or identified.
These will continue into the March quarter 2011.

Second-hand plant options

The Company has become aware of newly available second hand plant that may
be suitable for the Touquoy Gold Project. This plant will be evaluated during the
March 2011 quarter. If suitable second plant can be secured there may be savings
of several tens of millions of dollars in the forecast capital cost of $123 million
reported in the Definitive Feasibility Study released in July this year.

Funding options

The Company has had discussions with a number of debt providers and indicative
non-binding offers have been received for consideration and evaluation. This will
be done over the coming months. The Company is vigorously seeking
appropriate equity funding through a variety of avenues.




Suite 701             t (612) 9929 6633   Atlantic Gold NL
220 Pacific Highway   f (612) 9929 9366   ABN 82 062 091 909       www.atlanticgold.com.au
Crows Nest NSW 2065
Australia
                                                                            Page 2



Additional exploration areas

Based on our intimate knowledge of the geological and geophysical
characteristics of disseminated gold mineralisation in the Nova Scotia goldfields,
and following the positive Touquoy Definitive Feasibility Study, the exploration
land package has been expanded to more that 1200km2 of prospective ground
previously unexplored for this style of gold mineralisation.

The Directors are excited about 2011, with the Company’s efforts focused on
achieving the following goals:

   Touquoy Gold Project

   •   Secure all required surface titles

   •   Obtain grant of Industrial Approval and Mining Lease

   •   Secure appropriate second hand plant to reduce initial capital cost and
       lead-time to start-up

   •   Finalise debt and equity raisings

   •   Commence project development

   Cochrane Hill Gold Project

   •   Complete resource delineation and continue evaluation and exploration
       of this Project

   Regional Exploration

   •   Undertake early stage exploration of all existing and newly acquired
       tenements to identify those worthy of further advanced exploration and
       resource development.

With best wishes for the Christmas season,




Wally Bucknell
Executive Director

16 December 2010

				
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