Kestrel Gold Announces Appointment of Vice President, Exploration and Grant of Stock Options

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 17, 2011) -

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Kestrel Gold Inc. (the "Corporation") (TSX VENTURE:KGC) is pleased to announce that William Taylor has been appointed as Vice President, Exploration of the Corporation effective immediately.

Mr. Taylor received a B.Sc. honours degree in geology from the University of London in 1983, as well as winning two university awards for outstanding fieldwork. Later that year he moved to Canada and began a career in the mining industry, first working for Rio Algom and then Kerr Addison Mines. William has worked as a professional geological consultant for a number of junior mining companies as well as working as a geologist for the Ministry of Mines B.C. (MEMPR). He has been author and co-author of a number of published papers for the MEMPR and was co-author of open file map "Lode Gold and Silver in South Central British Columbia".

As a founding director of Luminai Drafting Ltd., William has assisted in geological compilations and corporate presentations for over 140 mineral exploration and geo-science companies working throughout the world giving him excellent exposure and insight to a broad range of mineral deposit types.

More recently Mr. Taylor obtained a distinction masters degree in Engineering Geology at the University of Portsmouth UK, subsequently working for WS Atkins (UK) on a number of projects, including a high profile international expert witness case.

The board of directors of the Corporation has granted Mr. Taylor stock options to purchase 400,000 common shares of which 100,000 vested on the date of grant, 100,000 will vest six months from the date of grant and 200,000 will vest one year from date of grant. The stock options permit Mr. Taylor to purchase common shares of the Corporation ("Common Shares") at an exercise price of $0.77 per Common Share, a price which equals the close of the market trading price of the Common Shares on May 16, 2011, for a period of five (5) years from the date of issuance.

About Kestrel Gold Inc.

The Corporation is a gold exploration company headquartered in Canada. Its principal projects are the King Solomon Dome and the Toe properties in Canada's Yukon Territory and, upon completion of the Corporation's previously announced acquisition of Rio Diablillos S.R.L., a private Argentina body corporate, is anticipated to include the Huachi mining property and the Antofalla property, in Argentina. The Corporation is listed on the TSX Venture Exchange under the symbol KGC.