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KGC.V ·

Kestrel Gold Inc. Announces 2017 Rock Sampling Results of up to 100.1 g/t Au from The Clear Creek Property, Tintina Gold Belt, Yukon

Drill Results Exploration Programs Sampling & Geoscience Results

Kestrel Gold Inc. Announces 2017 Rock Sampling Results of up to 100.1 g/t Au

from The Clear Creek Property, Tintina Gold Belt, Yukon

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR THE DISSEMINATION IN

THE UNITED STATES

CALGARY, Alberta, Sept. 06, 2017 -- Kevin Nephin, President and CEO of Kestrel Gold Inc. (“Kestrel”) (TSX-V:KGC) states:

“Kestrel acquired the Clear Creek property for its potential to host bulk tonnage gold mineralization as well as high grade gold

mineralization, exemplified by historic results from the Eiger Zone including reverse-circulation drill intersections of up to 88.0m

of 0.65 g/t Au bottoming in 3.0m of 1.29 g/t Au and individual grab samples with peak values to 319.5 g/t Au. Kestrel’s 2017

fieldwork encountered a variety of mineralization styles with a peak rock sample value of 100.1 g/t Au confirming our faith in

the property and leading Kestrel to commence planning a reverse circulation drill program on the property.”

The road accessible Clear Creek property is located along the Left Fork of Clear Creek which is the site of extensive past and

present placer mining activity. The property is located approximately 60 kilometres west of Victoria Gold’s Eagle Gold Project

and 55 kilometres southeast of Golden Predator’s Brewery Creek Project.

The 2017 field program focused on the Eiger and Saddle Zones. Work within the Eiger intrusion identified numerous styles of

mineralization including: sheeted quartz-arsenopyrite veins up to 0.60m in width with peak representative grab sample values

of 100.1 g/t Au, sheared diorite with disseminated arsenopyrite with a peak chip sample value of 8.26 g/t Au across 1.0m,

quartz-pyrite-arsenopyrite breccia veins returning peak values of 2.41 g/t Au, and weakly mineralized clay altered diorite which

returned a peak chip sample value of 1.48 g/t Au across 1.3m. Sedimentary rocks adjacent to the west side of the Eiger

intrusive were also found to be significantly gold-bearing. Samples of silicified quartzite cut by sheeted quartz veins returned a

peak value of 7.18 g/t Au, a representative grab sample of bleached quartzite with disseminated pyrite and arsenopyrite

returned 1.8 g/t Au, and a grab sample of a quartz arsenopyrite vein cutting quartzite returned 1.19 g/t Au. A total of 9

reconnaissance style soil samples taken in the area of the sediment-hosted mineralization returned an average of 578 ppb Au

with a peak of 1,550 ppb Au. A combination of historical soil samples with greater than 140 ppb to a peak of 4,383 ppb Au and

the aforementioned bedrock and soil geochemical gold values indicate the Eiger Zone consists of intrusive and sediment

hosted gold mineralization with an aerial extent of approximately 500 by 375 metres.

Work at the Saddle Zone consisted of soil sampling and prospecting which returned peak values to 938 ppb Au from soil

samples and 5.59 g/t Au from rock samples. These results, combined with historical values of from 70 ppb to 2,023 ppb Au in

soil, 0.4 g/t Au over 55.0m and 2.11 g/t Au over 25.0m from trench sampling and 1.24 g/t Au over 22.86m from reverse

circulation drilling, suggest an approximately 300m x 950m east-west trending gold bearing mineralized zone open in both

strike directions.

Elevated gold values from the Clear Creek property are strongly correlative with anomalous bismuth-arsenic values and to a

lesser extent tungsten values. This geochemical signature and associated geological setting indicate the mineralized zones at

Eiger and Saddle fit the intrusion related gold deposit model.

Kevin Nephin, President and CEO of Kestrel Gold, states: “Our 2017 exploration program further defined and constrained the

Eiger and Saddle Zones resulting in the identification of compelling drill targets on both zones which we look forward to being

in position to test with a reverse circulation drill program potentially as early as this fall.”

Carl Schulze, P.Geo., is the Qualified Person, in accordance with NI 43-101 of the Canadian Securities Administrators, and

has reviewed and approved the technical content of this press release.

For additional information please contact Kevin Nephin at 1-604-799-2456.

On behalf of the Board of Directors,

“Kevin Nephin”

President and CEO

Kestrel Gold Corporation.

Forward-Looking Caution :

This news release contains forward-looking statements that are not historical facts.  Forward-looking statements involve risks,

uncertainties and other factors that could cause actual results, performance, prospects and opportunities to differ materially

from those expressed or implied by such forward-looking statements, including statements regarding the mineral potential of

the various properties and projects. Factors that could cause actual results to differ materially from these forward-looking

statements include, but are not limited to, variations in the nature, quality and quantity of any mineral deposits that may be

located, the Company’s inability to reach satisfactory agreements with First Nations to facilitate its exploration and

development plans for the properties and projects, the Company's inability to obtain any necessary permits, consents or

authorizations required for its planned activities, and the Company's inability to raise the necessary capital or to be fully able

to implement its business strategies. The reader is referred to the Company's public disclosure record which is available on

SEDAR (www.sedar.com).  Although the Company believes that the assumptions and factors used in preparing the forward-

looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date

of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all.  Except

as required by securities laws and the policies of the TSX Venture Exchange, the Company disclaims any intention or

obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

This news release does not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of any of

the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful, including any of the securities in the

United States of America. No securities of the Company have been or will, in the foreseeable future, be registered under the

United States Securities Act of 1933 (the “1933 Act”) or any state securities laws and may not be offered or sold within the

United States or to, or for account or benefit of, U.S. Persons (as defined in Regulation S under the 1933 Act) unless

registered under the 1933 Act and applicable state securities laws, or an exemption from such registration requirements is

available.

NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN

POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF

THIS RELEASE.