Glass Earth Gold Completes Purchase to Consolidate Placer Production; Financial Statements and Management's Discussion & Analysis for the Year Ended 31 December 2011

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WELLINGTON, NEW ZEALAND--(Marketwire -03/28/12)- Glass Earth Gold Limited (TSX-V: GEL.V - News)(NZAX: GEL.NZ - News) ("Glass Earth" or the "Company"), a New Zealand hard-rock gold explorer, is pleased to announce that TSX Venture Exchange approval has been granted for the issue of shares (reported 15 March 2012) for acquisition of full ownership of its placer gold production joint venture. Settlement of the transactions took place on March 19, 2012.

As reported on 15 March 2012, taking full control of these placer mining activities will enable the Company to significantly accelerate and increase gold production capacity. Glass Earth is continuing with gold production at the "Gunclub" mining operation while preparing for additional operations to commence nearby in New Zealand's Otago region. Site preparation has commenced at the "Drybread" minesite, with a second placer mining operation expected to commence within three weeks. The Company is also refurbishing and upgrading a third Gold Recovery Unit ("GRU") which is expected to be installed and running as another operation at Drybread by June.

Glass Earth Gold also announces today that it has filed its December 31, 2011 Year End Financial Statements and associated Management's Discussion and Analysis ("MD&A") report pertaining to that period with appropriate regulatory authorities.

During 2011, the Company announced the completion of two fundraising exercises which raised $2.9 million (before issuance costs), together with an additional $0.25m upon the exercise of warrants and options. As at 31 December 2011, the Company held $3.6m in cash. All dollars reported in this News Release are in Canadian Dollars.

The Company recorded a net loss for 2011 totaling $1.714 million (2010 - $1.467 million). Placer mining continued with only one Gold Recovery Unit effectively operating at a time. Cash contribution from the Company's 50% owned placer mining operation(s) totaled $316,000 for the year ended December 31, 2011. Placer mining expansion in 2012 should see a significant increase in both gross and net revenue.

Glass Earth is a gold exploration company and therefore classified as being at the 'development stage'. With all general and administration expenses being expensed, Glass Earth currently records losses each year arising from the expensing of these cash operating costs as well as other non-cash expense items.

The net loss for the year can include significant non-cash items (all in Canadian $'s):-

 

                                     12 months ended        12 months ended
                                    December 31 2011       December 31 2010
Revenue                                      752,000                584,000
Cost of sales                               (523,000)              (381,000)
                                 ---------------------  --------------------
Gross profit                                 229,000                203,000

Cash operating costs
Operating loss                             1,260,000                933,000
Foreign exchange (gain)                      (18,000)               (27,000)
                                 ---------------------  --------------------
                                           1,242,000                906,000
Non- Cash expenses
Write down Mineral Properties                695,000                574,000
Stock based compensation                      43,000                178,000
Income tax (benefit)/expense -
 deferred                                    (37,000)                12,000
                                 ---------------------  --------------------
                                             701,000                764,000
                                 ---------------------  --------------------
                                 ---------------------  --------------------
Net loss for the year                      1,714,000              1,467,000
                                 ---------------------  --------------------
                                 ---------------------  --------------------

About Glass Earth Gold

Glass Earth is one of New Zealand's largest gold exploration companies, with its experienced geological team exploring promising gold prospects across a land position of approximately 10,000 square kilometres, in both the North and South Islands.

In the North Island, exploration efforts are focused on large epithermal gold systems in the Hauraki Region, host to the 10 million ounce Martha Hill mine, (Newmont Mining).

In the Hauraki Region Glass Earth Gold has identified and developed significant ground positions around Newmont Mining's currently active Martha gold operations at Waihi. The Newmont-Glass Earth Gold Waihi West JV (Newmont earning in) and Hauraki JV (65/35), including drilling at the WKP discovery, is being actively explored and managed by Newmont in concert with Glass Earth Gold.

Glass Earth Gold has also defined several significant epithermal gold targets to independently explore in this region including the Muirs Reef project. Containing a historical resource of 390,000 oz (non NI 43-101-compliant, at 1.5 g/t Au and cut-off grade of 0.5 g/t Au), further drilling is being undertaken to prove up the resource.

In the South Island, exploration efforts are focused on the Otago Region, home to OceanaGold's 7 million ounce Macraes Goldfield, for identification of mesothermal "Macraes-style" gold targets and revenue generation through placer (alluvial) gold production.

For more information on Glass Earth Gold, please visit www.glassearthgold.com.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) nor New Zealand Exchange Limited has reviewed this release and neither accepts responsibility for the adequacy or accuracy of this release.

Contact:

Glass Earth Gold Limited
Simon Henderson
President and Chief Executive Officer
+64 4 903 4980
info@glassearthgold.com
www.glassearthgold.com
CHF Investor Relations
Jeanny So
Director of Operations
+1 416 868 1079 x 225
jeanny@chfir.com
CHF Investor Relations
Lauren Clarke
Associate Account Manager
+1 416 868 1079 x 241
lauren@chfir.com

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