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Kestrel Announces Exploration Update

June 1, 2011

Kestrel Gold Inc. ("Kestrel" or the "Corporation") (TSXV:KGC) is pleased to provide an update related to exploration activities on its various mineral properties in Canada.

A. Kestrel Begins Geochemical Soil Surveys at the King Solomon Dome Group of Properties, Yukon

The Corporation announces that the Corporation has begun a geochemical soil survey on the approximate 6,000 hectare King Solomon Dome group of properties. The first phase of geochemical sampling is expected to comprise of over 5,000 auger-collected soil samples.  This will be the first deep auger sampling done on these properties, which technique has been credited with many of the recent Yukon discoveries.

The survey is expected to provide near property-wide regional grid coverage of the Gulf, Gold Run, Dominion and King Solomon Dome properties and will be complimented by more closely spaced soil geochemical grids over areas where gold mineralisation has been documented both historically and more recently in past soil and rock geochemical sampling programs. The Corporation intends to clearly define,  possibly extend localised areas of high-grade gold mineralisation and identify new areas of interest on a broader scale.

All four properties are situated on ridges comprised of a mixed intrusive-sedimentary sequences of the Yukon Tanana Terrane strata, which strata has been cut by fracture-related quartz veins that Kestrel views as being a potential source of the placer gold deposits that have been mined for over one hundred years from creeks surrounding the properties, most notably during the Klondike Gold Rush.

Fieldwork is to be supervised by Carl Schulze, P.Geo, of All-Terrane Mineral Exploration Services, who are conducting the program for the Corporaton. Samples will be shipped for analysis to Eco Tech Laboratories Ltd. in Whitehorse and Kamloops.

B. Kestrel Surrenders Toe Property

The Corporation announces that it has terminated the option agreement, dated May 19, 2010 between BC Gold Corp. as optionor and the Corporation.  As a result, the Corporation has surrendered all of its interests in the mineral claims comprising the previously announced Toe Properties and has no further or residue interest in such properties.

About Eco Tech Laboratory Ltd.

Eco Tech Laboratory Ltd. is registered for ISO 9001:2008 by KIWA International (TGA-ZM-13-96-00) for the "provision of assay, geochemical and environmental analytical services".  Eco Tech also participates in the annual Canadian Certified Reference Materials Project (CCRMP) and Geostats Pty bi-annual round robin testing programs. The laboratory operates an extensive quality control/quality assurance program, which covers all stages of the analytical process from sample preparation through to sample digestion and instrumental finish and reporting.

About Kestrel Gold Inc.

Kestrel Gold Inc. is a gold exploration company headquartered in Canada.  Its principal projects include the King Solomon Dome properties in Canada's Yukon Territory and the Huachi and Antofalla properties, in Argentina. Kestrel Gold (KGC) is listed on the TSX Venture Exchange Inc.

For further information, please contact Kevin Nephin at 604-824-6056 or 604-799-2456

Email: [email protected] or visit our website at kestrelgold.com

Cautionary Statements

This news release contains "forward-looking statements" within the meaning of applicable securities laws relating to certain explorations activities.  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 related to sufficient financing and other resources to carry out planned exploration programs.  Actual results and developments may differ materially from those contemplated by these statements depending on, among other things, insufficient funds or other resources to carry out the planned exploration programs.  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.