Unigold Closes Second Tranche of Non-Brokered Private Placement Financing

TORONTO, ONTARIO--(Marketwire - Dec. 21, 2011) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES AND NOT FOR DISSEMINATION IN THE UNITED STATES

Further to its press release dated November 17, Unigold Inc. (TSX VENTURE:UGD) (the "Company") is pleased to announce the closing of the second tranche of its previously announced non-brokered private placement. The Company issued 4,000,000 units of the Company (the "Units") at a price of $0.10 per Unit for aggregate gross proceeds of $400,000 (the "Second Offering").

Each Unit consisted of one common share of the Company and one-half of one common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant entitles the holder thereof to acquire one common share of the Company at a price of $0.15 at any time until November 17, 2013.

The total gross proceeds of the offering (tranches 1 and 2) were $2,480,000. The net proceeds of the offering (tranches 1 and 2) will be used by the Company (i) to conduct mineral exploration activities in respect of the Company's projects located in the Dominican Republic, and (ii) for general corporate purposes.

Completion of the Offering is subject to receipt by the Company of the final approval of the TSX Venture Exchange. All securities issued under or in connection with the Second Offering will be subject to a hold period in Canada until April 22, 2012.

These securities have not been and will not be registered under the United States Securities Act of 1933, as amended, or the securities laws of any state and may not be offered or sold in the United States or to US persons (as defined in Regulation S of the US Securities Act) unless an exemption from registration is available.

About Unigold Inc.

Unigold is a growth-oriented junior natural resource company focused primarily on exploring and developing a large land position in the Dominican Republic which is highly prospective for gold mineralization.

Certain statements contained in this document, including statements regarding events and financial trends that may affect our future operating results, financial position and cash flows, may constitute forward-looking statements within the meaning of the federal securities laws. These statements are based on our assumptions and estimates and are subject to risk and uncertainties. You can identify these forward-looking statements by the use of words like "strategy", "expects", "plans", "believes", "will", "estimates", "intends", "projects", "goals", "targets", and other words of similar meaning. You can also identify them by the fact that they do not relate strictly to historical or current facts. We wish to caution you that such statements contained are just predictions or opinions and that actual events or results may differ materially. The forward-looking statements contained in this document are made as of the date hereof and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ materially from those projected in the forward-looking statements. Where applicable, we claim the protection of the safe harbour for forward-looking statements provided by the (United States) Private Securities Litigation Reform Act of 1995.