Pinecrest Completes Qualifying Transaction and Concurrent Private Placement

PINECREST RESOURCES LTD.

1820-999 West Hastings Street

NEWS RELEASE

July 12, 2011

PINECREST COMPLETES QUALIFYING TRANSACTION AND CONCURRENT PRIVATE PLACEMENT

Pinecrest Resources Ltd. (TSXV: PCR.P) (“Pinecrest”) is pleased to announce that it has completed the acquisition of the option (the “Option”) to acquire a 50% interest in the Espiritu Property located in Sahuaripa, Sonora Mexico from Kootenay Gold Inc. (“Kootenay”) pursuant to an option agreement dated February 28, 2011 among Pinecrest, Kootenay and Minera J.M., S.A. de C.V., Kootenay’s wholly-owned subsidiary.

In conjunction with the acquisition of the Option, Pinecrest has completed a concurrent private placement (the “Private Placement”) on a non-brokered basis and raised gross proceeds of $770,000 by the issuance of an aggregate of 3,500,000 units (each a “Unit”) of Pinecrest at a purchase price of $0.22 per Unit. Each Unit consists of one common share of Pinecrest and one transferable common share purchase warrant (each a “Warrant”). Each Warrant entitles the holder to purchase one common share of Pinecrest at an exercise price of $0.30 per share at any time until July 12, 2014. All securities issued pursuant to the Private Placement are subject to a four month hold period which expires on November 13, 2011. The acquisition of the Option by Pinecrest and the completion of the concurrent Private Placement represents Pinecrest’s qualifying transaction under the policies of the Exchange.

Concurrently with the completion of the acquisition of the Option, Edward Farrauto resigned as Chief Financial Officer of Pinecrest and was replaced by Kristian Dagsaan, and Ryan King resigned as Corporate Secretary of Pinecrest and was replaced by Douglas Forster.

In addition, the TSX Venture Exchange (the “Exchange”) has accepted Pinecrest’s 20% fixed stock option plan (the “Plan”), subject to receipt of shareholder approval, which will be sought at Pinecrest annual and special meeting to be held on July 13, 2011. The Plan will allow Pinecrest to grant options in an amount not to exceed 2,220,000 common shares, including the existing 740,000 common shares currently subject to outstanding stock options, and including the 100,000 and 90,000 common shares which may be issued upon the exercise of stock options, at an exercise price of $0.30 per share, granted on today’s date to Kristian Dagsaan, Chief Financial Officer, and Kimberly Williams, a director of Pinecrest, respectively, which stock options will expire on July 12, 2016.

The common shares of Pinecrest are expected to commence trading on Tier 2 of the Exchange under the symbol PCR on July 14, 2011.

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

ON BEHALF OF THE BOARD

“Edward Farrauto” (signed)

Edward Farrauto, Chief Executive Officer

For further information contact Edward Farrauto, Chief Executive Officer of Pinecrest Resources Ltd., at 604-687- 3992.

Forward-Looking Statements: Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed and elsewhere in the company’s periodic filings with Canadian securities regulators. Such information contained herein represents management’s best judgment as of the date hereof based on information currently available. Pinecrest does not assume the obligation to update any forward-looking statement.