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September 15, 2010 – Vancouver, British Columbia: Kestrel Gold Inc.(the “Corporation”) (TSXV: KGC) is pleased to announce that the Corporation has entered into a letter of intent (the “Letter of Intent”), pursuant to which the Corporation proposes to acquire all of the issued and outstanding shares of Rio Diablillos (S.R.L.), a private corporation, incorporated under the laws of Argentina (the “Acquisition”), which holds an option and right to acquire a one hundred (100%) interest in 32 mining claims in one contiguous block (540 hectares) located in the Andean Pre-Cordillera of San Juan Province, Argentina (the “Huachi Mining Properties”).