BCGold Corp fka BCG

[LGL8054]

Letter From the President July 10, 2012
VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 10, 2012) -

Dear Investor,

I write this letter in addendum to BCGold Corp.'s announcement earlier today (July 10, 2012) that the Company is going to market to raise working capital for the remainder of 2012. The Company regrets that this financing must be done at a significant discount to our 2011 financing, but these are trying times for junior resource companies. BCGold Corp. has implemented a number of cost-saving measures to minimize its working capital expenses, which include staff reductions, restrictions of certain overhead expenditures, and downsizes to exploration efforts. We carefully implemented cost-savings measures that will allow us to maintain a high potential for exploration discovery and success in 2012 and see these measures as a prudent response to the current economic climate.

Like our peers, BCGold Corp. has seen its stock price plunge to record lows over the past year, in spite of a very successful year at our flagship Engineer Mine property. Unlike our peers, BCGold Corp. is positioned to offset exploration costs and minimize share issuances by obtaining capital through the monetization / forward sale of gold concentrate recovered from on-site processing of bulk sample material at the high-grade gold Engineer Mine property. By these means the Company has the ability to extract more exploration value for each dollar invested.

This financing will provide the Company with the necessary working capital to execute our budgeted exploration programs in 2012. BCGold Corp. has earmarked more than $750,000 in flow-through exploration dollars, currently on-hand, to advance Engineer Mine, the Off-White and South Quesnel copper-gold properties. Engineer mine will continue to be the primary focus of the Company. BCGold Corp. intends to dewater the 6 and 7 levels of the mine to access the down-plunge extension of the recently defined high-grade 505-3 and 505-5 gold shoots within the Engineer Vein. These levels will be mapped and sampled and air and water services will be installed for mining purposes.

In 2011 BCGold Corp. successfully mined and milled high-grade ore on the Engineer Mine property and produced nearly one tonne of marketable gold concentrate. That concentrate was sold to a refinery and the Company recently received a US$107,000 cash payment for 67.9 payable ounces of gold at US$1608/oz. Last year's work confirmed the presence of two accessible, high-grade gold exploration targets (please see news release dated February 29, 2012) grading between 1-2 oz/ton gold (containing up to 17,000 oz of gold) that the Company has targeted to mine and mill as bulk samples in 2013 and 2014.

The Company is aggressively marketing the forward sale of significantly more gold concentrate that could be produced at Engineer during the next 2 years and management is confident a deal will be at hand in the near term. Proceeds of this sale will be used to defer mining and milling costs of the recently confirmed high-grade shoots and to fund infrastructure improvements, resource expansion and mine design work. Until that time, however, the Company must go to market and secure operating capital by conventional means.
As a past, current or future BCGold Corp. shareholder, I would like to thank you for your support and consideration of the financing announced this morning. The current market malaise will not last forever and resource stocks will recover. Gold is holding its own, junior financings are gaining attention and investors are starting to take notice of the multitude of grossly undervalued opportunities out there - BCGold Corp. is a great example of such opportunities.

Please feel free to contact me or Kim Williams should you have any questions about additional information on the Company, our plans going forward, or our current financing.

Kind Regards,

Brian P. Fowler, P.Geo.

President & CEO