Sovereign Gold Announces Follow on Investment by Stanhill Capital Partners

LONDON, February 14, 2012 /PRNewswire/ --

Stanhill take ownership to over 50% of company

Windsor based Sovereign Gold Limited ("Sovereign Gold" or the "Company"), the specialist investment company that acquires exposure to gold through buying British Sovereigns, is delighted to announce that Stanhill Capital Partners, a Hong Kong based merchant banking group, has provided further investment to support the company's growth and expansion plans.

The investment has been structured through a private placement of equity as well as a convertible bond that is secured on the company's existing and future inventory of Sovereign coins. Following the investment, Ilyas Khan, senior partner of Stanhill Capital Partners will take over as Non-Executive Chairman of Sovereign Gold, and Stanhill will also take up another board seat.

Sovereign Gold is a truly unique and fast-growing gold focused investment company. Established in mid 2011 and operationally active since September of that year, the Company is in the process of building up a Sovereign coin buying network in the UK and, through its shares once they are listed, will offer investors a secure, low-cost and convenient way to invest and hold physical gold without the inconvenience associated with taking physical delivery or the risks associated with synthetic structures. Sovereign Gold offers full un-hedged exposure to physical gold with no exploration or mining risks. Additionally, Sovereigns, as legal tender, attract no VAT or capital gains tax, and thus provide pure exposure to gold for investors.

A representative of Stanhill Capital Partners commented: "we are very pleased to be supporting Sovereign Gold's ambitious roll out. The additional funds will allow the company to expand its purchasing network and follows a period of significant growth since our initial venture backing. Sovereign Gold has a strong track record of delivery and is extremely well placed to benefit from the increasing global appeal of physical gold investment. We look forward now to a public quotation during the coming year."

About British Gold Sovereigns

The British sovereign (originally treated as the one pound coin) is one of the most widely held gold coins in the world and, unlike paper investments, has a real and permanent tangible value and is legal tender in the United Kingdom.

Gold sovereigns were first minted honouring the reign of Henry VII in 1489 and have been issued for most English Kings and Queens since that time. British gold sovereigns ceased production in 1604 and recommenced again in 1817 when a standardised coinage system was re-introduced. Gold sovereigns were minted continuously for over a century from 1817 to 1932 when Britain moved off the gold standard. Production of gold sovereigns was resumed again in 1957. The Royal Mint estimates that over 1 billion coins have been minted in total, though only a small proportion of those are likely to still exist.

Sovereigns are minted from 22 carat gold, and weigh in at 0.2354 troy oz, which is just a fraction under 1/4oz or 7.9881 grams.

For further information, please contact:
Stanhill Capital Partners
Waseem Shiraz +44-20-7399-4380