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Kestrel Gold Announces Closing of Private Placement

November 3, 2010

Kestrel Gold Inc.(the "Corporation") (TSX VENTURE:KGC) is pleased to announce that further to its press releases dated September 21, 2010, October 7, 2010 and October 29, 2010, it has successfully completed the final tranche of its previously announced non-brokered private placement (the "Private Placement"). Pursuant to the final tranche of the Private Placement, the Corporation issued 3,482,500 units ("Units") of the Corporation at a purchase price of $0.40 per Unit for total proceeds of $1,393,000.

Each Unit consists of one (1) common share ("Common Share") and one (1) Common Share purchase warrant ("Warrant") of the Corporation. Each Warrant entitles the holder to purchase one (1) Common Share at a purchase price of $0.60 per Common Share exercisable on or before one (1) year from November 3, 2010, (the "Closing Date").

The Corporation paid $1,400 and issued 333,250 Common Shares and 336,250 broker's warrants ("Broker's Warrants") to certain arms length finders in connection with the final tranche of the Private Placement. Each Brokers Warrant entitles the holder to purchase one (1) Unit at a purchase price of $0.40 and is exercisable on or before one (1) year from the Closing Date. 

All Common Shares, Warrants, Broker's Warrants and any Common Shares into which such securities may be converted issued pursuant to this final tranche shall be subject to a four (4) month hold period ending on March 4, 2011. 

The Corporation issued an aggregate of 8,035,500 Units for gross proceeds of $3,214,200 pursuant to the Private Placement and the Corporation paid or issued to certain arms length finders an aggregate of $54,950, 474,800 Common Shares and 631,800 Broker's Warrants as finder's fees for the Private Placement. The net proceeds of the Private Placement shall be used for general working capital purposes. 

The Private Placement is subject to final approval by the TSX Venture Exchange (the "Exchange"). 

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.

Cautionary Statements

This news release contains "forward-looking statements" within the meaning of applicable securities laws relating to the completion of the Private Placement. 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 receipt of all regulatory and stock exchange approvals. Actual results and developments may differ materially from those contemplated by these statements depending on, among other things, the risk of delays in obtaining or failure to obtain regulatory approval. 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.