Kestrel Gold Inc. Announces Grant of Stock Options

NEWS RELEASE

Kestrel Gold Inc. Announces Grant of Stock Options

August 5, 2011 – Vancouver, British Columbia: Kestrel Gold Inc. (“Kestrel” or the “Corporation”) (TSXV:KGC) announces that, the board of directors resolved on August 4, 2011, to grant 250,000 stock options to a full time employee of a subsidiary of the Corporation. The stock options vest over a period of twenty four (24) months with the first stock options vesting six (6) months from the date of grant. The stock options permit the individual to purchase common shares of the Corporation (“Common Shares”) at an exercise price of $0.84 per Common Share, a price which equals the close of the market trading price of the Common Shares on August 4, 2011, for a period of five (5) years from the date of issuance

About Kestrel Gold Inc.

Kestrel 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 is listed on the TSX Venture Exchange Inc.

For further information, please contact Kevin Nephin at 604-824-6056 or 604-799-2456 Email: [email protected] or visit our website at kestrelgold.com

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

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