Kestrel Gold Inc. Announces Exploration Results For King Solomon Dome Property, Yukon Territory

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 14, 2011) -

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Kestrel Gold Inc. ("Kestrel" or the "Corporation") (TSX VENTURE:KGC) is pleased to announce that its 2011 soil geochemistry program on the King Solomon Dome property (the "KSD Property") in the Yukon Territory combined with pre-2011 geochemical results has confirmed the existence of a large and significant gold geochemical anomaly that is over 1.6 kilometres long in strike length and almost 1 kilometre wide.

The gold anomaly is centred about the generally north-northwest trending Sheba-Mitchell gold vein system which has been investigated by Kestrel with a concurrent 2011 trenching and IP geophysical program.

Within this main (30 ppb and greater Au) anomaly, are higher gold (100 ppb Au and greater) areas that form discrete linear north-northwest zones up to 200 metres long.

Gold anomalies (100 ppb and greater Au) have also been found on the northern slopes of the KSD Property in the west central portion of the KSD Property and some 1.5 km away from this location on the northern slopes of Hunker Ridge, in the east central portion of the KSD Property, giving an indication of the large width potential of the gold mineralizing system at the KSD Property.

A further 250 metres along strike from the main gold anomaly to the northern end of the KSD Property are two greater than 100 ppb Au samples which may indicate the system continues further to the north than previously thought.

The highest gold value in soil samples was 4000 ppb Au (re-run assay of 682 ppb Au) at a location 1.6 km from the main gold anomaly in the southern portion of the claims, where much less work has been conducted to date. Several spot anomalies above 60 ppb Au are also distributed from slopes above the tributaries of upper Dominion Creek (an active placer creek) to the southern extent of the KSD Property.

Arsenic (up to 1385 ppm), silver (up to 28.1 ppm), lead (up to 3400 ppm) zinc (up to 712 ppm) and copper (up to 291 ppm) all show a good correlation and zonation about the main Sheba-Mitchell gold vein system.

A grouping of arsenic anomalies is also present in the southern portion of the KSD Property which may represent a southeast extension of the main anomalous gold zone. Additional lead anomalies are present in the northeast and additional zinc anomalies occur in the north-western and south-western corners of the KSD Property. A copper anomaly also parallels the main Sheba-Mitchell trend some 300 metres to the east in a northwest trending zone above the historical Orekon Vein (copper, arsenic and especially lead sulphides are commonly found in gold bearing veins at KSD).

These highly encouraging 2011 results build on and confirm Kestrel's belief that previous findings suggest that the KSD Property possesses one of the largest and best defined gold soil geochemical anomalies in the Klondike area.

1281 auger samples were collected at the KSD Property by All-Terrane Mineral Exploration Services with a QA/QC procedure involving the insertion of known standard values typically followed by "blank" samples at regular intervals. 28 follow up auger samples were collected by L. Gal (P. Geo.) and W. Taylor (P. Geo.). Analytical work was completed at Eco Tech Laboratory Ltd. (Stewart Group Geochemical and Assay) in Whitehorse, Yukon and Kamloops, B.C. and also at ALS Canada Ltd. in North Vancouver, B. C. (both registered for ISO 9001:2008). Soil samples were dried and sieved to -80 mesh and then analysed for 35 elements by aqua regia digestion, ICP-AES finish. Gold was analysed by fire assay with AA finish, with a 30g sample utilized.

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

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.

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.

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. 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. 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 and the uncertainties involved in interpreting exploration results and other geological data. 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.