Otis Gold Closes $4.0 million Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 23, 2011) - Otis Gold Corp. (TSX VENTURE:OOO) ("Otis" or "the Company") wishes to announce it has closed its non-brokered private placement and has issued 5,780,557 units at a price of $0.70 per unit, for aggregate gross proceeds of $4,046,390. Each unit will consist of one common share and one-half of one share purchase warrant (each whole share purchase warrant being a "Warrant"). Each Warrant will be exercisable to purchase one additional common share of the Company for 18 months from closing, at a price of $1.10 per share. The net proceeds from this private placement will be used for general working capital purposes. Finder's fees of $209,985 have been paid in cash and 131,186 finders warrants have been issued to qualified parties. All securities issued have a hold period expiring June 25, 2011.

Additionally, Otis announces that 800,000 stock options having an exercise price of $0.70 per common share have been granted to various directors, officers and consultants of the Company. The options have been granted in accordance with the terms of the Company's 10% rolling Stock Option Plan approved on November 21, 2008 and the Policies of the TSX Venture Exchange.

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.