September 21, 2010 - Vancouver, British Columbia: Kestrel Gold Inc.(the "Corporation") (TSXV: KGC) is pleased to announce that the Corporation proposes to complete a non-broker private placement of up to 10,000,000 units ("Units") of the Corporation at a purchase price of $0.40 per unit for total proceeds of $4,000,000. Each Unit shall consist of one (1) common share and one (1) share purchase warrant ("Warrant") of the Corporation. Each full Warrant shall entitle the holder to purchase one (1) Common Share of the Corporation at a purchase price of $0.60 per Common Share exercisable on or before one (1) year from the date of issuance of the Warrants. In certain instances the Corporation may pay a 7% cash commission or a 10% commission payable in Common Shares of the Corporation valued at the same price as the private placement plus 10% brokers warrants to purchase Units of the Corporation at the same price of the Units are being purchased for under the private placement. All Common Shares, Warrants and any Common Shares into which such securities may be converted shall be subject to a four (4) month hold period from the closing date of the proposed private placement. Proceeds from the private placement shall be used to fund obligations under the previously announced loan arrangement and the Option and Purchase Agreement relating to Rio Diablillos (S.R.L.) and for general working capital purposes.