Antioquia Gold Inc.

Antioquia Gold Inc.

January 21, 2011 16:11 ET

Antioquia Gold Announces a $7.8 Million Non-Brokered Private Placement

CALGARY, ALBERTA--(Marketwire - Jan. 21, 2011) - Antioquia Gold Inc. (TSX VENTURE:AGD) ("Antioquia") is pleased to announce that it has agreed to the terms of a non-brokered private placement ("Private Placement") for up to 19,455,495 common shares of Antioquia at a price of Cdn$0.40 per common share for gross proceeds to Antioquia of up to Cdn$7,782,198. The proceeds of the private placement will be used primarily to accelerate exploration efforts at Antioquia's principal asset the Cisneros Project located 70 kilometres northeast of Medéllin in the Department of Antioquia, Colombia.

The Private Placement will be subscribed by Desafio Minero S.A.C. ("Desafio") which previously completed a non-brokered offering and entered into a Strategic Alliance Agreement with Antioquia on August 13, 2010. Closing of the Private Placement is expected to occur on or before January 31, 2011, and is subject to acceptance by applicable securities regulatory authorities including the TSX Venture Exchange.

Desafio is the exploration arm of Consorcio Minero Horizonte S.A. ("Horizonte"), the fifth largest gold producer and second largest underground gold producer in Peru, producing approximately 200,000 ounces of gold in 2010. Horizonte and Desafio are both privately held and controlled by the Navarro-Grau Group ("Group"). In addition to its producing mines, the Group has a strong pipeline of projects at the exploration and development stage, and is actively involved in expanding its operational footprint and developing new mining opportunities in Peru and other parts of Latin America.

The funds from the Private Placement will be used to aggressively accelerate the current surface exploration program to expand the drill targets and potential gold bearing structures. Development of two underground tunnels will also be initiated to facilitate further drilling on the Guayabito and La Manuela structures and provide data for grade control and resource estimation and to facilitate bulk samples for future metallurgical test work. 

Richard Thibault, President and CEO of Antioquia, commented, "The investment by Desafio provides Antioquia with the funds needed to accelerate the exploration program at the Cisneros Project. We are also fortunate to be able to draw on Horizonte's 32 years of experience in the exploration, development and operation of this type of underground narrow-vein deposit. This experience will become increasingly important as the Cisneros project passes onto development and production."

Felix Navarro-Grau Hurtado, a Board Director of Desafio, commented, "We believe that this participation demonstrates a further endorsement of Antioquia and the Cisneros Project by Desafio; and our desire to strengthen our relationship and cooperation to continue advancing the exploration programs."

Antioquia Gold Inc.

Antioquia is a precious metal exploration company with projects in Colombia since 2007. Antioquia's principal asset, which is being actively explored, is its Cisneros Project, located 70 km northeast of Medéllin in the Department of Antioquia, Colombia. At the Cisneros Project the Company has drilled over 13,300 metres, conducted extensive geophysical programs and is well versed in the understanding of the deposit type and the project's path to production. The Cisneros Project consists of 5,630 hectares and forms the nucleus of the Company's 37,500-hectare land package located throughout Colombia.

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Cautionary Note Regarding Forward-Looking Statements

Certain statements contained herein constitute forward-looking statements, including statements concerning the anticipated closing date and use of proceeds. We believe the expectations reflected in those forward-looking statements are reasonable but no assurance can be given that the expectations will prove to be correct and such forward-looking statements included herein should not be unduly relied upon. The forward-looking statements included in this press release are made as of the date of this press release and Antioquia disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation.

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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