Dr. Moira Smith reports

KAYALI NEXT UP FOR PILOT GOLD AT TV TOWER

Pilot Gold Inc. has commenced a 7,500-metre drilling program on the Kayali target at the TV Tower project in northwestern Turkey. More than 925 metres have been drilled so far with assays pending. Kayali is the second high-priority target to be drill tested at TV Tower in 2013, and expands the project's exploration program to include a bulk-tonnage, oxide gold system.

Initial drilling in 2010 revealed near-surface gold mineralization with oxidation to between 150 and 200 m depth at Kayali. Drill highlights from the 2010/2011 program included:

• 0.87 g/t gold (Au) over 114.5 m starting from 4.5 m depth at KYD-01;
• Including 2.85 g/t Au over 15.4 m;
• 0.78 g/t Au over 88.6 m starting from 0.4 m depth at KYD-02;
• Including 1.98 g/t Au over 22.5 m.

"Our team has had great success defining deposits similar to Kayali in the Biga peninsula, namely Agi Dagi and Kirazli. We are looking forward to demonstrating the potential of this target as we ramp up the 2013 drilling program," said Dr. Moira Smith, chief geologist, Pilot Gold.

Kayali exploration model refined

The exploration model has been significantly refined by Pilot relogging core from the first round of drilling at Kayali. Gold mineralization is hosted within a tabular vuggy silica body, with elevated grades associated with more permeable stratigraphic horizons (ledges) and steep fault zones (ribs). At Kayali, the silica ledge is contained within a sequence of volcaniclastic rocks that is also highly oxidized. The drilling program will infill areas along a well-defined (by surface mapping and sampling) but sparsely drilled rib along the southern margin of the silica cap, and will test for parallel ribs within the main silica ledge to the north. Drill hole orientations are now designed to intersect the interpreted structural fabric that controls higher-grade mineralization at high angles to core.

Past drilling encountered a blanket of supergene copper mineralization immediately beneath the silica cap in a number of holes, including 0.66 per cent copper over 56 metres in KYD-03. This zone of copper mineralization will also be targeted in the 2013 program. The total area to be tested in this phase of drilling is 400 metres long in an east-west direction and 300 metres north-south.

Reinterpretation from relogged drill core and new geological mapping have led to identification of the same zone of silicified volcaniclastic rocks extending to the north of the Kayali target. This may significantly increase the potential size of the area prospective for oxide gold mineralization. Additional surface mapping and sampling are currently under way in order to better define the limits of the Kayali hydrothermal system.

The Kayali target is located in the southern portion of the TV Tower property approximately eight kilometres south of the high-grade KCD target. Epithermal style systems like Kayali can be characterized by wide intervals of near-surface, oxidized gold mineralization that are amenable to open-pit mining and treatment by low-cost heap leaching. Nearby similar projects include Alamos Gold's Kirazli and Agi Dagi deposits. Global projects of this type include Lydian's Amuslar project (Armenia), Alamos's Mulatos mine (Mexico) and Newmont's Yanacocha mine (Peru).

A total of 35 diamond drill holes totalling 8,174 metres were drilled in the Kayali area in 2010 and 2011.

The proximity to Alamos Gold's Kirazli and Agi Dagi projects does not mean Pilot Gold will obtain similar results at Kayali. TV Tower 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. 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 yielding a mineral resource.

About TV Tower

TV Tower is a joint venture between Pilot Gold (40 per cent) and Teck Madencilik Sanayi Ticaret AS (TMST) (60 per cent), a Turkish subsidiary of Teck Resources Ltd. Pilot Gold is project operator at TV Tower and can increase its interest in the project to 60 per cent, through sole financing of exploration over a three-year period. (See press release dated June 21, 2012, for full details of the agreement terms.)

Located on the Biga peninsula in northwest Turkey, TV Tower encompasses 71 square kilometres. It contains a large number of targets ranging from high- and low-sulphidation epithermal gold-silver to porphyry gold-copper. The project has an extensive road network and targets to date all lie on land administered by Turkey's Ministry of Forestry. It is located immediately west of the Kirazli gold project (Alamos Gold) and approximately 10 kilometres northwest of the Halilaga copper-gold project (Teck/Pilot Gold).

Subject to permitting, Pilot Gold has budgeted for 30,000 metres of drilling at TV Tower in 2013, including a second-year 15,000-metre drill program launched at the KCD target on March 23, 2013. Pilot Gold also plans to drill additional targets throughout the year upon receipt of permits.

Dr. Moira Smith, PhD, PGeo, chief geologist, Pilot Gold, is the company's designated qualified person for this news release within the meaning of NI 43-101 and has reviewed and validated that the technical information contained in the release is accurate. Drill samples and analytical data at TV Tower relating to the prior exploration campaigns were collected under the supervision of TMST, using industry standard QA/QC (quality assurance/quality control) protocols. Dr. Smith has not verified all the data; however, TMST has given her no reason to doubt their authenticity. Dr. Smith has consented to the inclusion of the technical information in the form and context in which it appears in this news release.

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