Randsburg International Gold Corp.

August 11, 2011 10:11 ET

Randsburg Signs Memorandum of Understanding on Flett Project

TORONTO, ONTARIO--(Marketwire - Aug. 11, 2011) - Randsburg International Gold Corporation (TSX VENTURE:RGZ) announced today that it has signed a Memorandum of Understanding ("MOU") with respect to its Flett Project located in Flett Township in Northern Ontario. Randsburg holds a 100% interest, subject to a 3% NSR, in 10 claims located in Flett Township covering approximately 5,440 acres contiguous to the Company's 20% owned Titan Iron-Titanium Vanadium Project. Flett Township is located 120 kilometres northeast of Sudbury, Ontario and 50 kilometres north of the City of North Bay. The Flett project is prospective for iron, titanium, nickel and platinum group metals (PGM).

The MOU was signed with Gloss Gold Investments Limited ("Gloss Gold"), a private company located in Markham, Ontario. Gloss Gold is controlled by an investor group based in Hong Kong and China. Under the terms of the MOU which is subject to a due diligence period of 45 days and a definitive agreement, Gloss Gold can obtain an 80% interest in the project by paying Randsburg $50,000 upon signing of the definitive agreement, payments totaling $90,000 the first year and $25,000 per month thereafter up to $2 million. On the earlier of Gloss Gold obtaining a mining license or transferring its interest in the property or December 31, 2013, the balance of the payment must be made either in cash or shares of the acquiring company at the option of Randsburg. Gloss Gold agrees to undertake a feasibility study within 2 years, spend a minimum of $200,000 on exploration and development by June 30, 2012, including completing a geophysical survey and a drill program of at least 1,000 metres by June 30, 2012; and in addition, spend a minimum of $200,000 on exploration and development per year after July 31, 2012. Should the project be placed into production Gloss Gold shall cover all costs up to $100 million in respect of the construction of a mine and plant. Gloss Gold will be the Operator.

The Companies are forming an alliance to advance Flett and to pursue other mining projects. "We are pleased to be working with Gloss Gold on the Flett project," stated Michael Opara, President of Randsburg. "Gloss Gold has a business team with considerable experience in the Hong Kong and Chinese capital markets and we look forward to advancing this and potentially other projects with them."

On behalf of the Board of Directors of

Randsburg International Gold Corp.

Michael Opara, President and Chief Executive Officer

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