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NEWS

Kestrel Gold Announces Results of Initial Work Program On King Solomon Dome Gold Project, White Gold/Dawson City District, Yukon Territory

December 8, 2010

Kestrel Gold Inc. (“Kestrel” or the “Corporation”) (TSX-V:KGC) is pleased to announce results from its initial work program on the King Solomon Dome Project, located within the heart of the Yukon Territory’s famous Klondike Goldfields, where total placer gold production to date has exceeded 13 million ounces of gold. Work consisted of soil and rock sampling as well as limited trenching and road building, all designed to confirm, and expand upon, previously reported anomalies and mineralization in preparation for a larger program planned for the 2011 season. Program highlights include the location of altered schist grading up to 51,200 ppb gold from within a 1.2 km long open-ended gold soil anomaly, the discovery of a new soil anomaly with values of up to 450 ppb gold coinciding with an area of old hand-dug trenches and pits likely dating from the 1898 Gold Rush, and the definition of a strong un-explored soil anomaly with values of up to 603 ppb gold and 799 ppm arsenic located adjacent to a narrow moderately anomalous trend that was the focus of the previous work in that particular area.

“The ease with which these new showings and anomalies were located helps confirm our belief in the potential of the properties we have acquired, as well as in the exploration team we have assembled. These new results combined with previous results such as 14,700 ppb Au over 1.9m, 40,670 ppb Au (1.3 oz/ton) over 0.7m, and 2242 ppb Au over 18.2m, give us an excellent series of targets for next season. Given that the zones are road accessible work can be carried out in a rapid and cost-effective manner, allowing for the majority of our exploration dollars to be put into the ground,” stated Kevin Nephin, President and Chief Executive Officer. The King Solomon Dome Project consists of 4 distinct properties located within the Tintina Gold Belt that extends across the Yukon and Alaska and contains several major deposits including Pogo, Donlin Creek and Fort Knox, as well as recent discoveries such as White Gold, Rau and Coffee. Project geology consists of various schist and gneiss units with mineralization concentrated within quartz veins, altered and sheared or weakly brecciated host rocks in zones generally parallel, and adjacent, to regional scale thrust faults or associated with intrusive bodies.

About Kestrel Gold Inc.

Kestrel is listed on the TSX-V and is committed to the acquisition, exploration and development of precious metal projects in North and South America. It has an experienced and committed board of directors and the financial ability to aggressively meet its objectives. Technical aspects of this news release have been reviewed and approved by Tim J. Termuende, P.Geo., hereby designated as a qualified person under National Instrument 43-101.

On behalf of the Board of Directors

Signed,

"Kevin Nephin”

President and CEO

For further information, please contact Kevin Nephin at 604-824-6056 or 604-799-2456
Email: kvnephin@telus.net or visit our website at kestrelgold.com

Cautionary Statements

This news release contains "forward-looking statements" within the meaning of applicable securities laws relating to planned exploration activities properties in the Yukon Territory. 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 regarding the availability of equipment and funds to complete future exploration activities. Actual results and developments may differ materially from those contemplated by these statements depending on, among other things, the risks that the Corporation will not proceed with exploration activities for any reason. 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) their securities. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

Not for distribution to U.S. Newswire Services or for dissemination in the United States. Any failure to comply with this restriction may constitute a violation of U.S. Securities laws