Kestrel Gold Inc. Announces Insider Sale Transaction

October 29, 2012 – Vancouver, British Columbia: Kestrel Gold Inc. (“Kestrel”) (TSXV: KGC) announces that Kevin V. Nephin, the President and Chief Executive Officer of Kestrel, sold 400,000 common shares in the capital of Kestrel (“Common Shares”) from his personal holdings through the facilities of the TSX Venture Exchange Inc. at a price of $0.10 per Common Share to clients of a registered dealer. It is intended that Mr. Nephin will be using the net proceeds from this sale to subscribe for 400,000 units of Kestrel at a price of $0.10 per unit pursuant to the non-brokered private placement of Kestrel that was previously announced on September 12, 2012. The units to be acquired by Mr. Nephin, and any securities into which such units may be converted, will be subject to a four (4) month hold period from the date of issue.

For further information, please visit our website at www.kestrelgold.com  or contact:

Kevin Nephin
President & CEO
Office (604) 824-6056
kvnephin@telus.net

And/or

Cameron MacDonald
Macam Investor Relations
Office (403) 452-6600
cmacdonald@macamgroup.com

Cautionary Statements

This news release contains “forward-looking statements” within the meaning of applicable securities laws.  Readers are cautioned to not place undue reliance on forward-looking statements.  In particular, forward-looking statements in this news release include, but are not limited to the use of proceeds from the Private Placement, the completion of an additional tranche of the Private Placement and the receipt of Exchange approval for the Private Placement.  Forward-looking statements are based on certain key assumptions made by the Corporation, including assumptions regarding the receipt of all regulatory and stock exchange approvals and that the proceeds will be used as currently intended.  Actual results and developments may differ materially from those contemplated by these statements depending on, among other things, the risk of delays in obtaining or failure to obtain regulatory approval and general economic, market and business conditions. 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.

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.

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