ATW Gold Corp.
TSX VENTURE : ATW

ATW Gold Corp.

October 20, 2009 09:00 ET

ATW Settles Red Kite Burnakura Gold Loan

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 20, 2009) - ATW Gold Corp. (TSX VENTURE:ATW) (the "Company") ("ATW") - The Company has entered into a formal written letter agreement (the "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") have to Red Kite.

On June 1, 2009, the Company entered into a number of security, guarantee, term note, loan and other agreements and documents (the "Loan Agreements") under which Red Kite agreed to loan funds to the Company in exchange for repayment of the funds and in exchange for acquiring options to market future production from the Company's Burnakura Mine in Western Australia.

The Company recently concluded that it would place the Burnakura Mine on care and maintenance and cease production from it.

The terms of the Letter Agreement call for the payment by the Company to Red Kite of US$3,700,000 (the "Final Payment") on or before October 23, 2009. The terms of the Letter Agreement also call for Red Kite to retain approximately US$1,300,000 in cash and gold assets it now holds which would otherwise have been paid to the Company under the terms of the parties' loan agreements and gold marketing agreements.

Upon the Company making the Final Payment, all agreements between the Company and Red Kite will be terminated. As well, Red Kite, the Company and ATW Australia will execute full and final mutual releases.

As a result of the termination of the gold marketing agreement with Red Kite, the Company will retain and market on its own any production from the Burnakura Mine until it is placed on care and maintenance. The Company is uncertain as to what, if any, proceeds will be realized from this.

The Letter Agreement further terminates all Red Kite security interests in the Company's Australian assets and terminates the Company's guarantee of the indebtedness of ATW Australia.

The Company is negotiating to secure the US$3,500,000 necessary for it to make the Final Payment.

Brent Butler, Chief Executive Officer and President, commented: "We are pleased to retire the gold loan associated with Burnakura. This now allows ATW to explore a number of strategic options for Burnakura that are currently under consideration. ATW will now focus on its Gullewa Mine Project. The latest drill program on Gullewa has commenced, targeting the 400m southern extension to the Deflector block model defined from the June Phase One drill program."

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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