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Kestrel Gold Announces Grant of Stock Options

January 10, 2011

Kestrel Gold Inc. ( "Kestrel" or the "Corporation") (TSX VENTURE:KGC) announces that, the board of directors resolved on January 7, 2011, to grant 600,000 fully vested stock options to current directors, officers and consultants of the Corporation. The stock options permit each individual to purchase common shares of the Corporation ("Common Shares") at an exercise price of $1.20 per Common Share, a price which equals the close of the market trading price of the Common Shares on January 7, 2011, for a period of five (5) years from the date of issuance.

About Kestrel Gold Inc.

Listed on the Exchange, Kestrel is committed to acquiring, exploring and development 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.

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

For more information, please contact

Kestrel Gold Inc.
Kevin Nephin
604-824-6056 or 604-799-2456
[email protected]