Pilot Gold Reports Results From Core Drilling At Kinsley Mountain

VANCOUVER, BC - Pilot Gold reported strong intervals of gold mineralization in step-out holes at the Kinsley Mountain project, including 5.48 grams per tonne gold over 20.4 metres in hole PK014C, located 150 metres northeast of hole PK002 which returned 6.23 g/t gold over 8.7 metres.

"These results from the core drilling portion of our 2012 program demonstrate Kinsley's ability to host gold mineralization to the north of the mined pits and previously identified gold trend. Future drilling will continue to target frontier areas to the northeast and southwest of the mine to further expand the gold mineralized footprint and identify the high grade structures we are beginning to see," said Moira Smith, Chief Geologist.

Assays from the 14 hole diamond core drilling program returned mineralization in step-out holes 100 metres to 150 metres north of the historic main pit area, where Pilot Gold's 2011 drilling was focused.

Highlights from the 2012 core drilling program include: 5.48 g/t gold over 20.4 metres, including 16.43 g/t gold over 5.5 metres in PK014C; 1.40 g/t gold over 10.5 metres in PK019C; and, 0.92 g/t gold over 28.8 metres in PK031C.

Detailed mapping over the entire Kinsley Mountain claim block has identified a number of north, northeast and northwest-trending high-angle faults with jasperoid alteration up to 7 km north of the mine. Jasperoids are an important structural and alteration marker of Carlin-style sediment-hosted deposits, as they are often indicative of deep hydrothermal mineralizing systems. Rock samples from the Kinsley jasperoids have returned up to 2.8 g/t Au and highly anomalous pathfinder elements consistent with the presence of sediment-hosted gold mineralization at depth.

The 2012, 12,000-metre drill program commenced in March, with one diamond core drill and one RC drill. Drilling is primarily focused on expanding the mineralized footprint identified by previous operators in the 1980s and 1990s, and following up on the high grade intercepts from Pilot Gold's initial drill program in late 2011. The majority of holes drilled to date by Pilot Gold have encountered gold mineralization, with deeper RC holes targeting gold in deeper stratigraphic intervals than were previously tested.

In conjunction with the 2012 drill program, regional exploration, data compilation and modeling, and environmental studies are underway. Activities include rock chip sampling, detailed geologic mapping and digitizing and 3D modeling of historic data including over 1,100 drill holes and 72,000 blast hole samples leading to the first comprehensive 3D model for the project. The model allows for more accurate targeting of mineralization and potential high-grade structures beyond the limit of historic workings. Additionally, a Plan of Operations permit application was submitted to U.S. Bureau of Land Management (BLM) which will allow for expanded exploration activities beyond the previously disturbed areas.

Exploration continues with one reverse circulation drill, operating over a wider area along the northern margin of the previously-defined zone of gold mineralization. Results from the RC portion of the program are currently pending.