Mr. Patrick Reid of Pilot Gold reports

PILOT GOLD RECEIVES PLAN OF OPERATIONS PERMIT FOR KINSLEY MOUNTAIN, NEVADA

Pilot Gold Inc. has obtained a key permit for Kinsley Mountain, Nevada, allowing the company to ramp up drilling to test high-priority targets across the core group of claims.

The U.S. Bureau of Land Management's (BLM) record of decision confirmed approval for a plan of operations for Kinsley Mountain on Aug. 30, 2013. The approved plan of operations allows Pilot Gold up to 70 acres for exploration and development drilling on the core group of claims, including the Western Flank, Candland Canyon and extensions trending north-northeast and southwest of the historic pits.

Pilot Gold has completed 2,858 metres in 12 RC holes to date in 2013 at Kinsley using a single drill operating under an existing permit. The company will add two more drills in coming weeks to the program and expects to complete 20,000 metres of drilling in the current program.

Drill highlights from 2011 to 2012 include:

• Western Flank (550 metres northwest of nearest historic pit):
  • 9.5 grams per tonne gold over 4.57 metres in PK-67;
  • 6.03 g/t gold over 13.7 metres in PK-61.
• Main pit extension:
  • 5.48 g/t gold over 20.4 metres in PK-14C;
  • 6.23 g/t gold over 8.7 metres in PK-02C.
• Candland Canyon (250 metres northeast of nearest historic pit):
  • 1.08 g/t gold over 10.7 metres in PK-39.

For a table of Kinsley drill results (2011-2012), including non-reportable intercepts, please go to the company's website.

For a property map outlining the area covered by the plan of operations, please go to the company's website.

The company plans to submit an amendment to the plan of operations to include additional target areas, including the entire northern portion of the Kinsley Range. Exploration work completed by Pilot Gold in 2012 delineated strong targets based on soil and rock anomalies combined with structural and stratigraphic mapping in both soil and rock sampling seven kilometres to the north of the historic pits.

Pilot Gold increases interest in Kinsley

Intor Resources Corp., a subsidiary of Nevada Sunrise Gold Corp., is the company's joint venture partner at Kinsley. On Aug. 14, 2013, Intor informed Pilot Gold that it had elected not to finance its portion of the approved 2013 budget for Kinsley Mountain. As a result, and further to the company having sole financed the requisite reclamation bond, Pilot Gold's interest in Kinsley has increased from 65 per cent to approximately 78 per cent.

Pilot Gold is now financing a modified $3.4-million program in 2013 in its entirety.

About Kinsley

Kinsley Mountain hosts near-surface mineralization similar to other Carlin-style, sediment-hosted gold systems along a 2.2-kilometre, southeast-northwest strike extent. The property consists of 380 claims and 7,650 acres (3,095 hectares) on BLM land and hosts a past-producing mine with an extensive exploration database and numerous, untested gold targets. Gold mineralization is oxidized, and occurs in stratabound zones and fault collapse breccias within a sequence of Cambrian-Ordovician shelf carbonates. At depth, Pilot Gold has also drilled high-grade transitional and sulphide mineralization.

Vance Spalding, BSc, CPG, Pilot Gold vice-president, exploration, is the company's designated qualified person for this news release within the meaning of National Instrument 43-101 standards of disclosure for mineral projects and has reviewed and validated that the information contained in the release is accurate. Drill composites were calculated using a cut-off of 0.30 g/t. Drill intersections are reported as drilled thicknesses. True widths of the mineralized intervals are interpreted to be between 30 to 100 per cent of the reported lengths. Drill samples were assayed by ALS Chemex (ISO 9001:2000) in Reno, Nev., for gold by fire assay of a 30-gram (one-assay-ton) charge with an AA finish, or if over 5.0 g/t were reassayed and completed with a gravimetric finish. For these samples, the gravimetric data were utilized in calculating gold intersections. Quality assurance/quality control included the insertion and continual monitoring of numerous standards and blanks into the sample stream, and the collection of duplicate samples at random intervals within each batch. Selected holes are also analyzed for a 51-multielement geochemical suite by ICP-MS. Data citing ounces mined from historical production are attributed to the Metals Economics website.

Kinsley Mountain is an early-stage exploration project and does not contain any mineral resource estimates as defined by 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.

Further information is available in the technical report entitled "Technical report on the Kinsley project, Elko county, Nevada, United States," effective Feb. 15, 2012, and dated March 26, 2012, prepared by Michael M. Gustin, CPG, of Mine Development Associates, and Moira Smith, PhD, PGeo, and Kent Samuelson of Pilot Gold Inc., under Pilot Gold's issuer profile on SEDAR.

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