D'Aguilar Gold Limited (ASX:DGR) Announces New Non-Renounceable Rights Issue

Brisbane, May 18, 2010 AEST (ABN Newswire) - D'Aguilar Gold Limited (ASX:DGR) is pleased to announce a new non-renounceable rights issue to eligible shareholders, on the basis of one (1) new fully paid ordinary share for every eight (8) shares held, at an issue price of A$0.035 per share (New Shares), to raise approximately A$1.225 million, based on D'Aguilar's undiluted share capital (Rights Issue). Assuming no existing options on issue in the Company are exercised, approximately 34,979,887 fully paid ordinary shares will be offered under the Rights Issue.

The Rights Issue will be available to all registered shareholders who hold shares on 26 May 2010 (Record Date). Shares issued pursuant to the Rights Issue will rank equally with all shares on issue.

D'Aguilar does not require shareholder approval in relation to the Rights Issue. Pursuant to the provisions in section 708AA of the Corporations Act 2001 (Cth), D'Aguilar is not required to prepare a prospectus for the Rights Issue.

In accordance with the Listing Rules of the ASX, D'Aguilar has considered the number of shareholders with registered addresses outside of Australia, New Zealand and Hong Kong, and the size of the shareholdings held by those shareholders. Taking this into consideration, as well as the costs of complying with the legal requirements and the requirements of the regulatory authorities relating to the shareholders with registered addresses outside of Australia, New Zealand and Hong Kong, the Company has formed the view that it is unreasonable to extend the Rights Issue to those shareholders.

The purpose of the Rights Issue is to raise approximately A$1.225 million, excluding the costs of the Rights Issue. The funds raised from the Rights Issue will be used to fund the costs of the Rights Issue, to provide working capital and to fund D'Aguilar's group subsidiaries.

A proposed timetable for the Rights Issue is set out in the table below:

------------------------------------------------------------Date            Event(s)------------------------------------------------------------18/05/2010  Announce Issue18/05/2010  Lodge Appendix 3B with ASX20/05/2010  "Ex" Date - securities are quoted on an ex basis26/05/2010  Record Date01/06/2010  Lodge s708AA Notice01/06/2010  Dispatch offer documents to shareholders01/06/2010  Issue Opens17/06/2010  Issue Closes25/06/2010  Allotment of shares under Issue25/06/2010  Lodge s708A Notice25/06/2010  Despatch Date28/06/2010  Normal trading resumes------------------------------------------------------------

This timetable is indicative only and may be subject to change subject to the requirements of the Corporations Act 2001 (Cth) and the ASX Listing Rules.

The Rights Issue is being made without a disclosure document, pursuant to the exemption granted in section 708AA of the Corporations Act 2001 (Cth) (Corporations Act). D'Aguilar will prepare and send an offer document to shareholders on 1 June 2010, as set out in the timetable above.

Excluded information

D'Aguilar advises that as at the date of this notice there is no information:

(a) that has been excluded from a continuous disclosure notice in accordance with the ASX Listing Rules; and

(b) that investors and their professional advisors would reasonably require for the purpose of making an informed assessment of:

1) the assets and liabilities, financial position and performance, profits and losses and prospects of the Company; or

2) the rights and liabilities attaching to the New Shares.

Further information

The Company anticipates that, approximately 34,979,887 New Shares will be issued (this number may have to be increased to 35,767,387 New Shares to existing option holders exercise their options prior to the Record Date). The New Shares will be issued for A$0.035 each.

Upon completion of the Rights Issue, and assuming that existing option-holders do not exercise their options, the issued capital of D'Aguilar will comprise approximately 314,818,985 shares and 6,300,000 options exercisable at prices ranging from A$0.09 to A$0.22 each.

The New Shares will rank equally in all respects with D'Aguilar's existing shares. If an eligible shareholder's entitlement results in a fraction of a New Share, the shareholder's entitlement will be rounded up to the nearest whole number.

There will be no deferred settlement trading in respect of the New Shares to be issued pursuant to the Rights Issue. Trading in the New Shares is expected to commence on 28 June 2010, the first business day following dispatch of the holding statements for the New Shares.

An Appendix 3B (see link at the bottom) applying for quotation of the New Shares is attached to this announcement. D'Aguilar encourages all eligible shareholders to participate in the capital raising.

For the complete D'Aguilar Gold announcement including Appendix, please refer to the following link:

http://www.abnnewswire.net/media/en/docs/62887-ASX-DGR-220711.pdf

Contact

Mr Nicholas Mather Managing Director D'Aguilar Gold Limited Tel: +61-7-3303-0680 Mob: +61-417-880-448 Email: info@daguilar.com.au