D'Aguilar Gold Limited (ASX:DGR) Update On Ridge Exploration Proposed IPO On ASX

Brisbane, Feb 25, 2011 AEST (ABN Newswire) - Further to the previous announcements of 19 October and 1 December 2010, the Directors of D'Aguilar Gold Limited (ASX:DGR) wish to advise that the impending merger between 86% DGR subsidiary, Ridge Exploration Pty Ltd (Ridge), and Canadian TSX-V listed Coltstar Ventures Inc (Coltstar) (CVE:CTR) has been terminated.

D'Aguilar Gold, on behalf of the Ridge vendors, has terminated the transaction due to the failure of Coltstar to meet its obligations under the Agreement, including the key areas of due diligence and project financing.

D'Aguilar has continued to fund the ongoing exploration work on the Ridge tenements, and with the current buoyancy of the global iron-ore market, the Directors have committed to an IPO of Ridge and listing on the ASX by mid 2011. D'Aguilar has received an offer to underwrite the IPO to the extent of $6 million.

D'Aguilar and existing shareholders in Ridge will hold approximately 50% equity ($6m at the IPO price) in the company following the IPO. The Directors believe this outcome to be substantially better, and in the interests of Ridge and D'Aguilar shareholders, than the alternative in Coltstar, with a current market valuation of approximately A$3.6 million.

The process of taking Ridge to an IPO is expected to take approximately 3 months, as the availability of the documentation and independent reports created for the various regulatory elements of the previously proposed merger will enable the timely and efficient preparation and issue of the Prospectus document.

At the time of the IPO of Ridge, a Priority Offer will be made available to D'Aguilar Gold shareholders.

Further details will be released in due course.

Contact

Mr Nicholas Mather Managing Director D'Aguilar Gold Limited Ph: +61-7-3303-0680 Karl Schlobohm Company Secretary D'Aguilar Gold Ltd Ph: +61-7-3303-0680 D'Aguilar Gold Limited Email: info@daguilar.com.au http://www.daguilar.com.au