ATW Gold Corp.
TSX VENTURE : ATW

ATW Gold Corp.

October 26, 2009 15:20 ET

ATW Reaches Settlement with Red Kite on Burnakura Gold Loan

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 26, 2009) - ATW Gold Corp. (TSX VENTURE:ATW) (the "Company") ("ATW") - On October 20, 2009, the Company announced it had entered into a formal written letter agreement (the "First Letter Agreement") with Red Kite Explorer Fund Limited ("Red Kite") to settle all outstanding debts, liabilities and obligations the Company and its Australian subsidiary, ATW Gold Corp. Australia PTY Limited ("ATW Australia") had to Red Kite under various agreements (the "Loan Agreements") the Company and Red Kite entered into on June 1, 2009.

The Loan Agreements are more fully described in the Company's October 20, 2009 news release and in past news releases.

The Company and Red Kite have negotiated an amendment to the First Letter Agreement (the "New Settlement").

Under the terms of the New Settlement the Company will pay US$2million to Red Kite immediately and issue a US$1,200,000 face value promissory note (the "Note") due on the earlier of six (6) months from closing or such time as the Company disposes of its Burnakura Mine Property. The Note is to be secured by a general security interest in the Company's assets.

In addition, the Company is to issue a total of 6,000,000 of its common shares (the "Shares") to Red Kite and Red Kite is to retain approximately US$1,300,000 of gold and cash that it holds which would otherwise have been forwarded to the Company (or ATW Australia) under the terms of the Loan Agreements.

Upon closing of the transactions contemplated by the New Settlement, all debts, liabilities and obligations of the Company and ATW Australia to Red Kite will be terminated (save and except that the Note will be outstanding).

In particular, the Company's obligation to deliver to Red Kite approximately 8550 ounces of gold under the terms of the Loan Agreements, is terminated.

In addition, upon closing Red Kite will release all security and mortgages it holds over ATW Australia's assets in Australia including the Burnakura Mine and its plant and equipment.

The New Settlement, the issuance of the 6,000,000 Shares and the issuance of the Note are subject to their approval by the TSX-Venture Exchange.

Brent Butler, Chief Executive Officer and President, commented: "We are pleased to settle the gold loan obligation with Red Kite. We are now free to maximize to value of the Burnakura asset to the benefit of our shareholders. It is contemplated that by selling the Burnakura asset, the Company will be able to recoup a substantial portion of our investment."

To find out more about ATW Gold Corp. please contact at 604-662-8184 or email investor@atwgold.com. You may also visit our website at www.atwgold.com.

ATW Gold Corp.

Brent Butler, President & CEO

"This news release may contain forward–looking statements. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements."

"Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."

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