KGC Kestrel Gold Inc

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Kestrel Gold Inc. ("Kestrel" or the "Corporation") (TSX VENTURE:KGC) is pleased
to announce that results now compiled from trench sampling at the King Solomon
Dome property ("KSD Property"), south of Dawson City, Yukon Territory, confirm
the existence of high grade gold mineralization on the known Sheba-Mitchell vein
trend and beyond. 


Twenty-three samples (including field twins) obtained from Kestrel's 1,000 m
(linear length) 2011 summer trenching program (consisting of 22 trenches) (the
"2011 Trenches"), returned gold values above 2 g/t Au (several with silver
values above 50 g/t Ag) and are well distributed over a large area. The highest
gold value obtained was17.1 g/t Au (chip sample over 0.19 metres) in Trench 2-U
approximately 135 metres south east of the Mitchell Shaft. 


Based on the 2011 trench sampling alone, the estimated strike length of the
structurally controlled discordant quartz vein system thought to be responsible
for the presence of this high grade gold, is over 1.7 kilometres long with a
width of at least 400 metres. This width is measured from gold mineralization in
Trench 12-D south of the Sheba workings to a newly defined 'Sheba West' zone
crossed in part by Trenches 11-V and 9-W. 


North-north west trending brittle 'D4' structures that cut through existing
structural fabrics of the Klondike Schist host rocks, are believed to be the
dominant gold bearing conduits and can be traced from trench 16-L (north of the
Mitchell shaft where a select sample of 8.19 g/t Au was obtained) a distance of
1.7 km south-south east, to trench 12-D (south of the Sheba showing) where
values of up to 5.17 g/t Au were obtained in selected samples. 


In the 2011 Trenches, the 'D4' veins are up to a metre in thickness and are
generally vertical to moderately dipping to the east. Numerous less than 1 metre
wide 'D4' veins (0.03m to 0.25m) which collectively can make up much of the rock
mass in certain areas, often have associated high grade gold values along their
margins. 


Associated gold bearing hydrothermally altered wall rock zones of +/- quartz /
chlorite / muscovite / sericite / epidote altered schist, often gouge-like with
abundant pyrite cubes, are an important component of the system, giving economic
gold potential up to several metres from the larger and more obvious quartz
veins. In this regard, weighted averages of chip samples across vein and wall
rock in Trench 9-W returned 11.0 metres of 0.57 g/t Au, in Trench 8-B returned
14.0 metres of 0.42 g/t Au and in Trench 12-D returned 8.0 metres of 0.48 g/t
Au. All three trenches are spaced several hundred metres from one another but
are considered to be part of the main Sheba-Mitchell gold system. In other
areas, high grades of gold have been obtained from relatively 'unmineralized
rock' (i.e., Trench 6-X 70 metres northeast of the Mitchell shaft returned 2.0 m
of 5.40 g/t Au). Such areas require further re-examination. 


No trenching was conducted on the eastern part of the property including the
Orekon Vein area, some 400 metres east of the main Sheba-Mitchell trend where a
number of greater than 2 g/t Au rock samples (non NI 43-101 confirmed) have been
obtained by previous workers. One selective grab sample from a road trench over
450 metres south east of the Sheba showing, was however collected and returned
4.41 g/t Au and 78.1 g/t Ag.


In addition, a 0.25 metre chip sample taken in an existing cut near the fork of
the headwater tributaries of Dominion Creek, some 1100 metres south east of the
main Sheba-Mitchell zone (at Trench 12-D), returned 2.02 g/t Au. The Corporation
believes this is significant, as the sample was taken on a 'D4' type vein
similar to those sampled in the main zone to the north. It is believed that this
'new zone' is a continuation of the north-north west trending Sheba-Mitchell
gold trend, but is perhaps sinistrally offset by later structures similar to
what have been observed in some trenches. The Corporation believes this gives an
estimated strike length of the (offset) mineralizing gold system on the KSD
Property, to be in excess of 2.6 km. Relatively little exploration has been
conducted in this southern portion of the property and the system remains open
along strike. 


Elevated arsenic, lead and silver values correlate (either all or in part) with
higher gold values (with silver seemingly more concentrated at the Sheba end of
the Sheba-Mitchell trend). Galena was commonly observed in the gold bearing
veins. 


The discordant and extensive gold bearing system at the KSD Property appears to
be open in all directions. The results are particularly encouraging as the
orogenic gold model that is being applied at the KSD Property is consistent with
the size and continuity of what has been discovered to date on the ground. The
model incorporates the reasoning that analogous orogenic gold deposits in other
parts of the world often have sizable depth and strike lengths. These results do
not preclude this possibility at the KSD Property. 


586 rock samples (including field twins) were collected in the trenching program
and subsequent cursory regional sampling program. A comprehensive QA/QC
procedure was put in place involving the random insertion of known standards,
blanks and field twins (collectively comprising 20% of submitted samples).
Randomly selected coarse pulps and reject fractions were re-analysed by a second
lab, along with standards and blanks. All analytical work was completed at Eco
Tech Laboratory Ltd (Stewart Group Geochemical and Assay), in Whitehorse, Yukon
and Kamloops, B.C. and at ALS Canada Ltd. in North Vancouver, B. C. (both
registered for ISO 9001:2008). The bulk of the samples were submitted to Echo
Tech with ALS Canada acting as the second lab. Both laboratories used their own
internal QA/QC check regimens. Samples were submitted for 30 g fire assay with
AA finish for gold and 35 element ICP-AES (Aqua Regia digestion). No metallic
screening was conducted on any of the samples but is being considered for future
submissions in an attempt to address nugget effects. 


Maps illustrating the content of this release are to be posted on the company
website.


Technical aspects of this news release have been reviewed and approved by W.A.
Taylor, P.Geo., hereby designated as a qualified person under National
Instrument 43-101.


About Kestrel Gold Inc.

Kestrel is a gold exploration company headquartered in Canada. Its two principal
projects are the King Solomon Dome property in Canada's Yukon Territory and the
Huachi property in Argentina. Kestrel (KGC) is listed on the TSX Venture
Exchange.


Cautionary Statements

This news release contains "forward-looking information" within the meaning of
applicable securities laws, including with respect to the potential
mineralization of the KSD Property and possible future exploration of the KSD
property. Readers are cautioned to not place undue reliance on forward-looking
statements. Forward-looking statements are based on certain key assumptions made
by the Corporation, including assumptions based on the Corporation's current
exploration results, and assumptions related to obtaining sufficient financing
and other resources to carry out any future exploration. Actual results and
developments may differ materially from those contemplated by these statements
depending on, among other things, the inherent risks involved in the exploration
and development of mineral properties, the uncertainties involved in
interpreting exploration results and other geological data and the ability of
the Corporation to obtain the funds and resources required to carry out further
exploration . The forward-looking statements in this press release are made as
of the date of this release and the Corporation undertakes no obligation to
update publicly or revise any forward looking statements whether as a result of
new information or otherwise, except as required by applicable securities laws.
The Corporation undertakes no obligation to comment on analyses, expectations or
statements made by third parties in respect of the Corporation or its financial
or operating results or (as applicable) its securities.

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