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Kestrel Gold Inc. Announces Grant of Stock Options

September 2, 2011

VANCOUVER, BRITISH COLUMBIA, Kestrel Gold Inc. ("Kestrel" or the "Corporation") (TSX VENTURE: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.