Mr. Wenhong Jin reports

TRANSCONTINENTAL GOLD CORP. PRIVATE PLACEMENT AND DEBT SETTLEMENT

Transcontinental Gold Corp. has arranged a non-brokered private placement of units of the company at a price of eight cents per unit for gross proceeds of $400,000. Each unit shall be composed of one common share and one-half of one share purchase warrant. Each warrant shall be exercisable into a common share at a price of 16 cents per warrant share at any time up to the close of business on the third anniversary of the date of issuance of the units. Closing of the offering is subject to approval of the TSX Venture Exchange.

In addition to the offering, the company intends to settle outstanding debt in the amount of $52,222 through the issuance of units.

The units issued in connection with both the offering and the debt settlement shall be subject to a hold period of four months.

The company intends to use the proceeds from the offering for general and administrative expenses and to seek out assets for the purpose of undertaking its qualifying transaction.