December 11, 2012

Symbol: TSX – V: ANG

Angel Gold: President Letter to Shareholders

Vancouver, British Columbia – Angel Gold Corp. (TSX-V: ANG) (“Angel” or the “Company”) Dear Shareholders and Friends,

Since I took the reigns as President and CEO in July of 2012, Angel Gold has made significant progress in advancing our Colombian gold exploration properties and building a proven team with a track record of success. We are committed to enhancing shareholder value and I have some exciting news to share with you.

Our most advanced, drill-ready project is El Cafetal. It is a historic producing gold property located along the prolific Middle Cauca gold belt of Colombia, host to a number of world-class gold-copper porphyry discoveries. Accessible by paved road, the property is approximately 2km north east of the Colombia Mines Yarumalito project, currently joint ventured with Teck Resources Limited and 4km north of Solvista Gold Corp.’s recent discovery at Caramanta. The environmental license issued for the El Cafetal mining title is valid, meaning it contains all the permits needed to drill, develop and put a mine into production.

Exploration conducted to date at El Cafetal by Angel includes the opening and sampling of over 50 prospects and adits, some as deep as 87 metres. Property-wide rock chip and channel samples returned gold values ranging from 0.10 gram per ton to 47.63 grams per ton and indicate the presence of robust gold mineralization. One of the most important adits sampled was the Salto adit, where sampling of one-metre widths along the structure returned 25.5 metres of 3.65 grams per tonne (g/t) gold (Au), including 3 metres of 5.95 g/t Au. Follow-up ground mobile metallic ion (MMI) soil sample survey and a ground geophysical induced polarization/magnetic program identified a 600-by-300 metre anomalous gold-silver-copper zone that also corresponds with near- surface anomalous chargeability in the IP survey. The IP anomaly at a depth of 200 metres extends 1,300 metres along the East-West strike of the sheeted/stockwork vein zone and up to 600 metres across the strike (averaging 300 metres in width). The geophysical anomaly remains open at depth. Initial access trails and drill pads have been prepared and we are currently reviewing proposals for an initial drill program to test the zone. A National Instrument 43-101 technical report for El Cafetal is in production.

As stated in our news release of November 26, 2012, Jon Lehmann, a professional geologist who has been involved in Colombian gold exploration for over 18 years was appointed as a Director. He was one of the founders and VP Exploration for Ventana Gold Corp., managing the successful discovery and delineation of the La Bodega gold deposit which paved the way for Ventana’s $1.4B cash buyout by AUX Canada Acquisition Inc. Until now, Jon and I have found very few exploration opportunities that deserve the same attention given to La Bodega. El Cafetal appears to be equally deserving and we look forward to Mr. Lehmann’s contributions as we advance our gold exploration projects and build additional value in the company.


On December 2, 2012 we also announced the appointment of Marion McGrath as Corporate Secretary of the Company. Mrs. McGrath is the owner of iO Corporate Services Ltd. and has been actively engaged in the securities industry for over 25 years. She has served as a director and officer of numerous public companies in a corporate administrative capacity.

In addition, the in-country team assembled by Angel Gold possesses outstanding experience and integrity. They are professionals, each having more than ten years of experience. This is the same team that made La Bodega’s success possible.

The Colombian subsidiary has Juan Angel Fuentes as Legal Representative, Financial and Administrative Manager. Mr. Fuentes is a Registered Accountant and a tax specialist. He has 15 years of experience, 5 years as Internal Auditor for CVS Explorations Ltda. (Colombian subsidiary of Ventana Gold)

Our field technical team will be led by our Senior Consultant Afredo Bernasconi, Ph.D. Mr. Bernasconi is a geologist with over 40 years of experience in the mining industry in all phases of exploration, project evaluation and project management; he also worked 5 years as Senior Consultant for Ventana Gold, assisting the Exploration VP with training and supervision of the Colombian junior geologists.

The projects are going to be managed by Pedro Hernando Herrera, Senior Geologist, and Mining Geology specialist from Buenos Aires University. Pedro has 12 years of experience, 5 years as Field Geologist with CVS Explorations Ltda. (Colombian subsidiary of Ventana Gold) at La Bodega, and one year as Solvista’s Drilling Manager at their Guadalupe project.

To manage the data and Information Technology Angel hired Adrian Quintero, a Petroleum Engineer with specialized experience in Data Base Management, QA-QC, IT management and the GEMCom exploration/development computer program. Mr. Quintero has over 10 years of experience, 5 as IT and Data Manager for CVS Explorations Ltda. (Colombian subsidiary of Ventana Gold) at La Bodega project, responsible for the data quality control.

The field logistics and purchases are going to be managed by Jonathan Rojas. Mr. Rojas has over 15 years of experience managing logistics for construction and mining projects, including 5 years with CVS Explorations Ltda. (Colombian subsidiary of Ventana Gold) at La Bodega project.

At Angel we are fully committed to developing our projects in a sustainable and responsible way. Working closely with the communities in which we operate, building transparent, respectful and strong relationships. We have also adopted higher standards of environmental responsibility. Our mission is to deliver sustained industry leading growth and value for both our shareholders and for the communities involved with our activities.

The professionals integral to the fulfillment of our higher standards of corporate social responsibility that the Company has adopted are:

Fabio Maldonado, Environmental Manager. Mr. Maldonado is an Environmental Engineer and Agronomist with over 15 years of experience, 5 with CVS Explorations Ltda. (Colombian subsidiary of Ventana Gold) as


Environmental Manager. Fabio led the team that made La Bodega project a model of soil reclamation, and erosion management.

Cristian Alberto Toloza, Community Relations Manager, historian, social work, social development and conflict resolution specialist with 10 years of experience, 5 with CVS Explorations Ltda. (Colombian subsidiary of Ventana Gold) Cristian was Stella Frias’ assistant at La Bodega project. La Bodega was presented at 2011 PDAC Conference as model of responsible exploration.

Claudia Liliana Uribe, Human Resources – Health and Safety Manager. Mrs. Uribe is a Business Administrator, Labor Law and Health and Safety specialist with 10 years of experience, 5 years with CVS Explorations Ltda. at La Bodega, a project with more than 250 employees.

Our efforts to continue with the acquisition of quality properties on producing mineral belts was rewarded by the notice that the Secretariat of Mines of the Government of Antioquia has determined that two areas solicited by the Colombian subsidiary of Angel Gold Corp. initially have been found to be free of conflict with existing concessions and pre-existing claims. El Pino West is an area of 2,014 hectares, while Heliconia is 3,927 hectares and will consist of two parcels.

El Pino West (EPW) lies immediately north of the concessions making up the Gramalote project (B2Gold/AngloGold joint venture) and is crossed by south-east trending faults similar to those believed to control the emplacement of mineralization at Gramalote. In April of 2012 B2Gold announced an updated resource estimate of 2.5 million ounces of gold in 97.1 million metric tonnes of material.

Heliconia is approximately 25 kilometers west of Medellin. The area was solicited on the basis of stream- sediment geochemical information released by the Colombian geological survey Ingeominas showing an area north of the mining district of Titiribi in the Middle Cauca Belt that had anomalous gold and silver in stream sediments.

The acceptance by Angel Gold S.A.S of the boundaries as determined by the legal study is the first step in perfecting a mineral concession contract over the areas.

In order to fulfill the responsibility principles that the Company has adopted for its operations, we have been working on gaining our stakeholders support by building excellent relations with the communities that are in our vicinity. We also finished the works needed to update the Environmental License that includes all the permits needed to drill at El Cafetal; the fulfillment report was filed on November 29, 2012.

In addition, we advanced with the permitting process at Buritica West by receiving from the environmental authority (Corantioquia) the Administrative Resolution that accepted the filed documentation in connection with the environmental permits needed to drill at Buritica West.

The Environmental Authority Resolution states the steps that the company has to follow in order to have the water concession, which is the main environmental permit to drill. Also, the resolution states the laws and regulations that will apply for fees payments and the technical visit needed for the permit approval.