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Kestrel Gold Inc. Announces Geophysical Survey Results for King Solomon Dome Project, Yukon Territory

March 29, 2012

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 29, 2012) -

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.

Kestrel Gold Inc.("Kestrel" or the "Corporation") (TSX VENTURE:KGC) is pleased to announce that results have now been compiled for Kestrel's 2011 Induced Polarization (IP) program on the King Solomon Dome group of properties, south of Dawson City, in the Yukon Territory.

The IP chargeability and resistivity survey was carried out by Peter E. Walcott & Associates Limited on Kestrel's behalf using the "pole-dipole" method, surveying approximately 29 kilometers on the King Solomon Dome ("KSD"), Dominion, Gold Run and Gulf properties in late September to late October, 2011.

The purpose of the geophysical surveying was to test for the presence of sulphide mineralization over geologically favourable areas where previous soil and rock geochemistry yielded anomalous gold values. In addition to defining potential zones of elevated sulphides, the resistivity component of the survey was employed to delineate structures or zones associated with elevated resistivity, potentially associated with silicification.

Result Highlights

  • At KSD a large chargeable IP anomaly centred in the area around the Sheba showing and trending towards the Mitchell Shaft in the north is present over a distance of approximately 1.2 kilometres.
  • The main IP chargeable anomaly at KSD is still open to the north and south and extends to depth.
  • A series of parallel features are observed in the deeper readings adjacent to this large chargeable unit.
  • The apparent chargeability observations correlate well with known surface rock and soil gold geochemical results at KSD.

Commenting on the geophysical results, William Taylor, Vice President of Exploration states; "The large IP anomaly fits well with the geological model for a potentially sizable orogenic type host for the Klondike placer gold historically and currently occurring in streams surrounding KSD. This and the corresponding large geochemical gold anomaly at KSD have been untested by any diamond drilling to date".

In addition, a resistivity anomaly at the Gold Run property at depth may possibly correlate with soil and rock geochemical anomalies at the Doron zone where high grade gold mineralization has been previously sampled at surface.

Follow up Work Planned

Kestrel is currently well into a permitting process for a comprehensive exploration program on all four of its Yukon properties. GeoMinEx Consultants Inc. of Vancouver has been contracted by Kestrel to manage the 2012 field program.

Kestrel's planned 2012 summer long diamond drill program will primarily be focused on the KSD property and will test the geophysical and geochemical anomaly to depth. The anomalies at Gold Run will also be diamond drilled.

Further planned geophysical work at KSD will aid in understanding the structures and geological horizons in the Klondike Schist that concentrate gold mineralization. A magnetometer survey is also planned to be conducted in conjunction with the 'deep' resistivity and chargeability survey. The goal will be to detect and better delineate potential targets from surface to depths in excess of 400 metres.

Further trenching with concurrent mapping and rock sampling over geochemical and/or geophysical anomalies on all four properties is also planned as well as further soil sampling.

Further details of the 2012 exploration program will be released prior to its commencement.

Maps illustrating the content of this release are anticipated to be posted on the Corporation's website in the near future.

Technical aspects of this news release have been reviewed and approved by W. A. Taylor, P. Geo, hereby designated as a qualified person under National Instrument 43-101.

About Kestrel Gold Inc.

Kestrel is a gold exploration company headquartered in Canada. Its two principal projects are the King Solomon Dome property in Canada's Yukon Territory and the Huachi property in Argentina. Kestrel (KGC) is listed on the TSX Venture Exchange.

Cautionary Statements

This news release contains "forward-looking information" within the meaning of applicable securities laws relating to certain explorations activities, including the contemplated future exploration and potential mineralization of the King Solomon Dome group of properties. 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 based on the Corporation's current exploration results, and assumptions related to obtaining sufficient financing and other resources to carry out any future exploration. Actual results and developments may differ materially from those contemplated by these statements depending on, among other things, the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting exploration results and other geological data and the ability of the Corporation to obtain the funds and resources required to carry out further exploration. 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.