Pilot Gold Earns 51% Interest in Kinsley Mountain Gold Property

VANCOUVER, BC - Pilot Gold Inc. reported that it has completed its earn-in to 51% of the Kinsley Mountain gold property and has elected to increase its interest to 65% within 5 years.

Over the past seven months, we have tested some key exploration concepts at Kinsley Mountain with encouraging results, and have quickly earned a controlling interest in this project. Results from our Phase 1 program included 5.91 g/t gold over 18.4 metres starting at a depth of 42.7 metres in drill hole.

The Kinsley Project in northeastern Nevada is the site of a past-producing, open pit, oxide heap leach mine. Building on an extensive historical exploration archive, Pilot Gold is focusing its efforts on testing numerous targets at different stratigraphic levels both proximal to, and to the north of, the historic pits. Our 2012 exploration program commenced on March 20th with 4,000 metres of a planned 12,000 metres completed the first week of May. Assays for all 2012 drill holes are pending. In addition, an extensive geochemistry and geological mapping program will take place outside of the historic mine area to identify additional drill targets.

Under the terms of the earn-in agreement, Pilot Gold was required to spend $US 1.18 million in exploration by March 30, 2013 to earn the initial 51% interest. After meeting these requirements, the project will be held in a joint-venture company owned 51% by Pilot Gold and 49% by Intor Resources Corporation a subsidiary of Nevada Sunrise Gold Corporation. Pilot Gold has elected to increase its interest to 65% by incurring an additional $US 3-million in exploration expenditures within 5 years.

Pilot Gold is a gold exploration company with interests in three key assets: the Kinsley Mountain project in Nevada and the Halilaga and TV Tower projects in Turkey. In addition, Pilot Gold has a pipeline of 15 exploration-stage Nevada projects characterized by large land positions and district-wide potential both on and off major gold trends.

The company's address is Suite 1650, 1055 West Hastings, Vancouver, BC V6E 2E9, 604.632.4677, fax: 604.632.4678, email: [email protected].