Kestrel Announces Completion of Geophysical Survey at King Solomon Dome Property

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 28, 2012) -

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Kestrel Gold Inc. ("Kestrel" or the "Corporation") (TSX VENTURE:KGC) announces the completion of a geophysical survey (the "Survey") at Kestrel's King Solomon Dome Property south of Dawson City, in the Yukon Territory ("KSD").

The Survey is intended to map the geophysical properties of resistivity and chargeability of the subsurface down to a depth of 500 metres. SJ Geophysics Ltd. of Delta, British Columbia using their new Volterra-3DIP system in conjunction with a magnetometer survey over a grid approximately 1.6 km by 1.6 km, has been focusing on the area encompassing the Sheba and Mitchell workings which lie within a large gold geochemical soil anomaly. This second phase of deeper geophysical work is envisaged to give a much clearer (3D) picture of the morphology of structures, contrasting lithologies and additional potential drill targets at greater depths. The Survey follows on from the first phase of geophysical work conducted in 2011 which was successful in outlining a large chargeable IP anomaly centred in the area around the Sheba showing and trending towards the Mitchell Shaft to the north over a distance of approximately 1.2 km open along strike and extending to depth.

William Taylor, the Vice President Exploration of Kestrel comments: "We know from work done to date the importance of regional scale NNW trending D4 structures at KSD in relation to Klondike gold mineralization. This survey will help us better understand the other factors that have concentrated the gold and other path finder elements in this particular area where the signatures are so relatively high."

A number of drill targets have already been outlined at KSD and the results of the Survey are anticipated to be received in advance of the Corporation's planned 2012 diamond drill program.

About Kestrel Gold Inc.

Kestrel is a gold exploration company headquartered in Canada. Its two principal projects are the King Solomon Dome project in Canada's Yukon Territory and the Huachi project in Argentina. Kestrel (KGC) is listed on the TSX Venture Exchange.

Technical aspects of this news release have been reviewed and approved by W.A. Taylor, P.Geo., hereby designated as a qualified person under National Instrument 43-101.

Cautionary Statements

This news release contains "forward-looking information" within the meaning of applicable securities laws, including with respect to the scope and timing of the Survey, potential exploration results mineralization of KSD and anticipated future exploration of KSD. 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 based anticipated size and scope of the Survey, the timing of the completion of the Survey and the future exploration activities, potential mineralization of KSD and assumptions related to obtaining sufficient financing and other resources to carry out future exploration. Actual results and developments may differ materially from those contemplated by these statements depending on, among other things, the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting exploration results and other geological and geophysical data and the ability of the Corporation to obtain the funds and resources required to carry out further exploration. 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) its securities.