New Drilling Intersects Significant Gold

VANCOUVER, BC – Pilot Gold Inc. reported that new drilling at Kinsley Mountain’s Western Flank target has intersected significant gold in drill holes spaced over a 500-metre trend that remains open to the north and south.

Hole PK091CA, which returned 8.53 g/t gold (Au) over 36.6 meters, is at the centre of the trend (see press release dated November 18th, 2013). New drill highlights along trend include: 5.00 g/t Au over 7.6 meters and 4.71 g/t over 7.3 meters in PK096C, 2.50 g/t Au over 24.4 meters in PK104C, 6.34 g/t Au over 5.9 meters in PK106C, including 9.91 g/t Au over 3.4 meters.

Stratigraphic units hosting the gold in the Western Flank zone rise to the surface, 500 meters to the south at the newly identified Right Spot target. Mapping and rock sampling at the Right Spot demonstrate a 250-metre north-northeast zone of surface jasperoids returning 1-5 g/t Au in grab samples. These features suggest that the Right Spot surface mineralization may result in a gold mineralized zone stretching more than one kilometer in length.

"The high-grade results from the Western Flank and recent fieldwork in the Right Spot area suggest that the Western Flank and Right Spot are part of a connected gold mineralized system, similar in nature to the system our team defined at Long Canyon," said Moira Smith, Chief Geologist, Pilot Gold. "We will begin our 2014 drill program in late January by prioritizing further drilling at the Western Flank and testing the surface mineralization at the Right Spot and other areas to the south."

Pilot Gold drilled approximately 14,200 meters in 58 holes in its 2013 Kinsley program, with assays pending for three holes.

The Western Flank target is located 550 meters northwest of the past-producing pits at Kinsley. It comprises north-northeast-plunging zones of mineralization hosted in up to three receptive stratigraphic horizons intersected by one or more steep breccia zones that may have served as conduits and porous hosts for gold mineralization. Pilot Gold drilling has shown that high-grade gold also occurs within a lower limestone unit that was not identified or tested by previous operators.

The Western Flank area hosts numerous features that are similar to the geology at the Long Canyon deposit, including evidence of potential boudinage of a 100-meter-thick dolomite horizon and focusing of gold mineralization in and around this boudin neck area, which strikes north-northeast. Long Canyon was explored and developed by Pilot Gold’s Kinsley team, prior to the project’s sale as part of Newmont Mining Corporation’s $2.3 billion acquisition of Fronteer Gold.

Kinsley Mountain hosts near-surface mineralization similar to other Carlin-style, sediment-hosted gold systems along a 2.2 kilometer, SE-NW strike extent. The property consists of 380 claims and 7,650 acres on U.S. Bureau of Land Management ("BLM") land and hosts a past-producing mine with an extensive exploration database and numerous, untested gold targets. Gold mineralization is primarily oxidized and occurs in strataform zones and fault collapse breccias within a sequence of Cambrian-Ordovician shelf carbonates. At depth, Pilot Gold has also drilled high-grade transitional and sulfide mineralization.

Kinsley Mountain is an early-stage exploration project and does not contain any mineral resource estimates as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"). The potential quantities and grades disclosed herein are conceptual in nature and there has been insufficient exploration to define a mineral resource for the targets disclosed herein. It is uncertain if further exploration will result in these targets being delineated as a mineral resource. There are furthermore no assurances that the geological similarities to the Long Canyon project or other projects displaying high-grade collapse breccia zones will result in the establishment of any resource estimate at Kinsley’s Western Flank, or, if found to exist, that it will be of a similar grade or quantity that is found at Long Canyon or those other deposits, or that the Kinsley project can be advanced in a similar timeframe.

Intor Resources Corporation, a subsidiary of Nevada Sunrise Gold Corp., is the Company’s joint venture partner at Kinsley. Pilot Gold holds a 78% interest in Kinsley and sole-funded a $3.4-million program in 2013.