Kestrel Gold Inc. Announces Commencement of Diamond Drill Exploration Program at Huachi Property, San Juan Province, Argentina

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 15, 2011) - Kestrel Gold Inc. ("Kestrel" or the "Corporation") (TSX VENTURE:KGC) is pleased to provide an update related to exploration activities on its one hundred (100%) percent owned Huachi Property in San Juan Province, North Western Argentina.

Highlights of Huachi Property

All of the necessary permits have been granted for the Corporation's planned $1.2 million road building, trenching and diamond drilling program. Equipment and crews from Major Drilling Group International Inc. have been mobilized and it is anticipated that a 3000 metre (9,800') diamond drilling program will commence in the next few days.

Four main gold-silver mineralized zones have been identified at surface on the Huachi Property and this first phase of drilling and trenching will focus on these zones. Several of the drill holes are planned to go to depths in excess of 500 (1,640') meters to test the continuation of gold bearing structures. Gold mineralization to depths in excess of 360 (1,180') metres below historical workings, has previously been identified by prior drill programs (Cardero Resources, 2007).

The continuity of multiple precious metal-enriched epithermal breccias and stockworks and the extent of possible deep gold/copper-enriched feeder structures related to the porphyry stocks at the Huachi Property will also be tested.

Ground crews have completed the surveying of the control points that will be used in conjunction with high resolution aerial imagery to provide the most accurate 3D positioning of all geological data from the Huachi Property to date and to accurately locate all presented future drill hole positions.

Results of the diamond drilling and trenching program will be released as they are received by the Corporation, compiled and interpreted. All trenching and diamond drilling will be subject to QA/QC procedures on a continuous basis.

About Kestrel Gold Inc.

Kestrel Gold Inc. is a gold exploration corporation headquartered in Canada. Its principal projects include the King Solomon Dome properties in Canada's Yukon Territory and the Huachi and Antofalla properties, in Argentina. Kestrel Gold (KGC) is listed on the TSX Venture Exchange Inc.

Cautionary Statements

This news release contains "forward-looking statements" within the meaning of applicable securities laws relating to certain explorations activities. 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 related to sufficient financing and other resources to carry out planned exploration programs. Actual results and developments may differ materially from those contemplated by these statements depending on, among other things, insufficient funds or other resources to carry out the planned exploration programs. 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) their securities.