ATW Gold Corp.: Drilling at Gullewa Yields Significant Mineralization North and South of the Deflector Deposit

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 18, 2009) - ATW Gold Corp., (TSX VENTURE:ATW), ("ATW" or the "Company"), is pleased to report on additional drill results from its wholly owned Gullewa Gold Mine ("Gullewa") located in Western Australia. Highlights include a 4 metre (m) intercept, grading 10.35 grams per tonne (g/t) gold, 12.32 percent copper and 72.3 grams per tonne silver.

Based on drilling by previous operators, the Deflector deposit was thought to be closed off north and south. Work completed by ATW during 2008, indicated mineralization might be present in lateral extensions north and south of the deposit, but modestly offset by faulting. As a result, ATW embarked on the current drill program to test all gravity and Induced Polarization (IP) targets to locate any Deflector extensions. This drilling was wide spaced and drilled over several kilometres both north and south of the Deflector program.

To date, ATW has completed 37 core holes totaling approximately 8,508 metres. Assay results have been received for 33 holes. A tabulation of all results from this program is available on the Company website. While many holes contain mineralization, three holes are of significant importance. Results of these holes are tabulated below:

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Hole ID From (m) To (m) Thickness (m) Au g/t Cu% Ag g/t
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9DEF013 52 94 42 1.65 0.40 1.25
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incl 53 56 3 6.62 0.37 1.00
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incl 53 54 1 13.65 0.37 3.00
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incl 69 71 2 5.35 1.50 0.86
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incl 76 77 1 1.05 11.00 2.83
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incl 80 83 3 4.92 3.66 0.68
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9DEF034 127 134 7 11.01 0.30 0.80
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9DEF037 104 108 4 10.35 12.32 72.30
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The significance of these results is as follows:

9DEF013 - 600m southwest of the Deflector mineralization. A portion of this drill hole was previously reported in the last press release. Additional sampling has been completed in the transitional zone. The original sampling only tested the diamond core but on further inspection of the RC drilling (precollar), quartz veining was also located in the weathered zone. This extended the original intercept of gold and copper mineralization from 28 metres to 42 metres. The mineralization consists of quartz veins with pyrite, chalcopyrite and minor pyrrhotite hosted in basalt. Alteration of the basalt consists largely of epidote and chlorite. Some of the mineralization may be supergene as it clearly occurs at weathering interfaces. The apparent strike length of this zone (interpreted from geophysics) is about 1000 metres.

9DEF034 - 70m directly south of the Deflector Central lode. Previous explorers did not recognize the southerly plunge to the Deflector mineralization. This was recognized by ATW, by integrating a previous Induced Polarization (IP) section with historical shallow drilling showing the target was not tested. Mineralization in this intercept is hosted by quartz veining with pyrite and minor chalcopyrite within basalt. The basalt has been brecciated in parts and altered by epidote and chlorite. The apparent strike extension to the south of the Deflector mineralization is in the vicinity of 400 metres. This has been interpreted by integrating this drilling with previously collected drilling data.

9DEF037 - 150m northwest of the Deflector mineralization and appears to be fault offset. This intercept contains massive chalcopyrite and quartz veining within a basaltic host. The intercept is open down dip and has not been adequately tested along strike.

The mineralization was discovered in an area that was thought to be thoroughly explored but it now seems likely that the historical drilling in this area may not have been effectively sampled.

Other Results

Results from the rest of the core drilling that tested Induced Polarization (IP) targets directly south and north of the Deflector deposit intersected gold only mineralization. This style was similar to the Deflector North mineralization that had been previously mined by open cut. The results are posted on the website.

Further geophysical interpretation was undertaken attempting to locate the copper gold mineralization. Several east-west fault offsets were interpreted. Coupled with historic anomalous drill results this work identified a mineralized area to drill test, leading to the successful drilling of holes 9DEF019 and 9DEF037 that located the Deflector mineralization.

Phase 2 Drilling

ATW stood down both drill rigs during late July due to exceptionally wet weather. This gave ATW an opportunity to catch-up on the backlog core logging and assays and re-interpretation.

One drill rig was mobilized to Burnakura to start drilling the northern extension. Results from this drilling are anticipated shortly. ATW plans to re-commence drilling at Deflector during September, targeting the new mineralized discoveries.

Scoping Study

A scoping study was initiated during May to review the economics of mining and processing Deflector mineralization. This study is on track to be completed during November.

Tasks completed to date are:

1. Environmental baseline studies on the tailings dam and Deflector water discharge;

2. Processing plant refurbishment and upgrade cost estimates;

3. Metallurgical revision on previous metallurgical BFS study and recommendations.

Works in progress are:

1. Drilling Deflector extensions north and south;

2. Pit optimizations on current Deflector mineralization;

3. Native title discussions on miscellaneous licences for roads and water pipelines.

As mentioned above, drilling is currently ongoing at ATW's wholly owned Burnakura Gold Mine. Since this program began in early August, six drill holes aimed to increase resources north of the NOA2 underground workings have been completed. Results are pending.

All assays were completed by Genalysis Laboratory Services in Perth. Samples were dried, crushed and pulverized with 85% of the sample achieving minus 75 micron. Gold Analysis was completed by 50 gram fire assay with a detection limit of 0.01 ppm. Cu and Ag were analyzed by AAS using an acid digest with detection limits of 1 ppm.

Gullewa is located 450 kilometres north of Perth, in the Yalgoo mineral fields of Western Australia. Gullewa is a 550 sq kilometre property that hosts several gold deposits of various size and grade, the most significant being the Deflector gold-copper deposit. which contains a measured and indicated resource of 369,000 ounces at 6.75 grams per tonne (g/t) gold equivalent ("AuEq") and an inferred resource of 400,000 ounces at 7.71 g/t AuEq (gold equivalent ounces, AuEq, are calculated using the ratio: 1% copper equals 2.5 g/t gold and a cut-off grade of 1.0 g/t AuEq). Mining infrastructure assets at Gullewa include an 800 tonne per day CIL plant, a licensed tailings disposal facility, a 50-person camp, offices, and workshops.

Brent Butler, CEO & President commented, "This first phase of drilling has been successful in locating the offset to the Deflector mineralization both north and south. Phase two drilling starting in September will now concentrate on delineating additional resources."

The contents of this news release have been reviewed by Brent Butler who is a qualified person as defined by National Instrument 43-101.

ATW GOLD CORP.

Brent Butler, President & CEO

"This news release may contain forward-looking statements. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements."