Pilot Gold Reports 6.16 g/t Gold Over 45.7 Meters

VANCOUVER, BC - Pilot Gold Inc. reported highlights from ongoing drilling and an update on other activities at the Kinsley Mountain Project in eastern Nevada.

Since the kick-off of the summer drilling program, a total of 16,772 meters in 16 core and 29 RC holes has been drilled to date, with assays pending for 5 holes. The Kinsley land package has increased, with the Company adding five patented claims (66 acres / 26 Ha) and an additional 40 federal lode claims (800 acres / 324 Ha). Pilot Gold has also secured 1,080 acre feet of water rights, and initiated metallurgical studies at the Western Flank.

Highlights from recent drilling in the Western Flank area include: 6.19 g/t (grams per tonne) gold over 45.7 meters in PK175CA, including; 13.8 g/t gold over 19.2 meters; 3.91 g/t gold over 18.3 meters in PK159C, including 8.15 g/t gold over 7.6 meters; 2.89 g/t gold over 19.1 meters in PK162C, including 10.5 g/t over 2.8 meters.

"A successful project is more than just our high-grade drill intercepts," stated Matt Lennox-King, President & CEO of Pilot Gold. "At Kinsley Mountain we continue building value beyond the drill bit by adding to our land package, securing water rights, advancing permits, and getting a head-start on metallurgy."

Step-out drilling at the Western Flank has continued to target high-grade mineralization in the Secret Canyon / Clark Springs formations, and the near-surface Candland Shale unit. The high-grade Western Flank footprint now covers 250 by 200 meters and remains open to the south, north-northeast and southeast. Mineralization in the Candland Shale trends north-northeast and is open to the south. Drilling at the Western Flank has not encountered any groundwater, which may simplify permitting in a development scenario.

Drilling at the Secret Spot target, located two kilometers to the south of the Western Flank target, resulted in the discovery of a thick zone of gold mineralization in the Secret Canyon shale, which is the same host for high-grade mineralization in the Western Flank. The existence of gold mineralization in the same unit two kilometers from the Western Flank suggests that mineralization could be widespread in this unit; follow up drilling is planned to test the extent of gold mineralization in this area.