Amendment to Loan Agreement

20 March 2018

Scotgold Resources Limited

("the Company" or "Scotgold")

Amendment to Short Term Loan Agreement

The Company is pleased to announce that the following key terms in the Short Term Loan Agreement between the Company and its chairman, Mr Nat le Roux ("the Agreement") as announced on 15 March 2017 have been amended as follows:

· Repayment Date extended to 30 September 2018

· Interest Rate revised to Nil % per annum.

The Short Term Loan of £1,000,000 was drawn down by the Company on 30 March 2017 and attracted an interest rate of 10% per annum, which at the Company's option was accrued but is now no longer payable. The loan can be repaid before the Repayment Date by the Company without penalty.

The amendment to the Agreement constitutes a related party transaction under Rule 13 of the AIM Rules ("the Transaction"). Accordingly, the board of Scotgold, excluding Nat Le Roux who is precluded from opining, consisting of Richard Gray, Christopher Sangster, Philip Jackson and Richard Barker, having consulted with SP Angel, the Company's nominated adviser, consider that the terms of the Transaction are fair and reasonable insofar as its shareholders are concerned. It is noted that all other terms of the Agreement remain unchanged.

Richard Gray, CEO of Scotgold, said:

"This extension to the repayment date now gives us the necessary time to progress the funding required to complete the first stage of development of the Cononish Gold Mine. Nat le Roux's continued support and confidence in our Project is amply demonstrated by his willingness to forgo all interest due on the loan, which can now be applied for the benefit of all shareholders."

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

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