$LBGO .85 Liberty Gold Corp. Enters Into $15M Fina

$LBGO .85 Liberty Gold Corp. Enters Into $15M Financing Agreement To Advance Gold Exploration Activities

PHOENIX, June 19, 2012 /PRNewswire via COMTEX/ -- Liberty Gold Corp. (OTCBB: LBGO; "Liberty Gold" and/or "the Company") is pleased to announce it has entered into a $15M financing agreement, as of October 11, 2011, with institutional investor American Gold Holdings Ltd. (the Subscriber) for the purpose of advancing the Company's gold exploration activities.
According to the terms of the financing agreement, the Subscriber shall make available to Liberty Gold up to $15,000,000 until October 11th, 2013 (the "Completion Date") by way of Advances in aggregate amounts of not more than $1,000,000, and in integral multiples of $25,000. Liberty Gold shall use all Advances to fund operating expenses, acquisitions, working capital and general corporate activities.

The Completion Date may be extended for an additional term of up to 12 months at the option of Liberty Gold or the Subscriber. As well, the Subscriber may, at their discretion, take the option to subscribe up to a further $5,000,000 when Liberty Gold has received the total subscription from the initial agreement.

According to the agreement, Liberty Gold shall issue Units (each a "Unit") of the Company at the Unit Price within 15 Banking Days following the date of the receipt by the Company of any Advance. The Unit Price will be determined as the price equal to the higher of either (a) $0.45, or (b) 90% of the volume weighted average of the closing price (the "VWAP") of Common Stock, for the 5 Banking Days immediately preceding the date of the Notice, as quoted on OTC Markets or other source of stock quotes as agreed to by the parties.

Each Unit shall consist of one share (each a "Share") of the Common Stock of the Company and one share purchase warrant (each a "Warrant"). Each Warrant shall entitle the Subscriber to purchase one additional share (each a "Warrant Share") of Common Stock at an exercise price equal to 130% of the Unit Price at which the Unit containing the Warrant being exercised was issued, for a period of 3 years from the date such Warrant is issued.

As of June 18, 2012, Liberty Gold had drawn down $1.075M from the original $15.0M amount agreed upon, leaving a remaining balance of $13.925M the Company can still call on.

"This funding is exactly what Liberty Gold needs to take our gold exploration efforts to the next level," said Lynn Harrison, Liberty Gold's President and CEO. "And while we now find ourselves to be well financed, we're committed, as always, to utilizing the assets we have at our disposal in a cost effective manner so we can advance our projects as far as possible while continuing to pass on maximum value to our shareholders."

Liberty Gold remains focused on emerging as a gold and precious metals industry leader through strategic exploration of its portfolio of gold projects. As such, the Company will make use of the funds in the short term to plan and finalize details for an initial drilling program, and will release more information on that program as it becomes available.

FOR MORE INFORMATIONTo learn more about the Company, its projects, and latest news, visit Liberty Gold's website at http://www.libertygoldcorp.com.

ABOUT LIBERTY GOLD CORP.Liberty Gold Corp. is a publicly traded (OTCBB: LBGO) gold and precious metals exploration company focused on emerging as an industry leader while effectively growing America's reserves of gold. Headquartered in Phoenix, Arizona, Liberty Gold is committed to the responsible exploration and production of the nation's rich precious metals resources. The Company's stable of major gold projects is well established, and thanks to an active approach to property acquisitions, Liberty Gold's portfolio of significant assets continues to grow. For more information on the Company and its activities, visit Liberty Gold's website at http://www.libertygoldcorp.com.

ON BEHALF OF THE BOARD OF DIRECTORS,

Liberty Gold Corp.Lynn Harrison, President and CEO

2415 East Camelback RoadSuite 700Phoenix, AZ85016

Investor Relations:Toll Free: 1-800-961-5388E-mail: ir@libertygoldcorp.comOTCBB: LBGO