Kestrel Gold Inc. Announces Insider Sale Transaction

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 29, 2012) -

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Kestrel Gold Inc. ("Kestrel") (TSX VENTURE:KGC) announces that Kevin V. Nephin, the President and Chief Executive Officer of Kestrel, sold 400,000 common shares in the capital of Kestrel ("Common Shares") from his personal holdings through the facilities of the TSX Venture Exchange Inc. at a price of $0.10 per Common Share to clients of a registered dealer. It is intended that Mr. Nephin will be using the net proceeds from this sale to subscribe for 400,000 units of Kestrel at a price of $0.10 per unit pursuant to the non-brokered private placement of Kestrel that was previously announced on September 12, 2012. The units to be acquired by Mr. Nephin, and any securities into which such units may be converted, will be subject to a four (4) month hold period from the date of issue.

About Kestrel

Kestrel is a gold exploration corporation headquartered in Canada. Its principal project is the King Solomon Dome property in Canada's Yukon Territory. Kestrel is listed on the TSX Venture Exchange.

Cautionary Statements

This news release contains "forward-looking information" within the meaning of applicable securities laws. These statements relate to future events or future performance. The use of any of the words "could", "intend", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on Kestrel's current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. In particular, this release contains forward-looking information relating to the use of proceeds from the trade of Common Shares made by an insider of Kestrel. Various assumptions or factors are typically applied in drawing conclusions or making the forecasts or projections set out in forward-looking information. Those assumptions and factors are based on information currently available to Kestrel. The material factors and assumptions include that the Offering is completed. Risk Factors that could cause actual results or outcomes to differ materially from the results expressed or implied by forward-looking information include, among other things: the failure to obtain the required approvals for the Offering in a timely fashion or at all and general economic conditions and market risks. Kestrel cautions the reader that the above list of risk factors is not exhaustive. The forward-looking information contained in this release is made as of the date hereof and Kestrel is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein.