Otis Gold Corp.
TSX VENTURE : OOO
PINK SHEETS : OGLDF

Otis Gold Corp.

March 07, 2011 08:02 ET

Otis Hits Gold in Two of Five Targets at Dog Bone Ridge

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 7, 2011) - Otis Gold Corp. (TSX VENTURE:OOO)(PINK SHEETS:OGLDF) ("Otis" or the "Company") is pleased to announce that it has intercepted a near-surface gold interval containing 9.14 m grading 1.32 g/t Au at a depth of 24.1 m to 33.2 m in hole OKC-242 located on the most northerly of five large geophysical anomalies identified by the recent CSAMT program at its Dog Bone Ridge target at the Kilgore Gold Project, Clark County, Idaho. Otis discovery hole 10 OKC-242 is located as an offset to historic Kilgore Gold hole KG-04-02 that contains 51.8 m grading 1.25 g/t Au from 112.8 m to 164.6 m. The size of this target is in excess of 1,100 metres long and 200 metres wide.

Additionally, Otis hole OKC-240, drilled to test a second 1,000 metre-long CSAMT anomaly, contains 138 metres of continuous anomalous gold mineralization. A historic Echo Bay hole, located 300 metres to the northwest of OKC-240, intercepted 3.1 m at a grade of 1.47 g/t Au at the edge of the same anomalous dike. More exploration drilling is slated on these two significant kilometer-long geophysical anomalies during the 2011 Otis drill program.

Hole OKC-242 is considered a discovery hole for Otis based on the bulk-tonnage-style of mineralization encountered in the interval and the distinct similarity to the mineralization found at the Company's Mine Ridge gold deposit, located 1,300 metres to the northeast of Dog Bone Ridge.

"These holes are significant considering the size, extent and wide-open nature of the CSAMT anomalies that the holes are associated with and the strong similarity to and correlation with alteration type, mineralization style, and host rocks composing our nearby flagship Mine Ridge gold deposit," notes Otis President & CEO Craig Lindsay. "These are two of five anomalies to be further explored, and three of the anomalies are larger in area by a factor of two or more compared to the size of the existing Mine Ridge Deposit. Holes OKC-240 and OKC-242 are first steps towards identifying and drilling out additional deposits at the Kilgore Gold Project, and cap off a transformational 2010 drill program for Otis. We look forward to an extensive drill program at both Mine Ridge and Dog Bone Ridge in 2011, as well as other emerging drill targets at Kilgore."

As noted, Otis discovery hole 10 OKC-242 is located as an offset to historic Kilgore Gold hole KG-04-02 drilled in 2004 that contains 51.8 m grading 1.25 g/t Au from 112.8 m to 164.6 m. Of importance is that KG-04-02 was drilled prior to Otis' determination that the area is underlain by the most northerly of five sizeable CSAMT anomalies underlying the Dog Bone Ridge sinter cap and gold target area. Results of Otis discovery hole 10 OKC-242 are critically important because they show that mineralization is associated with the previously unrecognized CSAMT anomaly that has an areal extent (20.6 hectares) greater than that currently defining Otis' nearby Mine Ridge deposit (15.0 hectares) and that the gold mineralization occurs at much shallower depths than previously thought possible.

Detailed logging of 10 OKC-242's mineralized interval reveals that the gold is spatially associated with quartz microveining within fine-grained, argillically altered tuffaceous material directly below siliceous sinter cap material and above flow-banded rhyolite dike or dome material. Similarly, gold mineralization in Kilgore Gold's historic Dog Bone Ridge hole KG-04-02 and at Otis' nearby Mine Ridge deposit is intimately associated with dikes of rhyolitic to andesitic composition and local quartz microveining (see Otis October 21, 2009, February 9, 2010 and September 15, 2010 News Releases for further information regarding this target).

Otis' Dog Bone Ridge gold target has experienced only a limited amount of historic drilling. Additionally, Otis' five widely scattered holes have only begun to initially test four of the five CSAMT anomalies underlying the area. As a result, a substantial area with significant potential for the discovery of additional mineralization remains to be drill tested, particularly in the discovery CSAMT anomaly area, which has the size potential to contain another deposit as big as, or larger than, Mine Ridge. Otis geologists are presently formulating an extensive, 2011 follow-up drill program at the discovery area, the related CSAMT anomaly underlying it, and the additional four CSAMT anomalies.

Locations of the holes drilled at Dog Bone Ridge, which total 1,144 metres of drilling, along with those for the thirty-five 2010 Mine Ridge holes and its sixteen Mine Ridge 2008 and 2009 holes, are shown in drill-hole location and target maps available on the Company's website at www.otisgold.com/projects/kilgore/.

Analysis and Otis QA/QC Program

All assay work was performed by ALS Chemex Labs, Vancouver, B.C., which has ISO 9001:2008 quality management system certification and ISO 17025:2005 Vancouver Lab technical capability accreditation. A 50-gram pulp of all samples was assayed for gold by Fire Assay/AA finish methods. Certified reference materials, duplicates, and blanks were inserted into the sample stream for quality control.

The true bulk-tonnage width of the mineralized interval is estimated to be between 90% and 100% of the drilled interval, based on its estimated dip, association with diking, and potential continuity of mineralization between drill holes. The HQ3-size core drilling was performed by Timberline Drilling, Inc., Coeur d'Alene, Idaho, employing two Sandvik DE-140 core drills outfitted with a triple-tube core recovery system and face-discharge bits.

John R. Carden, Ph.D., Lic. Geo., a Qualified Person as defined by National Instrument Policy 43-101, is responsible for the technical information contained in this News Release.

About the Company

Otis is a resource company focused on the acquisition, exploration, and development of precious metal deposits in Idaho, USA. Otis is currently developing its flagship property, the Kilgore Gold Project, located in Clark County, Idaho.

ON BEHALF OF THE BOARD

Craig T. Lindsay, President and CEO

The forward-looking information contained in this press release is made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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