Kestrel Gold Inc. Announces Grant of Stock Options

NEWS RELEASE

Kestrel Gold Inc. Announces Grant of Stock Options

September 2, 2011 – Vancouver, British Columbia: Kestrel Gold Inc. (“Kestrel” or the “Corporation”) (TSXV:KGC) announces that the board of directors resolved to grant 100,000 fully vested stock options to a director of the Corporation on September 1, 2011. The stock options permit the individual to purchase common shares of the Corporation (“Common Shares”) at an exercise price of $0.80 per Common Share for a period of five (5) years from the date of grant.

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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