13-01

Strong results extend gold zone along the north, northwest and south borders at KCD target in Western Turkey

VANCOUVER, B.C. – Pilot Gold Inc. (PLG - TSX) (“Pilot Gold” or the “Company”) is pleased to report that step-out core drilling along the north, south and northwest margins of the KCD target at TV Tower in western Turkey returned strong results and extend the zone of high-grade gold mineralization.

Drill highlights include:

• 14.9 grams per tonne (g/t) gold (Au) over 14.1 metres in KCD-79,including
  • 21.4 g/t Au over 8.6 metres;
• 2.74 g/t Au over 35.1 metres in KCD-78, including
  • 6.17 g/t Au over 12.7 metres;
• 1.56 g/t Au over 18.0 metres and 1.17 g/t Au over 13.0 metres in KCD-76;
• 5.42 g/t Au over 5.5 metres in KCD-74, including
  • 24.2 g/t Au over 1.0 metre.

“Our geologic model is again proving to be predictive, as recent results from step-out drilling at KCD extend the gold-rich zone in multiple directions,” stated Matt Lennox-King, President and CEO, Pilot Gold.  

Hole KCD-79 was drilled along the northern edge of the gold zone at the KCD target, and confirms the presence of high-grade gold approximately 50 metres east-northeast of an intercept in hole KCD-05 (1.99 g/t Au over 55 metres, including 5.15 g/t Au over 4.5 metres) and 120 metres north-northeast and down-dip of an intercept in KCD-50 (193 g/t Au over 12 metres). 

Holes KCD-76 and KCD-78 were drilled up-dip and to the south of previously released holes KCD-63 (2.37 g/t Au over 33.7 metres) and KCD-49 (11.63 g/t Au over 32.5 metres), respectively, representing step-outs of approximately 25 metres. These results, in turn, suggest that mineralization extends to the surface another 25 to 50 metres up-dip to the south, where high-grade rock chip samples were obtained from outcrop in previous surface programs.

The intercept in KCD-74 is located 70-metres west-northwest and 70 metres north of previously reported intercepts, leaving significant room for expansion up-dip, down-dip and to the west and northwest in an area of little previous drilling.

The drill results form part of an aggressive first-year exploration program consisting of 16,000 metres of diamond core drilling, property-wide airborne magnetic/EM geophysics and ongoing surface mapping and geochemical sampling.

Approximately 11,558 metres in 58 holes at KCD have been completed, with assays pending for 21 holes. Drilling in the near-term will continue to focus on infill and step-out drilling in the KCD target area, followed by systematic testing of other high-priority targets in early 2013.

Detailed recent gold highlights include:

All true widths are 50-100% of reported widths unless otherwise stated. All intervals of no sampling have been assigned zero grade for the purposes of compositing. For a comprehensive table of results related to gold mineralization, please click:http://www.pilotgold.com/sites/default/files/TVTowerDrillResults1301.pdf

For a map highlighting recent drilling, please click: http://www.pilotgold.com/sites/default/files/TVTowerDrillMap1301.pdf

 About TV Tower:

TV Tower is a joint venture between Pilot Gold (40%) and Teck Madencilik Sanayi Ticaret A.S. (60%), a Turkish subsidiary of Teck Resources Limited (“Teck”). Pilot Gold is project operator at TV Tower and can increase its interest in the project to 60%, through sole funding of exploration over a three-year period. (See press release dated September 12, 2012 for full details of the deal terms.)

Located on the Biga Peninsula of 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).

First-pass drilling in 2010 resulted in new discoveries at the KCD and Kayali targets. Surface exploration by Pilot Gold continues to uncover robust new targets, including the bonanza-grade Columbaz low sulphidation epithermal vein system that returned 39 g/t gold and 290 g/t silver in recent rock chip sampling.

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 (“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 yielding a mineral resource.

Moira Smith, Ph.D., P.Geo., 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 information contained in the release is accurate. Drill composites were calculated using cut-offs of 0.3, 3.0 and 10.0 g/t Au. Drill intersections are reported as drilled thicknesses. True widths of the mineralized intervals are interpreted to be between 50-100% of the reported lengths. Drill samples were assayed by AcmeLabs in Ankara, Turkey and Vancouver, B.C. for gold by Fire Assay of a 30 gram (1 assay ton) charge with ICP-ES or AAS finish, or if over 5.0 g/t were re-assayed and completed with a gravimetric finish. Ag and Cu were determined by ICP-MS, with overlimits (>100 ppm Ag or >10,000 ppm Cu) completed by fire assay with gravimetric finish (Ag) or 4-acid digestion with ICP-ES finish (Cu). QA/QC 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. 

ABOUT PILOT GOLD

Pilot Gold is a well-funded gold exploration company led by a proven technical team that continues to discover and define high-quality projects featuring strong grades, meaningful size and mining-friendly addresses. Our three key assets include interests in the TV Tower and Halilaga projects in Turkey, and the Kinsley Mountain project in Nevada, each of which has the ability to become a foundational asset. We also have a pipeline of projects characterized by large land positions and district-wide potential that can meet our growth needs for years to come.

For more information, visit www.pilotgold.com or contact:

Investors:
Patrick Reid, VP Corporate Development
Phone: 604-632-4677 or Toll Free 1-877-632-4677
This email address is being protected from spambots. You need JavaScript enabled to view it.

 Media:
Ian Noble, Director, Corporate Communications
Phone: 604-809-8750
This email address is being protected from spambots. You need JavaScript enabled to view it.

Further information is available in the technical report entitled "Updated Technical Report on the TV Tower Exploration Property, Çanakkale, Western Turkey”, effective July 15, 2012 and dated August 3, 2012, prepared by Paul Gribble, B.Sc., C.Eng., FIMMM, UK Manager, Geology of Tetra Tech WEI Inc., under Pilot Gold’s Issuer Profile on SEDAR (www.sedar.com).

All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to Pilot Gold within the meaning of applicable securities laws, including statements that address timing of exploration and development plans at the Company’s mineral projects. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold, copper, silver and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources and mineral reserves, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Pilot Gold and there is no assurance they will prove to be correct.

Such forward-looking information, including, but not limited to, statements that address reserve potential, potential quantity and/or grade of minerals, potential size of a mineralized zone, potential expansion of mineralization, the timing and results of future resource estimates, proposed timing of exploration and development plans at the Company’s mineral projects, and the estimation of mineral reserves and resources involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of Pilot Gold to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information.

Such factors include, among others, risks related to the interpretation of results at certain of our exploration properties, reliance on technical information provided by our joint venture partners or other third parties as related to any of our exploration properties; changes in project parameters as plans continue to be refined; successfully completing the earn-in on the TV Tower project, including the ability to incur the minimum annual Expenditure Requirements and future issuance of common shares as consideration to complete the earn-in agreement; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; current and proposed exploration and development; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; uses of funds in general including future capital expenditures, exploration expenditures and other expenses for specific operations; the timing and success of exploration activities generally; achievement of identified tangible project milestones at TV Tower; delays in permitting; satisfaction of Turkish requirements relating to the periodic submissions of Environmental Impact Assessments; possible claims against the Company or its joint venture partners; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration as well as those factors discussed in the (final) short form prospectus of the Company dated October 25, 2012, in the section entitled "Risk Factors", under Pilot Gold’s SEDAR profile at www.sedar.com.

 Although Pilot Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Pilot Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. Accordingly, readers should not place undue reliance on forward-looking information. Further details relating to Pilot Gold are also available in our Annual Information Form, available under Pilot Gold’s SEDAR profile at www.sedar.com

Purchase includes $3 million in cash, 15% net profits royalty in property and Gold Bonus payment

Pilot Gold Inc. (PLG - TSX) (“Pilot Gold” or the “Company”) has signed and closed a definitive purchase agreement (the “Agreement”) to sell 100% of its Regent exploration property (“Regent”, or the “Property”) to Rawhide Mining LLC (“RMC”) for $3 million in cash.

Pilot Gold will retain a net profits royalty of 15% on the Property and is entitled to a sliding scale gold equivalent bonus payment (the “Gold Bonus”), each of which is payable in certain circumstances after RMC has achieved production at the Property.

"Regent’s divestiture allows the Company to add to its strong cash position while the royalty potentially offers exposure to production for Pilot Gold, as RMC intends to integrate Regent into its existing mining operations,” said Matt Lennox-King, President and CEO, Pilot Gold.

Transaction highlights:

• Non-refundable payments to Pilot Gold of $2 million received at closing and $1 million payable six months following closing

• 15% royalty on net profits from Regent after RMC recovers its upfront cash payments to Pilot Gold and its development costs to take Regent to production

• A Gold Bonus for any gold-equivalent ounces from Regent placed on the RMC leach pad in excess of 115,000 ounces based on:  

The Regent property is located in Mineral County, Nevada, along the eastern margin of the prolific Walker Lane epithermal gold-silver belt. It includes 283 claims totaling 1,795 hectares (4,436 acres) and is an epithermal gold and silver system with oxide gold outcropping at surface, and extensive subsurface gold mineralization outlined in several areas by over 600 drill holes.  Regent is 2.5 kilometers northwest of the RMC-operated Denton-Rawhide Mine. The Denton-Rawhide Mine began operations in 1990. Gold and silver production is ongoing, as RMC has expanded the heap leach pads and is currently expanding operations.

RMC plans to continue exploration and engineering studies at Regent in an effort to define a mineral resource that could be permitted, developed and processed at the adjacent Denton-Rawhide Mine. Pilot Gold may receive revenue through its profit participation – and potentially Gold Bonus payments – if Regent advances to production.

ABOUT RAWHIDE MINING LLC

Rawhide Mining LLC operates the historic Denton-Rawhide Mine, located 2.5 kilometres southeast of Regent. The mine began operations in 1990, producing 1.56 million ounces of gold and 11.5 million ounces of silver by traditional open pit-heap leach methods through 2010. Gold and silver production is ongoing as Rawhide Mining LLC has been expanding the heap leach pads and mining the historical open pit.

ABOUT PILOT GOLD

Pilot Gold is a well-funded gold exploration company led by a proven technical team that continues to discover and define high-quality projects featuring strong grades, meaningful size and mining-friendly addresses. Our three key assets include interests in the TV Tower and Halilaga projects in Turkey, and the Kinsley Mountain project in Nevada, each of which has the ability to become a foundational asset. We also have a pipeline of projects characterized by large land positions and district-wide potential that can meet our growth needs for years to come.

For more information, visit www.pilotgold.com or contact:

Investors:
Patrick Reid, VP Corporate Development
Phone: 604-632-4677 or Toll Free 1-877-632-4677
This email address is being protected from spambots. You need JavaScript enabled to view it.

Media:

Ian Noble, Director, Corporate Communications

Phone: 604-809-8750

This email address is being protected from spambots. You need JavaScript enabled to view it.

All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to Pilot Gold Inc. ("Pilot Gold") within the meaning of applicable securities laws, including statements that address the potential receipt of revenue in the future from the royalty or the Gold Bonus. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold, copper, silver and other metal prices, the timing and ability of RMC to define a mineral resource and bring the property to production, currency exchange rates and interest rates, favourable operating conditions, political stability, RMC obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, labour stability, stability in market conditions, and anticipated costs and expenditures by RMC at the Property. Many assumptions are based on factors and events that are not within the control of Pilot Gold and there is no assurance they will prove to be correct.

Such forward-looking information, including, but not limited to, statements that address resource potential, potential quantity and/or grade of minerals, potential size of a mineralized zone, potential expansion of mineralization, the timing and results of future resource estimates by RMC, RMC’s ability to put Regent into production and the estimation of mineral reserves and resources involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of Pilot Gold to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information.  Such factors include, among others, risks related to the interpretation of results at the Regent property; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; current and proposed exploration and development; the costs and timing of the development of the Regent property by RMC; deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; the timing and success of exploration activities generally; delays in permitting; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration by RMC as well as those factors discussed in the (final) short form prospectus of the Company dated October 25, 2012, in the section entitled "Risk Factors", under Pilot Gold’s SEDAR profile at www.sedar.com.

Although Pilot Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Pilot Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. Accordingly, readers should not place undue reliance on forward-looking information. Further details relating to Pilot Gold are also available in our Annual Information Form, available under Pilot Gold’s SEDAR profile at www.sedar.com.

Drilling shows continuity of high-grade gold extending more than 100 metres

VANCOUVER, B.C. – Pilot Gold Inc. (PLG - TSX) (“Pilot Gold” or the “Company”) is pleased to report that infill drilling from holes to the southeast and down-dip to the northeast of KCD-50 returned significant intervals of high-grade gold, including one interval containing visible gold.

Drill highlights include:

• 6.59 g/t gold (Au) over 34.2 metres in KCD-80, including
  
  • 42.0 g/t Au over 3.7 metres; and
  • 9.58 g/t Au over 4.5 metres

• 2.83 g/t Au over 32.0 metres in KCD-85, including
  
  • 7.20 g/t Au over 10.6 metres

• 7.08 g/t Au over 17.0 metres in KCD-72, including
  
  • 86.0 g/t Au over 1.3 metres

“Infill drilling is necessary to demonstrate continuity of high-grade zones of gold mineralization, and we are pleased that these results confirm continuity and extend it,” said Matt Lennox-King, President and CEO, Pilot Gold.

Core holes KCD-80, KCD-83 and KCD-85 were fanned from a single drill pad located approximately 25 metres southeast of KCD-50, which returned 12.0 metres averaging 193 g/t gold. The results suggest that a zone of high gold grades extends continuously from KCD-50 southeast to join strong intercepts such as KCD-39 (5.94 g/t Au over 137.1 metres) over a total distance of more than 100 metres.

The intercept from KCD-72 contains visible gold. The hole was drilled from the same pad as KCD-50, and extends high-grade gold mineralization down-dip approximately 25 metres to the northeast. 

For a map highlighting recent drilling, please click: http://www.pilotgold.com/sites/default/files/TVTowerDrillMap1303.pdf

The drill results form part of an aggressive first-year exploration program consisting of 16,000 metres of diamond core drilling, property-wide airborne magnetic/EM geophysics and ongoing surface mapping and geochemical sampling.

Approximately 12,180 metres in 61 holes at KCD have been completed, with assays pending for 20 holes. Drilling in the near-term will continue to focus on infill and step-out drilling in the KCD target area, followed by systematic testing of other high-priority targets throughout 2013.

All true widths are 50-100% of reported widths unless otherwise stated. All intervals of no sampling have been assigned zero grade for the purposes of compositing. For a comprehensive table of results related to gold mineralization, please click: http://www.pilotgold.com/sites/default/files/TVTowerDrillResults1303.pdf

About TV Tower:

TV Tower is a joint venture between Pilot Gold (40%) and Teck Madencilik Sanayi Ticaret A.S. (60%), a Turkish subsidiary of Teck Resources Limited (“Teck”). Pilot Gold is project operator at TV Tower and can increase its interest in the project to 60%, through sole funding of exploration over a three-year period. (See press release dated September 12, 2012 for full details of the deal terms.)

Located on the Biga Peninsula of 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).

First-pass drilling in 2010 resulted in new discoveries at the KCD and Kayali targets. Surface exploration by Pilot Gold continues to uncover robust new targets, including the bonanza-grade Columbaz low sulphidation epithermal vein system that returned 39 g/t gold and 290 g/t silver in recent rock chip sampling.

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 (“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 yielding a mineral resource.

Moira Smith, Ph.D., P.Geo., 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 information contained in the release is accurate. Drill composites were calculated using cut-offs of 0.3, 3.0 and 10.0 g/t Au. Drill intersections are reported as drilled thicknesses. True widths of the mineralized intervals are interpreted to be between 50-100% of the reported lengths. Drill samples were assayed by AcmeLabs in Ankara, Turkey and Vancouver, B.C. for gold by Fire Assay of a 30 gram (1 assay ton) charge with ICP-ES or AAS finish, or if over 5.0 g/t were re-assayed and completed with a gravimetric finish. Ag and Cu were determined by ICP-MS, with overlimits (>100 ppm Ag or >10,000 ppm Cu) completed by fire assay with gravimetric finish (Ag) or 4-acid digestion with ICP-ES finish (Cu). QA/QC 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. 

ABOUT PILOT GOLD

Pilot Gold is a well-funded gold exploration company led by a proven technical team that continues to discover and define high-quality projects featuring strong grades, meaningful size and mining-friendly addresses. Our three key assets include interests in the TV Tower and Halilaga projects in Turkey, and the Kinsley Mountain project in Nevada, each of which has the ability to become a foundational asset. We also have a pipeline of projects characterized by large land positions and district-wide potential that can meet our growth needs for years to come.

For more information, visit www.pilotgold.com or contact:

Investors:
Patrick Reid, VP Corporate Development
Phone: 604-632-4677 or Toll Free 1-877-632-4677
This email address is being protected from spambots. You need JavaScript enabled to view it.

Media:
Ian Noble, Director, Corporate Communications
Phone: 604-809-8750
This email address is being protected from spambots. You need JavaScript enabled to view it.

Further information is available in the technical report entitled "Updated Technical Report on the TV Tower Exploration Property, Çanakkale, Western Turkey”, effective July 15, 2012 and dated August 3, 2012, prepared by Paul Gribble, B.Sc., C.Eng., FIMMM, UK Manager, Geology of Tetra Tech WEI Inc., under Pilot Gold’s Issuer Profile on SEDAR (www.sedar.com).

All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to Pilot Gold within the meaning of applicable securities laws, including statements that address timing of exploration and development plans at the Company’s mineral projects. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold, copper, silver and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources and mineral reserves, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Pilot Gold and there is no assurance they will prove to be correct.

Such forward-looking information, including, but not limited to, statements that address reserve potential, potential quantity and/or grade of minerals, potential size of a mineralized zone, potential expansion of mineralization, the timing and results of future resource estimates, proposed timing of exploration and development plans at the Company’s mineral projects, and the estimation of mineral reserves and resources involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of Pilot Gold to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information.

Such factors include, among others, risks related to the interpretation of results at certain of our exploration properties, reliance on technical information provided by our joint venture partners or other third parties as related to any of our exploration properties; changes in project parameters as plans continue to be refined; successfully completing the earn-in on the TV Tower project, including the ability to incur the minimum annual Expenditure Requirements and future issuance of common shares as consideration to complete the earn-in agreement; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; current and proposed exploration and development; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; uses of funds in general including future capital expenditures, exploration expenditures and other expenses for specific operations; the timing and success of exploration activities generally; achievement of identified tangible project milestones at TV Tower; delays in permitting; satisfaction of Turkish requirements relating to the periodic submissions of Environmental Impact Assessments; possible claims against the Company or its joint venture partners; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration as well as those factors discussed in the (final) short form prospectus of the Company dated October 25, 2012, in the section entitled "Risk Factors", under Pilot Gold’s SEDAR profile at www.sedar.com.

Although Pilot Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Pilot Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. Accordingly, readers should not place undue reliance on forward-looking information. Further details relating to Pilot Gold are also available in our Annual Information Form, available under Pilot Gold’s SEDAR profile at www.sedar.com.

13-06

Silver zone at TV Tower includes intercepts up to 110.6 metres averaging 69.8 g/t silver

VANCOUVER, B.C. – Pilot Gold Inc. (PLG - TSX) (“Pilot Gold” or the “Company”) is pleased to highlight drill results focused on a substantial, near-surface zone of silver-only mineralization that overlies the high-grade gold-silver-copper zone at the KCD target at TV Tower described in previous Pilot Gold news releases. While Pilot Gold continues to prioritize the gold-silver-copper zone, a significant silver zone has been identified in drill holes extending over an area measuring more than 500 metres by 300 metres, and up to 100 metres thick.

Silver drill highlights include:

• 69.8 g/t silver (Ag) over 110.6 metres in KCD-66, including
  
  • 87.1 g/t Ag over 71.0 metres
• 52.1 g/t Ag over 111.8 metres in KCD-68, including
  
  • 150 g/t Ag over 8.3 metres
• 71.2 g/t Ag over 53.8 metres in KCD-43
• 63.8 g/t Ag over 76.5 metres in KCD-74

“While shallow, silver-only mineralization was identified in some of the earliest drill holes at the KCD target, the potential size and significance of this zone is only now being recognized,” said Moira Smith, Pilot Gold’s Chief Geologist. “Many of the drill holes targeting the gold zone passed through the silver zone. Drilling will now include further attention to the silver zone itself, in order to understand its full extent and significance.”

The silver zone partially overlaps and overlies the gold-silver-copper zone of mineralization (as described in previous press releases). The silver zone consists of a gently north-dipping, tabular zone of mineralization that has been tested by holes spaced 50 to 100 metres over an area measuring approximately 500 by 300 metres. It is exposed on surface along the southern margin of the zone, and under shallow cover further to the north. The zone is open to the west, east and down dip to the north. The upper portion of the zone and near-surface areas are extensively oxidized.

Silver mineralization is hosted in fluvial-lacustrine strata including reworked volcaniclastic rocks, siltstone, mudstone and overlying andesite, and consists of very fine-grained disseminated to semi-massive and vein-hosted pyrite and lesser enargite, accompanied by variable silicification of the host rocks. Silver-bearing minerals have not been conclusively identified and await further study by thin section.

Silver mineralization may slightly pre-date gold mineralization based on paragenetic relationships. Silver grade appears to be related to sulphide content, with semi-massive zones often hosting individual assay intervals returning 100 g/t Ag to 300 g/t Ag or more. Some low-grade copper mineralization is also associated with this zone. Pilot Gold has commenced a metallurgical program to characterize the nature of the silver mineralization and identify appropriate extraction methods for both the oxide and sulphide silver mineralization.

“We are very pleased with TV Tower’s gold drill results to date and the recent expansion of our high-grade gold target through step-out drilling,” said Matt Lennox-King, President & CEO, Pilot Gold. “While gold will continue to be our priority, we are also seeing strong silver results that could help unlock further value for TV Tower going forward.”

All true widths are 50-100% of reported widths unless otherwise stated. All intervals of no sampling have been assigned zero grade for the purposes of compositing. For a comprehensive table of results related to silver mineralization, please click: http://www.pilotgold.com/sites/default/files/TVTowerDrillResults1306.pdf. The attached table contains intervals referenced specifically to silver for all holes drilled to date in 2012. These results have not been released in this form previously, and represent newly calculated intervals for 54 drill holes.

For a map highlighting recent drilling, please click: http://www.pilotgold.com/sites/default/files/TVTowerDrillMap1306.pdf

The drill results form part of an aggressive exploration program consisting of 16,000 metres of diamond core drilling, property-wide airborne magnetic/EM geophysics and ongoing surface mapping and geochemical sampling. Approximately 14,000 metres in 69 holes at KCD have been completed since the program started in June 2012, with assays pending for 14 holes. Drilling in the near-term will continue to focus on infill and step-out drilling in the KCD target area.

Pilot Gold plans to undertake 25,000 to 30,000 metres drilling (total) at the KCD, Kayali and Sarp/Columbaz targets in 2013.

About TV Tower:

TV Tower is a joint venture between Pilot Gold (40%) and Teck Madencilik Sanayi Ticaret A.S. (60%), a Turkish subsidiary of Teck Resources Limited (“Teck”). Pilot Gold is project operator at TV Tower and can increase its interest in the project to 60%, through sole funding of exploration over a three-year period. (See press release dated September 12, 2012 for full details of the deal terms.)

Located on the Biga Peninsula of northwest Türkiye, the TV Tower project 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 Türkiye’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).

First pass drilling in 2010 resulted in new discoveries at the KCD and Kayali epithermal gold systems. Ongoing exploration by Pilot Gold continues to uncover robust new targets, including the bonanza-grade Columbaz low sulphidation epithermal vein system that returned 39 g/t gold and 290 g/t silver in 2012 rock chip sampling.

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 (“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 yielding a mineral resource.

Moira Smith, Ph.D., P.Geo., 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 information contained in the release is accurate. Drill composites were calculated using cut-offs of 10, 50 and 100 g/t Ag. Drill intersections are reported as drilled thicknesses. True widths of the mineralized intervals are interpreted to be between 50-100% of the reported lengths. Drill samples were assayed by AcmeLabs in Ankara, Türkiye and Vancouver, B.C. for gold by Fire Assay of a 30 gram (1 assay ton) charge with ICP-ES or AAS finish, or if over 5.0 g/t were re-assayed and completed with a gravimetric finish. Metallic screen techniques were employed to assay a 12-metre interval in KCD-50. Approximately 500 grams of coarse reject material are pulverized and screened. Two splits of the fine fraction are assayed, as well as all material that does not pass through the screen (the coarse fraction). The final gold assay reported is a weighted average of the coarse and fine fractions. Ag and Cu were determined by aqua regia ICP-MS, with overlimits (>100 ppm Ag or >10,000 ppm Cu) completed by fire assay with gravimetric finish (Ag) or 4-acid digestion with ICP-ES (Cu). QA/QC 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.

ABOUT PILOT GOLD

Pilot Gold is a well-funded gold exploration company led by a proven technical team that continues to discover and define high-quality projects featuring strong grades, meaningful size and mining-friendly addresses. Our three key assets include interests in the TV Tower and Halilaga projects in Türkiye, and the Kinsley Mountain project in Nevada, each of which has the ability to become a foundational asset. We also have a pipeline of projects characterized by large land positions and district-wide potential that can meet our growth needs for years to come.

For more information, visit www.pilotgold.com or contact:

Investors:
Patrick Reid, VP Corporate Development
Phone: 604-632-4677 or Toll Free 1-877-632-4677
This email address is being protected from spambots. You need JavaScript enabled to view it.

Media:
Ian Noble, Director, Corporate Communications
Phone: 604-809-8750
This email address is being protected from spambots. You need JavaScript enabled to view it.

Further information is available in the technical report entitled "Updated Technical Report on the TV Tower Exploration Property, Çanakkale, Western Türkiye”, effective July 15, 2012 and dated August 3, 2012, prepared by Paul Gribble, B.Sc., C.Eng., FIMMM, UK Manager, Geology of Tetra Tech WEI Inc., under Pilot Gold’s Issuer Profile on SEDAR (www.sedar.com).

All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to Pilot Gold within the meaning of applicable securities laws, including statements that address timing of exploration and development plans at the Company’s mineral projects. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold, copper, silver and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources and mineral reserves, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Pilot Gold and there is no assurance they will prove to be correct.

Such forward-looking information, including, but not limited to, statements that address reserve potential, potential quantity and/or grade of minerals, potential size of a mineralized zone, potential expansion of mineralization, the timing and results of future resource estimates, proposed timing of exploration and development plans at the Company’s mineral projects, and the estimation of mineral reserves and resources involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of Pilot Gold to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information.

Such factors include, among others, risks related to the interpretation of results at certain of our exploration properties, reliance on technical information provided by our joint venture partners or other third parties as related to any of our exploration properties; changes in project parameters as plans continue to be refined; successfully completing the earn-in on the TV Tower project, including the ability to incur the minimum annual Expenditure Requirements and future issuance of common shares as consideration to complete the earn-in agreement; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; current and proposed exploration and development; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; uses of funds in general including future capital expenditures, exploration expenditures and other expenses for specific operations; the timing and success of exploration activities generally; achievement of identified tangible project milestones at TV Tower; delays in permitting; satisfaction of Turkish requirements relating to the periodic submissions of Environmental Impact Assessments; possible claims against the Company or its joint venture partners; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration as well as those factors discussed in the (final) short form prospectus of the Company dated October 25, 2012, in the section entitled "Risk Factors", under Pilot Gold’s SEDAR profile at www.sedar.com.

Although Pilot Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Pilot Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. Accordingly, readers should not place undue reliance on forward-looking information. Further details relating to Pilot Gold are also available in our Annual Information Form, available under Pilot Gold’s SEDAR profile at www.sedar.com. 

Significant milestones achieved at key projects in Turkey, Nevada

VANCOUVER, B.C. – Pilot Gold Inc. (PLG - TSX) (“Pilot Gold” or the “Company”) is pleased to announce its financial results and company highlights for the year ended December 31, 2012, a year marked by significant advances on each of its key projects in Turkey and Nevada.

2012 highlights and significant events subsequent to year end include:

• Signed an earn-in and joint venture agreement with Teck Resources Limited ("Teck") to become project operator at the TV Tower property in Turkey, while earning in to 60% interest
• Identified large, growing gold and silver zones at the KCD target, TV Tower
• Announced results of a preliminary economic assessment and a maiden resource estimate for the Halilaga copper-gold project in northwest Turkey
• Earned-in to a 65% interest in, and doubled property size at, the Kinsley Mountain project in Nevada
• Sold the Regent exploration property for $3 million, retaining exposure to potential future production
• Secured capital to ensure 2013 exploration plans are fully funded

“Pilot Gold realized significant exploration and project success in 2012,” stated Matt Lennox-King, Pilot Gold President & CEO. “We are in an excellent position heading into 2013, with the financial strength and the proven skills and experience we require to drive progress at our properties in Turkey and Nevada and achieve our vision of being the leading exploration company in our chosen jurisdictions.”

TV Tower:
Pilot Gold currently holds a 40% interest in the project and became project operator in 2012.  Pursuant to the TV Tower Agreement, we hold an option to increase our interest in the project from 40% to 60%, subject to meeting certain requirements over the next three years.  A subsidiary of Teck currently holds a 60% interest in TV Tower.  We completed the $5 million first-year minimum earn-in expenditure commitment in January 2013, and issued 1,637,500 common shares to a subsidiary of Teck in connection with achieving this first milestone.

Since becoming project operator in June 2012, we completed 14,440 metres of drilling, comprising 70 diamond drill holes primarily focused on the KCD target. Drilling in 2012 at KCD has returned some of the highest-grade gold, silver and copper intercepts reported in northwestern Turkey. The program at TV Tower for 2013 includes 30,000 metres of core and RC drilling at multiple targets.

Kinsley:
Pilot Gold earned a 65% interest in Kinsley Mountain in February 2013. The 2012 program included 11,868 metres of infill and step-out core and reverse circulation (“RC”) drilling in 63 holes, and was designed to define and expand the mineralized zones identified by previous operators.

In conjunction with drilling, a comprehensive property-wide soil and rock sampling and geological mapping effort to identify new targets was completed, encompassing both the original 272 claims and 191 claims staked by the Company in largely unexplored areas. Staking by the Company expanded the Kinsley property, consolidated access to the main mineralized trends to the North, and joined two previously separate claim blocks, creating a contiguous property.

The 2013 Kinsley work program includes 22,000 metres of core and RC drilling stepping out from the historic pits, and to test priority exploration targets on flanking and outlying targets. Nevada Sunrise Gold Corporation holds a 35% interest in Kinsley and will be responsible for its pro-rata share of costs for this year’s program. 

Halilaga:
The Company holds a 40% interest in Halilaga, a copper-gold porphyry located 20 kilometres southeast of TV Tower. Halilaga advanced considerably during 2012, with an initial resource estimate, and the completion of a preliminary economic assessment (the “Halilaga PEA”).

Highlights of the Halilaga PEA (Base Case: USD$1,200/oz. Au and USD$2.90/lb. copper) include:

• Pre-tax IRR of 26%; After-tax IRR of 20%

• Pre-tax NPV7% of $675 million; After-tax NPV7% of $474 million

• 2.1 year pre-tax payback; 2.7 year after-tax payback

The resource estimate at Halilaga includes (i) an Indicated sulphide resource of 1.112 billion pounds of copper at an average grade of 0.30% copper (168,167,000 tonnes), and 1.665 million ounces of gold at an average grade of 0.31 g/t gold, and (ii) an Inferred sulphide resource of 1.007 billion pounds of copper at an average grade of 0.23% copper (198,668,000 tonnes) and 1.661 million ounces of gold at an average grade of 0.26 g/t gold.

The Halilaga PEA suggests that conceptually, the project may be viable (within the very preliminary parameters of a PEA) with the commodity price assumptions included therein relative to today's cost environment.  The illustrative project would use conventional open pit mining (with an approximate 1:1 strip ratio), and standard milling and flotation processing for recovery of copper and gold.  A subsidiary of Teck holds 60% of Halilaga and is project operator. In 2013 we plan to continue strategic studies including economic, metallurgical, hydrological, environmental and engineering analyses to support the conceptual economics and potential of this porphyry project.

The Halilaga PEA is preliminary in nature. The mineral resources used in the Life of Mine plan and economic analysis include 56% Indicated mineral resources, and 44% Inferred mineral resources. Inferred mineral resources are considered too speculative geologically to have the economic considerations applied to them to be categorized as mineral reserves. Mineral resources that are not mineral reserves do not have demonstrated economic viability.  Mineral reserves can only be estimated as a result of an economic evaluation as part of a Pre-Feasibility Study or a Feasibility Study of a mineral project. Accordingly, at the present level of development there are no mineral reserves at Halilaga.  Due to the uncertainty that may be attached to Inferred Mineral Resources, it cannot be assumed that all or any part of an Inferred Mineral Resource will be upgraded to an Indicated or Measured Mineral Resource as a result of continued exploration or Mineral Reserves once economic considerations are applied. Therefore there is no certainty that the production profile concluded in the Halilaga PEA will be realized.  Mineral resource estimates do not account for mineability, selectivity, mining loss and dilution. Moira Smith, Ph.D., P.Geo, Pilot Gold Chief Geologist, is the Company's designated Qualified Person (‘QP”) for the purposes of National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”), and has reviewed and validated that the scientific or technical information contained in this News Release related to the Halilaga PEA is consistent with that provided by the QPs responsible for the Halilaga PEA, and has verified the technical data disclosed in this document relating to those other projects in which the Company holds an interest. Dr. Smith has consented to the inclusion of the technical information in the form and context in which it appears in this News Release.  

TV Tower and Kinsley are both early stage exploration projects.   Neither 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 yielding a mineral resource.

SELECTED FINANCIAL DATA

The following selected financial data is derived from our consolidated financial statements for the years ended December 31, 2012, 2011 and 2010, as prepared in accordance with International Financial Reporting Standards (“IFRS”). As described in our audited consolidated financial statements, a portion of the comparative year reflects the application of continuity of interest accounting.

For the year ended December 31, 2012, we reported a net loss of $8.02 million compared to a net loss of $11.84 million for the year ended December 31, 2011. The most significant contributors to the loss for the year ended December 31, 2012 were the cost of wages and benefits of $2.30 million (2011: $1.20 million), stock-based compensation of $1.72 million (2011: $5.9 million) and office and general expenses of $1.52 million (2011: $1.24 million).  

Expenses for the year ended December 31, 2012 were offset by income recognized from management fees arising from our qualifying expenditures on the TV Tower project of $0.38 million (2011: $nil) and the reversal of a previous impairment of the VAT receivable in Turkey ($0.31 million). The loss per share for the year ended December 31, 2012 was $0.12 (December 31, 2011: $0.21).

Total assets increased significantly to $72.39 million as at December 31, 2012 (December 31, 2011: $37.49 million). The most significant increase reflects the (i) receipt of proceeds from the bought-deal financing and concurrent private placements that closed on November 1, 2012; and (ii) the values of the Common Shares and share purchase warrants issued to Teck to secure the earn-in option at TV Tower, off-set by those cash outflows for general exploration and administration activities and net changes to the value of our investments in public companies. 

Liabilities at December 31, 2012 reflect primarily accounts payable and accruals recorded at year end arising from ongoing activities.

This press release should be read in conjunction with Pilot Gold’s audited consolidated financial statements and Management’s Discussion and Analysis for the year ended December 31, 2012. These documents can be found on the Company’s website (www.pilotgold.com) or under the Company’s profile on SEDAR at www.sedar.com. Shareholders may receive a printed copy of the audited consolidated financial statements, free of charge, upon request. All amounts are presented in United States dollars unless otherwise stated. Pilot Gold will be hosting its annual general meeting on May 9, 2013, in Vancouver, British Columbia.

ABOUT PILOT GOLD

Pilot Gold is a well-funded gold exploration company led by a proven technical team that continues to discover and define high-quality projects featuring strong grades, meaningful size and mining-friendly addresses. Our three key assets include interests in the TV Tower and Halilaga projects in Turkey, and the Kinsley Mountain project in Nevada, each of which has the ability to become a foundational asset. We also have a pipeline of projects characterized by large land positions and district-wide potential that can meet our growth needs for years to come.

For more information, visit www.pilotgold.com or contact:

Investors:
Patrick Reid, VP Corporate Affairs
Phone: 604-632-4677 or Toll Free 1-877-632-4677This email address is being protected from spambots. You need JavaScript enabled to view it.

Media:
Ian Noble, Director, Corporate Communications
Phone: 604-809-8750
This email address is being protected from spambots. You need JavaScript enabled to view it.

Unless stated otherwise, information of a scientific or technical nature in this press release regarding the TV Tower, Halilaga or Kinsley Mountain properties are summarized, derived or extracted from, the following technical reports: “Updated Technical Report on the TV Tower Exploration Property, Canakkale, Western Turkey”, effective July 15, 2012 and dated August 3, 2012 prepared by Paul Gribble, C.Eng., FIMMM; “Preliminary Economic Assessment Technical Report for the Halilaga Project, Turkey” effective August 27, 2012 and dated October 10, 2012 prepared by Gordon Doerksen, P.Eng., James Gray, P.Geo., Garth Kirkham, P.Geo., Dino Pilotto, P.Eng., Maritz Rykaart, P.Eng, and Kevin Scott, P.Eng.; and “Technical Report on the Kinsley Project, Elko County, Nevada, U.S.A.” effective February 15, 2012 and dated March 26, 2012 prepared by Michael Gustin, CPG and Moira Smith, Ph.D., P.Geo. For further detail on TV Tower, Kinsley Mountain or the Halilaga PEA, refer to the respective technical reports filed on the Company’s website at www.pilotgold.com or under Pilot Gold’s SEDAR profile at .

All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to Pilot Gold within the meaning of applicable securities laws, including statements that address timing of exploration and development plans at the Company’s mineral projects. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold, copper, silver and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources and mineral reserves, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Pilot Gold and there is no assurance they will prove to be correct.

Such forward-looking information, including, but not limited to, statements that address reserve potential, potential quantity and/or grade of minerals, potential size of a mineralized zone, potential expansion of mineralization, the timing and results of future resource estimates, proposed timing of exploration and development plans at the Company’s mineral projects, and the estimation of mineral reserves and resources involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of Pilot Gold to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information.

Such factors include, among others, risks related to the interpretation of results at certain of our exploration properties, reliance on technical information provided by our joint venture partners or other third parties as related to any of our exploration properties; changes in project parameters as plans continue to be refined; successfully completing the earn-in on the TV Tower project, including the ability to incur the minimum annual Expenditure Requirements and future issuance of common shares as consideration to complete the earn-in agreement; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; current and proposed exploration and development; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; uses of funds in general including future capital expenditures, exploration expenditures and other expenses for specific operations; the timing and success of exploration activities generally; delays in permitting; satisfaction of Turkish requirements relating to the periodic submissions of Environmental Impact Assessments; possible claims against the Company or its joint venture partners; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration as well as those factors discussed in the Annual Information Form of the Company dated March 27, 2013, in the section entitled "Risk Factors", under Pilot Gold’s SEDAR profile at .

Although Pilot Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Pilot Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. Accordingly, readers should not place undue reliance on forward-looking information. Further details relating to Pilot Gold are also available in our Annual Information Form, available under Pilot Gold’s SEDAR profile at .

Cautionary Note to United States Investors Concerning Estimates of Measured, Indicated and Inferred Resources

The mineral resource estimates referenced use the terms "Indicated Mineral Resources" and "Inferred Mineral Resources." While these terms are defined in and required by Canadian regulations (under NI 43-101), these terms are not recognized by the U.S. Securities and Exchange Commission ("SEC"). "Inferred Mineral Resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. The SEC normally only permits issuers to report mineralization that does not constitute SEC Industry Guide 7 compliant "reserves" as in-place tonnage and grade without reference to unit measures. U.S. investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. Pilot Gold is not an SEC registered company.

2013 campaign builds on KCD success and will test two additional targets

VANCOUVER, B.C. – Pilot Gold Inc. (PLG - TSX) (“Pilot Gold” or the “Company”) is pleased to report that the 2013 drilling campaign at the TV Tower property in northwestern Turkey commenced March 23. A total of 30,000 metres of drilling property-wide is planned for 2013, including 15,000 metres on the KCD target and 7,500 metres each on the Kayali and Columbaz targets. 

Currently, three diamond core drills are in operation. One additional reverse circulation (RC) drill may be activated later in the season.

“We were very pleased with the 2012 results at KCD and look forward to further testing and defining the gold and silver zones at this target in 2013,” said Moira Smith, Chief Geologist, Pilot Gold. “We have performed extensive geophysics, mapping, and geochemical sampling work property-wide and have defined solid, drill-ready targets at Kayali and Columbaz, with additional areas in the target-definition stage.”

KCD drilling and metallurgical testing

TV Tower drilling in 2012 and early 2013 focused entirely on testing the high-grade KCD target in the northeastern part of the property. Drilling confirmed the presence of a 250 by 400 metre gold zone, which remains open down-dip to the north, and established the presence of a large, 400 by 600 metre stratabound silver zone that overlies the gold zone and is open to the west and northwest. 

The 2013 drill program includes down-dip holes on the gold zone within the footprint of previously drilled mineralization, and aggressive step-out drilling to the north and west of the drilled footprint, primarily on the silver zone.  A permit application has been submitted to allow for drill access to areas up to 1.5 kilometres west of the presently defined KCD target, with plans for intensive drilling over an area extending up to 500 metres to the west. 

In addition, a staged metallurgical testing program is being implemented at KCD. The program is designed to characterize the metallurgical response of the variable mineralization types at the KCD target, including gold, silver and copper oxide, transitional and sulphide material. Database validation, check assaying, 3D geological modeling and other activities pursuant to resource estimation are also underway.

For a comprehensive table of results related to gold mineralization, please click:
http://pilotgold.com/sites/default/files/TVTowerGoldDrillResults1310.PDF

For a comprehensive table of results related to silver mineralization, please click:
http://pilotgold.com/sites/default/files/TVTowerSilverDrillResults1310.PDF

For a property map showing areas proposed for 2013 drilling, please click:
http://pilotgold.com/sites/default/files/TVTowerDrillMap1310.jpg

Kayali drilling over 400-metre target

The Kayali high-sulphidation, shallow oxide gold target is located approximately eight kilometres south of the KCD target.

The Kayali target was discovered in 2010 with drill hole KYD-01, which returned 0.87 g/t gold over 114.5 metres from a depth of 4.5 metres, including 2.85 g/t Au over 15.4 metres. The Kayali zone consists of a thick blanket of silica-altered volcaniclastic rocks cut by east-west-trending structures (silicified ribs) with elevated gold. Other parallel structures may be present in the general area.  A drill will be mobilized to the Kayali zone targeting the gold-bearing structures as soon as the weather and road conditions allow, with 7,500 metres of drilling planned for this area over a 400-metre-long strike length. 

Columbaz drilling targets low-sulphidation gold and silver veins

The Columbaz target is located approximately two kilometres south of the KCD target. This target consists of low-sulphidation gold-silver bearing veins that have been traced discontinuously over an east-northeast strike length of up to 1,000 metres. Veins are up to 10 metres thick in some locations. Float samples of the vein have returned up to 92 g/t gold and up to 396 g/t silver. Approximately 7,500 metres of drilling are planned for the Columbaz target in 2013. Work is set to commence upon receipt of permits for construction of roads and drill sites. 

Work ongoing at pipeline targets

A number of other targets are currently the subject of additional surface geological work and drill site permitting. These include:

• The Kestanecik low sulphidation gold-silver target, consisting of several parallel quartz veins up to several metres thick and several hundred metres long.

•  The Kartaldag West target, a one-kilometre-long sheared zone of high sulphidation vuggy silica with inclusions of low sulphidation quartz vein material, argillic alteration and rock and soil samples with elevated gold.

• The Gumusluk target, a one-kilometre-long zone of elevated gold in soil samples (up to 6130 ppb) developed over basement serpentinite. Examination of outcrop reveals the presence of quartz, green mica, carbonate minerals and limonitic gossan associated with elevated gold, consistent with a listwaenite lode-gold model.

Some or all of these targets may be the subject of drill testing in 2013. 

Property Wide target definition

As the project operator since June 2012, Pilot Gold designed and conducted a comprehensive, systematic, property-wide exploration program composed of grid-based soil sampling, regional prospecting and rock sampling, airborne electromagnetic and magnetic surveys, and geological mapping. The program was implemented to refine and discover new targets on the TV Tower property, and has been successful to date. Pilot Gold will continue to extend geological mapping and sampling to all parts of the property in 2013 and to identify and refine new drill targets.

About TV Tower:

TV Tower is a joint venture between Pilot Gold (40%) and Teck Madencilik Sanayi Ticaret A.S. (60%), a Turkish subsidiary of Teck Resources Limited (“Teck”). Pilot Gold is project operator at TV Tower and can increase its interest in the project to 60%, through sole funding 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).

Moira Smith, Ph.D., P.Geo., 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. Dr. Smith has consented to the inclusion of the technical information in the form and context in which it appears in this news release.  Drill composites were calculated using cut-offs of 0.3, 3.0 and 10.0 g/t Au. Drill intersections are reported as drilled thicknesses. True widths of the mineralized intervals are interpreted to be between 50-100% of the reported lengths. Drill samples were assayed by AcmeLabs in Ankara, Turkey and Vancouver, B.C. for gold by Fire Assay of a 30 gram (1 assay ton) charge with ICP-ES or AAS finish, or if over 5.0 g/t were re-assayed and completed with a gravimetric finish. Ag and Cu were determined by ICP-MS, with overlimits (>100 ppm Ag or >10,000 ppm Cu) completed by fire assay with gravimetric finish (Ag) or 4-acid digestion with ICP-ES finish (Cu). Metallic screen techniques were used to assay a high-grade gold interval in KCD-50. QA/QC 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. 

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 (“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 yielding a mineral resource.

ABOUT PILOT GOLD

Pilot Gold is a well-funded gold exploration company led by a proven technical team that continues to discover and define high-quality assets featuring strong grades, meaningful size and mining-friendly addresses. Our three key assets include interests in the TV Tower and Halilaga projects in Turkey, and the Kinsley Mountain project in Nevada, each of which has the ability to become a foundational asset. We also have a pipeline of projects characterized by large land positions and district-wide potential that can meet our growth needs for years to come.

For more information, visit www.pilotgold.com or contact:

Investors:
Patrick Reid, VP, Corporate Affairs
Phone: 604-632-4677 or Toll Free 1-877-632-4677
This email address is being protected from spambots. You need JavaScript enabled to view it.

Media:
Ian Noble, Director, Corporate Communications
Phone: 604-809-8750
This email address is being protected from spambots. You need JavaScript enabled to view it.

Further information is available in the technical report entitled "Updated Technical Report on the TV Tower Exploration Property, Çanakkale, Western Turkey”, effective July 15, 2012 and dated August 3, 2012, prepared by Paul Gribble, B.Sc., C.Eng., FIMMM, UK Manager, Geology of Tetra Tech WEI Inc., under Pilot Gold’s Issuer Profile on SEDAR (www.sedar.com).

All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to Pilot Gold within the meaning of applicable securities laws, including statements that address timing of exploration and development plans at the Company’s mineral projects. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold, copper, silver and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources and mineral reserves, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Pilot Gold and there is no assurance they will prove to be correct.

Such forward-looking information, including, but not limited to, statements that address reserve or resource potential, potential quantity and/or grade of minerals, potential size of a mineralized zone, potential expansion of mineralization, the timing and results of future resource estimates, proposed timing of exploration and development plans at the Company’s mineral projects, and the estimation of mineral reserves and resources involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of Pilot Gold to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information.

Such factors include, among others, risks related to the interpretation of results at certain of our exploration properties, reliance on technical information provided by our joint venture partners or other third parties as related to any of our exploration properties; changes in project parameters as plans continue to be refined; successfully completing the earn-in on the TV Tower project, including the ability to incur the minimum annual Expenditure Requirements and future issuance of common shares as consideration to complete the earn-in agreement; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; current and proposed exploration and development; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; uses of funds in general including future capital expenditures, exploration expenditures and other expenses for specific operations; the timing and success of exploration activities generally; achievement of identified tangible project milestones at TV Tower; delays in permitting; satisfaction of Turkish requirements relating to the periodic submissions of Environmental Impact Assessments; possible claims against the Company or its joint venture partners; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration as well as those factors discussed in the Annual Information Form for the year ended December 31, 2012, dated March 27, 2013 in the section entitled "Risk Factors", under Pilot Gold’s SEDAR profile at www.sedar.com.

Although Pilot Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Pilot Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. Accordingly, readers should not place undue reliance on forward-looking information. Further details relating to Pilot Gold are also available in our Annual Information Form, available under Pilot Gold’s SEDAR profile at www.sedar.com.

13-12

Initial 2013 drill results strengthen continuity of silver zone, intersect gold mineralization down-dip  

VANCOUVER, B.C. – Pilot Gold Inc. (PLG - TSX) (“Pilot Gold” or the “Company”) is pleased to report that the first 10 holes of the 2013 drill campaign at TV Tower’s KCD target returned exceptional results from the silver zone and indicate extension of the stratiform gold zone down-dip to the north.

The 2013 program at KCD is primarily focused on infill and step-out drilling of the silver zone, and testing the gold zone down-dip to the north and along strike to the west-northwest. Initial highlights include KCD-108, the second best silver hole drilled at KCD to date based on grams by metres, and KCD-109, which encountered high-grade gold of 9.75 g/t gold (Au) over 3.0 metres down-dip along the footwall fault zone.

Drill highlights

Silver zone:

• 93.0 g/t silver (Ag) over 122.7 metres in KCD-108
• 51.5 g/t Ag over 82.6 metres in KCD-115
• 31.8 g/t Ag over 107.7 metres in KCD-114

Gold zone:

• 1.63 g/t Au over 40.7 metres in KCD-109, including
  
  • 9.75 g/t Au over 3.0 metres
• 1.89 g/t Au, 26.4 g/t silver (Ag) and 0.21% copper (Cu) over 4.0 metres in KCD-112; and
  
  • 3.53 g/t Au, 15.6 g/t Ag and 0.28% Cu over 7.6 metres

“We are extremely pleased that the 2013 drill program is building on last year’s campaign, revealing consistently strong mineralized runs in the silver zone and encouraging results in the gold zone,” said Matt Lennox-King, President and CEO, Pilot Gold. “We look forward to the results from the step-out drilling now underway at KCD.”

For comprehensive tables of results related to silver mineralization, please click:
http://www.pilotgold.com/sites/default/files/TVTowerDrillResultsSilver1312.pdf

For comprehensive tables of results related to gold mineralization, please click:
http://www.pilotgold.com/sites/default/files/TVTowerDrillResultsGold1312.pdf

For a map highlighting recent drilling, please click:
http://www.pilotgold.com/sites/default/files/TVTowerDrillMap1312.pdf

Gold has been encountered in drilling over an area measuring approximately 400 by 250 metres at the KCD target. The silver zone partially overlaps and overlies the gold-silver-copper zone of mineralization, and consists of a gently north-dipping, tabular zone of mineralization over an area measuring approximately 600 by 400 metres. It is exposed on surface along the southern margin of the zone, and under shallow cover further to the north.

Pilot Gold has budgeted for 30,000 metres of drilling at TV Tower in 2013. Drill results released today form part of an extensive second-year exploration program consisting of 15,000 metres of diamond core drilling at the KCD target. Approximately 6,500 metres in 24 holes at KCD have been completed, with assays pending for 14 holes. The KCD program was launched on March 23, 2013, and three diamond core drills are currently in operation.

Pilot Gold plans to drill 7,500 metres in 2013 at both Kayali and Columbaz, two high-priority TV Tower projects. The Kayali high sulphidation, shallow oxide gold target is located approximately eight kilometres south of the KCD target. The Columbaz Target is located approximately two kilometres south of the KCD target, and consists of low sulphidation gold-silver veins that have been traced discontinuously over an east-northeast strike length of up to 1,000 metres.

About TV Tower:

TV Tower is a joint venture between Pilot Gold (40%) and Teck Madencilik Sanayi Ticaret A.S. (60%), a Turkish subsidiary of Teck Resources Limited (“Teck”). Pilot Gold is project operator at TV Tower and can increase its interest in the project to 60%, through sole funding 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).

Moira Smith, Ph.D., P.Geo., 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 information contained in the release is accurate. Drill composites were calculated using cut-offs of 0.3, 3.0 and 10.0 g/t Au. Drill intersections are reported as drilled thicknesses. True widths of the mineralized intervals are interpreted to be between 50-100% of the reported lengths. Drill samples were assayed by AcmeLabs in Ankara, Turkey and Vancouver, B.C. for gold by Fire Assay of a 30 gram (1 assay ton) charge with ICP-ES or AAS finish, or if over 5.0 g/t were re-assayed and completed with a gravimetric finish. Ag and Cu were determined by ICP-MS, with overlimits (>100 ppm Ag or >10,000 ppm Cu) completed by fire assay with gravimetric finish (Ag) or 4-acid digestion with ICP-ES finish (Cu). Metallic screen techniques were used to assay a high-grade gold interval in KCD-50. QA/QC 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. 

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 (“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 yielding a mineral resource.

ABOUT PILOT GOLD

Pilot Gold is a well-funded gold exploration company led by a proven technical team that continues to discover and define high-quality projects featuring strong grades, meaningful size and mining-friendly addresses. Our three key assets include interests in the TV Tower and Halilaga projects in Turkey, and the Kinsley Mountain project in Nevada, each of which has the ability to become a foundational asset. We also have a pipeline of projects characterized by large land positions and district-wide potential that can meet our growth needs for years to come.

For more information, visit www.pilotgold.com or contact:

Investors:
Patrick Reid, VP, Corporate Affairs
Phone: 604-632-4677 or Toll Free 1-877-632-4677
This email address is being protected from spambots. You need JavaScript enabled to view it.

Media:
Ian Noble, Director, Corporate Communications
Phone: 604-809-8750
This email address is being protected from spambots. You need JavaScript enabled to view it.

Further information is available in the technical report entitled "Updated Technical Report on the TV Tower Exploration Property, Çanakkale, Western Turkey”, effective July 15, 2012 and dated August 3, 2012, prepared by Paul Gribble, B.Sc., C.Eng., FIMMM, UK Manager, Geology of Tetra Tech WEI Inc., under Pilot Gold’s Issuer Profile on SEDAR (www.sedar.com).  

All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to Pilot Gold within the meaning of applicable securities laws, including statements that address timing of exploration and development plans at the Company’s mineral projects. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold, copper, silver and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources and mineral reserves, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Pilot Gold and there is no assurance they will prove to be correct.

Such forward-looking information, including, but not limited to, statements that address reserve or resource potential, potential quantity and/or grade of minerals, potential size of a mineralized zone, potential expansion of mineralization, the timing and results of future resource estimates, proposed timing of exploration and development plans at the Company’s mineral projects, and the estimation of mineral reserves and resources involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of Pilot Gold to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information.

Such factors include, among others, risks related to the interpretation of results at certain of our exploration properties, reliance on technical information provided by our joint venture partners or other third parties as related to any of our exploration properties; changes in project parameters as plans continue to be refined; successfully completing the earn-in on the TV Tower project, including the ability to incur the minimum annual Expenditure Requirements and future issuance of common shares as consideration to complete the earn-in agreement; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; current and proposed exploration and development; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; uses of funds in general including future capital expenditures, exploration expenditures and other expenses for specific operations; the timing and success of exploration activities generally; achievement of identified tangible project milestones at TV Tower; delays in permitting; satisfaction of Turkish requirements relating to the periodic submissions of Environmental Impact Assessments; possible claims against the Company or its joint venture partners; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration as well as those factors discussed in the Annual Information Form for the year ended December 31, 2012, dated March 27, 2013 in the section entitled "Risk Factors", under Pilot Gold’s SEDAR profile at www.sedar.com.

Although Pilot Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Pilot Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. Accordingly, readers should not place undue reliance on forward-looking information. Further details relating to Pilot Gold are also available in our Annual Information Form, available under Pilot Gold’s SEDAR profile at www.sedar.com. 

20,000 metre drill program designed to expand the 2.2 kilometre-long mineralization trend and discover additional gold at new regional targets

VANCOUVER, B.C. – Pilot Gold Inc. (“Pilot Gold or the “Company”) (TSX: PLG) announced today it has begun a 20,000-metre drill campaign at Kinsley Mountain, Nevada, following on an effective 2012 drilling and exploration campaign that defined and expanded gold mineralization over a 2.2 kilometre-long trend.

Drill highlights from the 2012 program include:

• 6.03 g/t gold over 13.7 metres in hole PK061, including 15.18 g/t gold over 4.6 metres;
• 5.48 g/t gold over 20.4 metres in hole PK014C, including 16.43 g/t gold over 5.5 metres; and
• 2.30 g/t gold over 19.8 metres in hole PK057.

(For a table of Kinsley drill results from 2011-2012, including non-reportable intercepts, please click here: http://pilotgold.com/sites/default/files/KinsleyDrillTable1314.pdf)

“We are very excited to launch our next exploration program at Kinsley, and begin building on the success achieved in 2012,” stated Matt Lennox-King, President and CEO, Pilot Gold. “The 2012 program was pivotal as it provided ‘proof-of-concept’ that application of the model our team developed and used at Long Canyon1 is effective at Kinsley in targeting specific mineralized stratigraphic units and structures. Since then, we have significantly added to our land package and identified new target areas with rock chip samples of up to 3.3 g/t gold, more than one kilometre from the historic pits.”

The exploration program is designed to extend and further define Kinsley’s high-grade and bulk-tonnage mineralization with an aggressive 20,000 metres of core and RC drilling as well as additional geophysical, engineering, metallurgical surveys, and district wide exploration.

Kinsley Mountain exhibits near-surface mineralization similar to other Carlin-style, sediment hosted gold systems. Gold mineralization is largely oxidized, and hosted in strataform zones within Cambrian-Ordovician shelf carbonates, collapse breccias, and specific high and low angle structures.  Pilot Gold has also drilled high grade sulfide mineralization. In certain locations, such as the West Flank target, the Company has drilled through this sulphide material and back into fully oxidized mineralization.

In 2012, Pilot Gold completed a successful 12,000-metre infill and step-out drill program that defined and expanded upon the mineralized zones identified by previous operators. In conjunction with drilling, a comprehensive regional exploration effort generated new targets up to seven kilometres to the north of the historic open pits. A new mineralized zone was intersected in drilling (Candland Canyon) and the Western Flank Zone has been expanded to cover an area 600 metres by 100 metres. A three-dimensional model of geology and mineralization was created in order to aid in the selection of new, high-grade drill targets by extrapolating controls outward from the pits.

About Kinsley Mountain

The Kinsley property consists of 380 claims covering 7,650 acres (3,095 hectares) on Bureau of Land Management (BLM) land. The Kinsley Mountain project is a joint venture with a subsidiary of Nevada Sunrise Gold Corporation (“NEV”).  Pilot Gold currently holds a 65% interest.  Each partner is currently responsible to fund its share of expenditures on the project.

Kinsley Mountain is located south of Newmont Mining’s Long Canyon deposit along the Long Canyon Trend,  with a stratigraphy, structure and mineralization-style common to other sediment-hosted gold systems in northeast Nevada1. Gold mineralization was discovered on Kinsley Mountain in 1984, and subsequent exploration defined sediment-hosted gold mineralization along the Kinsley Trend, including at least five zones hosted in strata ranging from Middle to Late Cambrian in age.

The property hosts a past-producing mine with an extensive exploration database and numerous, untested gold targets. Between 1994 and 1999, Alta Gold Co. reportedly produced approximately 138,000 ounces of gold at an average grade of 1.4 g/t gold (head grade of 1.8 g/t gold) from oxide ore in a heap leach operation.  Alta Gold abandoned the mine and left an undetermined amount of mineralization in the ground during a period of low gold prices. At that time, gold discoveries were still being made and existing historic resources had not been exhausted2. In addition to the shallow oxide mineralization, several deeper zones of sulfide mineralization that were encountered in drilling were not followed up on.

1Kinsley 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").  There are no assurances that the geological similarities to Newmont Mining’s Long Canyon project or other project along the Long Canyon Trend, will result in the establishment of any resource estimates at Kinsley, or that the Kinsley Project can be advanced in a similar timeframe. 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.   

2A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves, and Pilot Gold is not treating the historical estimate as current mineral resources or reserves. The historic resource should not be relied upon and Pilot Gold does not infer that there is any demonstrated economic viability.

Further information is available in the technical report entitled:“Technical Report on the Kinsley Project, Elko County, Nevada, U.S.A.”, dated March 26, 2012, and prepared by Michael M. Gustin, CPG and Senior Geologist for Mine Development Associates, Inc., available under Pilot Gold’s issuer profile on SEDAR at www.sedar.com.

Vance Spalding, CPG, VP Exploration, 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. Mr. Spalding has consented to the inclusion of the technical information in the form and context in which it appears in this news release. 

ABOUT PILOT GOLD

Pilot Gold is a well-funded gold exploration company led by a proven technical team that continues to discover and define high-quality assets featuring strong grades, meaningful size and mining-friendly addresses. Our three key assets include interests in the TV Tower and Halilaga projects in Turkey, and the Kinsley Mountain project in Nevada, each of which has the ability to become a foundational asset. We also have a pipeline of projects characterized by large land positions and district-wide potential that can meet our growth needs for years to come.

For more information, visit www.pilotgold.com or contact:

Investors:
Patrick Reid, VP, Corporate Affairs
Phone: 604-632-4677 or Toll Free 1-877-632-4677
This email address is being protected from spambots. You need JavaScript enabled to view it.

Media:
Ian Noble, Director, Corporate Communications
Phone: 604-809-8750
This email address is being protected from spambots. You need JavaScript enabled to view it.

All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to Pilot Gold within the meaning of applicable securities laws, including statements that address timing of exploration and development plans at the Company’s mineral projects. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold, copper, silver and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources and mineral reserves, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Pilot Gold and there is no assurance they will prove to be correct.

Such forward-looking information, including, but not limited to, statements that address reserve or resource potential, potential quantity and/or grade of minerals, potential size of a mineralized zone, potential expansion of mineralization, the timing and results of future resource estimates, proposed timing of exploration and development plans at the Company’s mineral projects, and the estimation of mineral reserves and resources involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of Pilot Gold to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information.

Such factors include, among others, risks related to the interpretation of and actual results of historical production at Kinsley Mountain, reliance on technical information provided by our joint venture partners or other third parties as related to any of our exploration properties including access to historical information on the Kinsley Mountain property, as well as specific historic data associated with and drill results from the property, and related information from Nevada Sunrise LLC and Nevada Sunrise Gold Corporation the license and lease owners respectively on the Kinsley Mountain property; changes in project parameters as plans continue to be refined; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; current and proposed exploration and development; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; uses of funds in general including future capital expenditures, exploration expenditures and other expenses for specific operations; the timing and success of exploration activities generally; delays in permitting; possible claims against the Company or its joint venture partners; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration as well as those factors discussed in the Annual Information Form for the year ended December 31, 2012, dated March 27, 2013 (the “AIF”) in the section entitled "Risk Factors", under Pilot Gold’s SEDAR profile at www.sedar.com.

Although Pilot Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Pilot Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. Accordingly, readers should not place undue reliance on forward-looking information. Further details relating to Pilot Gold are also available in our Annual Information Form, available under Pilot Gold’s SEDAR profile at www.sedar.com. 

Drilling extends silver mineralization by 100 metres, expands KCD’s mineralized zone to 600 metres by 500 metres

VANCOUVER, B.C. – Pilot Gold Inc. (PLG - TSX) (“Pilot Gold” or the “Company”) is pleased to report that drilling focused on the near-surface zone of silver-only mineralization at the KCD target at TV Tower continues to return strong results, including 327 g/t silver (Ag) over 14.5 metres in step-out drilling to the northeast. 

Recent assay results indicate that silver mineralization extends at least another 100 metres along strike west-northwest to east-southeast at KCD, now encompassing an area measuring 600 metres by 500 metres. Drill results in this release include step-out and infill drilling on the silver zone, which partially overlies the high-grade gold-silver-copper zone at KCD. Results include:

Step-out highlights:

• 327 g/t Ag over 14.5 metres in KCD-134, including 547 g/t Ag over 8.5 metres

• 71.7 g/t Ag over 53.9 metres in KCD-120, including 189 g/t Ag over 14.5 metres

• 36.1 g/t Ag over 58.1 metres in KCD 130, including 64.8 g/t Ag over 16.5 metres

Infill highlights:

• 59.1 g/t Ag over 59.5 metres in KCD-124, including 67.6 g/t Ag over 11.0 metres

• 63.2 g/t Ag over 43.1 metres in KCD-117, including 113 g/t Ag over 19.3 metres

•  49.2 g/t Ag over 58.5 metres in KCD-118

“Pilot Gold became operator at TV Tower a little more than a year ago and, beginning with results at KCD, we have made it one of the most exciting exploration projects globally due to exceptional drill results in a mining- friendly jurisdiction,” said Matt Lennox-King, President & CEO, Pilot Gold. “We have also identified many new and compelling targets across the property that we plan to explore and drill this year. We believe TV Tower to be a district in the making.”

All true widths are 50-100% of reported widths unless otherwise stated. All intervals of no sampling have been assigned zero grade for the purposes of compositing.

For a comprehensive table of results related to silver mineralization, please click: http://www.pilotgold.com/sites/default/files/TVTSilver1315.pdf

For a comprehensive table of results related to gold mineralization, please click: http://www.pilotgold.com/sites/default/files/TVTGold1315.pdf

For a map highlighting recent drilling, please click: http://www.pilotgold.com/sites/default/files/TVTowerDrillMap1315.pdf

The 2013 program at KCD is primarily focused on infill and step-out drilling of the silver zone, and testing the gold zone down-dip to the north and along strike to the west-northwest. The drill results from KCD form part of an aggressive exploration program consisting of ~15,000 metres of diamond core and RC drilling, geologic modelling and ongoing surface work. Approximately 13,400 metres in 53 holes have been completed at KCD this year, with assays pending for 16 holes. At the nearby Kayali bulk tonnage, oxide gold system approximately 1,100 metres have been completed with assays pending for four holes.

About TV Tower:

TV Tower is a joint venture between Pilot Gold (40%) and Teck Madencilik Sanayi Ticaret A.S. (60%), a Turkish subsidiary of Teck Resources Limited (“Teck”). Pilot Gold is project operator at TV Tower and can increase its interest in the project to 60%, through sole funding of exploration over a three-year period. (See press release dated September 12, 2012 for full details of the deal terms.)

Located on the Biga Peninsula of northwest Turkey, the TV Tower project 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).

First pass drilling in 2010 resulted in new discoveries at the KCD and Kayali epithermal gold systems. Ongoing exploration by Pilot Gold continues to uncover robust new targets, including the bonanza-grade Columbaz low sulphidation epithermal vein system that returned 39 g/t gold and 290 g/t silver in 2012 rock chip sampling.

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 (“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 yielding a mineral resource.

Moira Smith, Ph.D., P.Geo., 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 information contained in the release is accurate. Drill composites were calculated using cut-offs of 10, 50 and 100 g/t Ag. Drill intersections are reported as drilled thicknesses. True widths of the mineralized intervals are interpreted to be between 50-100% of the reported lengths. Drill samples were assayed by AcmeLabs in Ankara, Turkey and Vancouver, B.C. for gold by Fire Assay of a 30 gram (1 assay ton) charge with ICP-ES or AAS finish, or if over 5.0 g/t were re-assayed and completed with a gravimetric finish. Metallic screen techniques were employed to assay a 12-metre interval in KCD-50. Approximately 500 grams of coarse reject material are pulverized and screened. Two splits of the fine fraction are assayed, as well as all material that does not pass through the screen (the coarse fraction). The final gold assay reported is a weighted average of the coarse and fine fractions. Ag and Cu were determined by aqua regia ICP-MS, with overlimits (>100 ppm Ag or >10,000 ppm Cu) completed by fire assay with gravimetric finish (Ag) or 4-acid digestion with ICP-ES (Cu). QA/QC 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. 

ABOUT PILOT GOLD

Pilot Gold is a well-funded gold exploration company led by a proven technical team that continues to discover and define high-quality projects featuring strong grades, meaningful size and mining-friendly addresses. Our three key assets include interests in the TV Tower and Halilaga projects in Turkey, and the Kinsley Mountain project in Nevada, each of which has the ability to become a foundational asset. We also have a pipeline of projects characterized by large land positions and district-wide potential that can meet our growth needs for years to come.

For more information, visit www.pilotgold.com or contact:

Investors:
Patrick Reid, VP Corporate Affairs
Phone: 604-632-4677 or Toll Free 1-877-632-4677
This email address is being protected from spambots. You need JavaScript enabled to view it.

Media:
Ian Noble, Director, Corporate Communications
Phone: 604-809-8750
This email address is being protected from spambots. You need JavaScript enabled to view it.

Further information is available in the technical report entitled "Updated Technical Report on the TV Tower Exploration Property, Çanakkale, Western Turkey”, effective July 15, 2012 and dated August 3, 2012, prepared by Paul Gribble, B.Sc., C.Eng., FIMMM, UK Manager, Geology of Tetra Tech WEI Inc., under Pilot Gold’s Issuer Profile on SEDAR ().

All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to Pilot Gold within the meaning of applicable securities laws, including statements that address timing of exploration and development plans at the Company’s mineral projects. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold, copper, silver and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources and mineral reserves, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Pilot Gold and there is no assurance they will prove to be correct.

 Such forward-looking information, including, but not limited to, statements that address reserve or resource potential, potential quantity and/or grade of minerals, potential size of a mineralized zone, potential expansion of mineralization, the timing and results of future resource estimates, proposed timing of exploration and development plans at the Company’s mineral projects, and the estimation of mineral reserves and resources involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of Pilot Gold to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information.

Such factors include, among others, risks related to the interpretation of results at certain of our exploration properties, reliance on technical information provided by our joint venture partners or other third parties as related to any of our exploration properties; changes in project parameters as plans continue to be refined; successfully completing the earn-in on the TV Tower project, including the ability to incur the minimum annual Expenditure Requirements and future issuance of common shares as consideration to complete the earn-in agreement; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; current and proposed exploration and development; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; uses of funds in general including future capital expenditures, exploration expenditures and other expenses for specific operations; the timing and success of exploration activities generally; achievement of identified tangible project milestones at TV Tower; delays in permitting; satisfaction of Turkish requirements relating to the periodic submissions of Environmental Impact Assessments; possible claims against the Company or its joint venture partners; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration as well as those factors discussed in the Annual Information Form for the year ended December 31, 2012, dated March 27, 2013 in the section entitled "Risk Factors", under Pilot Gold’s SEDAR profile at www.sedar.com.

Although Pilot Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Pilot Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. Accordingly, readers should not place undue reliance on forward-looking information. Further details relating to Pilot Gold are also available in our Annual Information Form, available under Pilot Gold’s SEDAR profile at www.sedar.com.

New gold results extend continuity of high-grade gold mineralization in the northwestern portion of the gold zone

VANCOUVER, B.C. – Pilot Gold Inc. (PLG - TSX) (“Pilot Gold” or the “Company”) is pleased to report that recent drilling focused on the northwestern portion of the 400-metre by 300-metre gold zone at the KCD target, TV Tower has returned 15.3 g/t gold over 45.2 metres in KCD-142, including an interval of 386 g/t gold over 1.5 metres. 

The intercept in KCD-142 is located approximately 120 metres north of KCD-50 (See Pilot Gold news release dated January 22, 2013 and titled Pilot Gold reports 227 g/t gold over 12.0 metres from metallic screen re-assay of TV Tower’s KCD-50). The high-grade interval in KCD-142 (386 g/t gold over 1.5 metres) is visually very similar to the high-grade interval in KCD-50, including the presence of visible gold in veins oriented nearly perpendicular to the core axis, suggesting that the intercept may represent approximately true thickness. The presence of this style and tenor of gold mineralization a significant distance from KCD-50, as well as other holes with high-grade intercepts along this trend, illustrates the excellent continuity of high-grade mineralization in this area.

Recent highlights include:

• 15.3 g/t gold over 45.2 metres in KCD-142, including

• 2.6 g/t gold over 56.5 metres in KCD-141,

•  1.5 g/t gold over 57.3 metres in KCD-143

•  6.3 g/t gold over 9.0 metres in KCD-144,

Holes KCD-141, KCD-143 and KCD-144 were fanned off a single site located 110 metres northwest of KCD-50 and were designed to infill a sparsely drilled area where the geological model predicted the presence of gold mineralization.  Additional drilling to the north of this area is planned to extend this zone.

“The current phase of drilling, focused on areas to the north and west of the original discovery, confirms the presence of high-grade gold mineralization extending into sparsely drilled areas predicted to host gold based on our geological model,” stated Dr. Moira Smith, Chief Geologist, Pilot Gold. “These exceptional drill results will allow us to model high-grade gold in the upcoming resource estimate with greater confidence.”

All true widths are 50-100% of reported widths unless otherwise stated. All intervals of no sampling have been assigned zero grade for the purposes of compositing. All intervals are reported as weighted arithmetic averages and no cutting has been applied.

For a comprehensive table of results related to gold mineralization, please click: http://www.pilotgold.com/sites/default/files/TVTowerDrillResults1316.pdf

For a map highlighting recent drilling, please click: http://www.pilotgold.com/sites/default/files/TVTowerDrillMap1316.pdf

The 2013 program at KCD is primarily focused on infill and step-out drilling of the silver zone, and testing the gold zone down-dip to the north and along strike to the west-northwest. The drill results from KCD form part of an aggressive exploration program consisting of ~15,000 metres of diamond core and RC drilling, geologic modelling and ongoing surface work. Approximately 14,000 metres in 55 holes have been completed at KCD this year, with assays pending for 13 holes.

Previous KCD highlights in the Pilot Gold drilling program since August 2012:

• KCD-102: 26.6 g/t gold, 47.2 g/t silver, 2.12% copper over 16.5m
• KCD-80: 6.59 g/t gold over 34.2m
• KCD-79: 14.90 g/t gold over 14.1m
• KCD-75: 2.33 g/t gold over 93.5m
• KCD-65: 2.79 g/t gold, 10.1 g/t silver, 0.67% copper over 61.3m
• KCD-50: 227 g/t gold over 12.0m
• KCD-134: 327 g/t silver over 14.5m
• KCD-108: 93.0 g/t silver over 122.7m
• KCD-104: 69.0 g/t silver over 94.0m
• KCD-94: 85.9 g/t silver over 135.5m

At the nearby Kayali bulk tonnage, oxide gold system approximately 1,400 metres have been completed with assays pending for four holes.

About TV Tower:

TV Tower is a joint venture between Pilot Gold (40%) and Teck Madencilik Sanayi Ticaret A.S. (60%), a Turkish subsidiary of Teck Resources Limited (“Teck”). Pilot Gold is project operator at TV Tower and can increase its interest in the project to 60%, through sole funding of exploration over a three-year period. (See press release dated September 12, 2012 for full details of the deal terms.)

Located on the Biga Peninsula of northwest Turkey, the TV Tower project 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).

First pass drilling in 2010 resulted in new discoveries at the KCD and Kayali epithermal gold systems. Ongoing exploration by Pilot Gold continues to uncover robust new targets, including the bonanza-grade Columbaz low sulphidation epithermal vein system that returned 39 g/t gold and 290 g/t silver in 2012 rock chip sampling.

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 (“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 yielding a mineral resource.

Moira Smith, Ph.D., P.Geo., 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 information contained in the release is accurate. Drill composites were calculated using cut-offs of 10, 50 and 100 g/t Ag. Drill intersections are reported as drilled thicknesses. True widths of the mineralized intervals are interpreted to be between 50-100% of the reported lengths. Drill samples were assayed by AcmeLabs in Ankara, Turkey and Vancouver, B.C. for gold by Fire Assay of a 30 gram (1 assay ton) charge with ICP-ES or AAS finish, or if over 5.0 g/t were re-assayed and completed with a gravimetric finish. Metallic screen techniques are employed to assay selected very high grade intervals. Approximately 500 grams of coarse reject material are pulverized and screened. Two splits of the fine fraction are assayed, as well as all material that does not pass through the screen (the coarse fraction). The final gold assay reported is a weighted average of the coarse and fine fractions. Ag and Cu were determined by aqua regia ICP-MS, with overlimits (>100 ppm Ag or >10,000 ppm Cu) completed by fire assay with gravimetric finish (Ag) or 4-acid digestion with ICP-ES (Cu). QA/QC 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. 

ABOUT PILOT GOLD

Pilot Gold is a well-funded gold exploration company led by a proven technical team that continues to discover and define high-quality projects featuring strong grades, meaningful size and mining-friendly addresses. Our three key assets include interests in the TV Tower and Halilaga projects in Turkey, and the Kinsley Mountain project in Nevada, each of which has the ability to become a foundational asset. We also have a pipeline of projects characterized by large land positions and district-wide potential that can meet our growth needs for years to come.

For more information, visit www.pilotgold.com or contact:

Investors:
Patrick Reid, VP Corporate Affairs
Phone: 604-632-4677 or Toll Free 1-877-632-4677
This email address is being protected from spambots. You need JavaScript enabled to view it.

Media:
Ian Noble, Director, Corporate Communications
Phone: 604-809-8750
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Further information is available in the technical report entitled "Updated Technical Report on the TV Tower Exploration Property, Çanakkale, Western Turkey”, effective July 15, 2012 and dated August 3, 2012, prepared by Paul Gribble, B.Sc., C.Eng., FIMMM, UK Manager, Geology of Tetra Tech WEI Inc., under Pilot Gold’s Issuer Profile on SEDAR ().

All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to Pilot Gold within the meaning of applicable securities laws, including statements that address timing of exploration and development plans at the Company’s mineral projects. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold, copper, silver and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources and mineral reserves, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Pilot Gold and there is no assurance they will prove to be correct.

 Such forward-looking information, including, but not limited to, statements that address reserve or resource potential, potential quantity and/or grade of minerals, potential size of a mineralized zone, potential expansion of mineralization, the timing and results of future resource estimates, proposed timing of exploration and development plans at the Company’s mineral projects, and the estimation of mineral reserves and resources involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of Pilot Gold to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information.

Such factors include, among others, risks related to the interpretation of results at certain of our exploration properties, reliance on technical information provided by our joint venture partners or other third parties as related to any of our exploration properties; changes in project parameters as plans continue to be refined; successfully completing the earn-in on the TV Tower project, including the ability to incur the minimum annual Expenditure Requirements and future issuance of common shares as consideration to complete the earn-in agreement; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; current and proposed exploration and development; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; uses of funds in general including future capital expenditures, exploration expenditures and other expenses for specific operations; the timing and success of exploration activities generally; achievement of identified tangible project milestones at TV Tower; delays in permitting; satisfaction of Turkish requirements relating to the periodic submissions of Environmental Impact Assessments; possible claims against the Company or its joint venture partners; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration as well as those factors discussed in the Annual Information Form for the year ended December 31, 2012, dated March 27, 2013 in the section entitled "Risk Factors", under Pilot Gold’s SEDAR profile at www.sedar.com.

Although Pilot Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Pilot Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. Accordingly, readers should not place undue reliance on forward-looking information. Further details relating to Pilot Gold are also available in our Annual Information Form, available under Pilot Gold’s SEDAR profile at www.sedar.com.

Strong drill results at KCD, programs launched at Kayali and Kinsley Mountain, and $29 million in working capital to drive key milestones by year-end

VANCOUVER, B.C. – Pilot Gold Inc. (PLG - TSX) (“Pilot Gold” or the “Company”) is pleased to report its financial results for the second quarter ended June 30, 2013, and provides an update on activities highlighted by continued strong gold and silver drill results at TV Tower’s KCD target, the launch of drilling at TV Tower’s oxide gold Kayali target, and the resumption of drilling at Kinsley Mountain, Nevada.

“We believe the quality of our projects, our proven team and healthy treasury are strong differentiators in today’s market, and position Pilot Gold as a standout in the sector,” stated Matt Lennox-King, President and CEO, Pilot Gold. “We will continue to build on our success in the second half of 2013, with significant exploration drilling of an additional 29,000 metres at our priority projects, and expect to meet key resource and permitting milestones by year end.”

Q2 2013 HIGHLIGHTS AND SIGNIFICANT EVENTS SUBSEQUENT TO QUARTER-END:

• Continued to actively advance the TV Tower property, with approximately 14,800 metres drilled to date at the KCD target.  Approximately 75% of the second milestone expenditure requirement to earn-in to an additional 20% interest has been completed.
• Reported results from the first 42 drill holes from the 15,000-metre drill program at TV Tower’s KCD target, including:

              •  26.6 g/t gold, 47.2 g/t silver, and 2.12% copper over 16.5 metres in KCD-102, and

             •  15.3 g/t gold over 45.2 metres in KCD-142

• Commenced a 7,500-metre drill program on the bulk-tonnage, oxide gold Kayali target at TV Tower
• Launched 22,000-metre drill program at Kinsley in Nevada
• Sold our remaining 17.5% interest in the Gold Springs property to High Desert Gold for a 7.5% equity  interest in that company

WORK PROGRAM UPDATES

TV Tower:

Pilot Gold currently holds a 40% interest in the project and became project operator in 2012 with an option to increase the Company’s interest in TV Tower from 40% to 60%.  The $5-million, first-year minimum earn-in expenditure commitment was completed in January 2013. In March 2013, the Company issued 1,637,500 common shares to "TMST", a subsidiary of Teck Resources Limited ("Teck") the Company’s 60% joint venture partner at TV Tower, in connection with achieving this first milestone.  During the six months ended June 30, 2013, Pilot Gold had incurred approximately $5.56 million in Eligible Expenditures at TV Tower (year ended December 31, 2012: $4.77 million), and has $1.7 million remaining to surpass the second-year $7-million earn-in expenditure requirement. The 2013 program, with a budget of $7.9 million, is currently underway. 

The planned program at TV Tower for 2013 includes 30,000 metres of drilling at KCD, Kayali and other priority targets. At KCD, the 2013 drill program includes a planned 15,000 metres of infill and step-out drilling on the gold and silver zones and a staged metallurgical testing program. Drilling has begun at the Kayali bulk-tonnage, oxide target, with 7,500 metres planned in 2013. An additional 7,500 metres is planned at other promising targets upon receipt of forestry permits. In the six months ended June 30, 2013, approximately 13,700 metres of drilling had been completed in the 2013 program.  To date there have been approximately 18,000 metres drilled in the 2013 program.

Kinsley:

Kinsley is a Carlin-style, sediment hosted project and past producer located along the Long Canyon Trend in North Eastern Nevada. Pilot Gold earned a 65% interest in Kinsley Mountain in February 2013.  

Pilot Gold launched a planned 22,000 metre RC and core drill program on July 16, 2013. The current program is designed to extend and further define Kinsley’s high-grade and bulk-tonnage mineralization and will include geophysical, engineering, metallurgical surveys, and district wide exploration.  A subsidiary of Nevada Sunrise Gold Corporation (“NEV”) currently holds a 35% interest in Kinsley. The Company is project operator. To maintain their respective current pro rata interest, each joint venture partner is responsible to fund its share of expenditures at Kinsley.

The Company currently awaits receipt of an Approved Record of Decision from the United States Interior Department’s Bureau of Land Management (the "BLM") for a Plan of Operations.  Upon receipt, the approved Plan of Operations will allow for expanded exploration activities over an area of up to 70 acres in the southern third of the property, beyond the previously disturbed areas.  Currently, exploration is being conducted under the existing Notice of Intent.

Through June 30, 2013 the Company had capitalized approximately $0.70 million in expenditures at Kinsley (year ended December 31, 2012: $3.67 million).  During Q2 2013, $0.21 million was recovered from NEV, the Company’s partner at Kinsley pursuant to that company’s provisional funding of the first cash call (maintain its pro rata share of costs at Kinsley through to June 30, 2013).

A total of 1,542 metres has been completed to date under the 2013 program, with approximately $0.7 million incurred through June 30, 2013 of a budgeted $5.2 million for the year1.

Halilaga:

The Company holds a 40% interest in Halilaga, a copper-gold porphyry located 20 kilometres southeast of TV Tower. Halilaga advanced considerably during 2012, with an initial resource estimate and the completion of a preliminary economic assessment (the "Halilaga PEA").  Based on recommendations of the authors of the Halilaga PEA, Pilot Gold has initiated a number of strategic studies in conjunction with TMST, the Company’s 60% partner and operator at Halilaga. The strategic studies underway include economic, metallurgical, environmental and engineering analyses to advance the concept and potential of this porphyry project.

From January 1, 2013 to June 30, 2013, the Company’s share of expenditures at Halilaga was $0.1 million (year ended December 31, 2012: $1.63 million).  Pilot Gold’s share of the budget for the year is $0.2 million.

Portfolio:

•  On July 8, 2013, the Company received the remaining $1 million cash component due from the sale of the Regent exploration property to Rawhide Mining LLC (“RMC”). Pursuant to the related agreement, Pilot Gold retains a net profits royalty of 15% on the property and is entitled to a sliding scale gold equivalent bonus payment, each of which is payable in certain circumstances should RMC achieve production at Regent.

• On August 2, 2013, the Company sold its remaining interest in the Gold Springs project to High Desert Gold Corporation for a 7.5% interest in that company, providing continued exposure to exploration and development at Gold Springs. As business terms of the transaction had been substantially agreed to prior to June 30, 2013, the Company impaired the carrying value of Gold Springs and recognized a loss of $0.4 million during Q2 2013 to fair value Pilot Gold’s share interest in Gold Springs with the value of agreed-upon consideration.

• With effect of August 1, 2013, Pilot Gold and Nevada Clean Magnesium Inc. agreed to replace the option agreement that provided the Company the ability to earn-in to an initial 60% of the Griffon property with an agreement for the purchase by Pilot Gold of a 100% interest of Griffon.  The Company issued 180,000 Common Shares pursuant to the acquisition agreement.

•  During the six-months ended June 30, 2013, the Company wrote-down its interest in the New Boston ($1.28 million) property as it no longer met the profile for continued retention in Pilot Gold’s portfolio of assets.     

TV Tower, Kinsley, Regent and Griffon are each early stage exploration projects, none of which 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 yielding a mineral resource.  There is also no certainty that Regent’s net profits royalty or gold equivalent bonus payment will be realized. 

Although there has been no economic analysis summarized in this press release relating to the Halilaga PEA, readers are cautioned that the Halilaga PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the Halilaga PEA will be realized.

SELECTED FINANCIAL DATA

The following selected financial data is derived from the Company’s unaudited condensed interim consolidated financial statements for the six month period ended June 30, 2013, as prepared in accordance with International Financial Reporting Standards.

Total assets decreased to $70.26 million as at June 30, 2013 (December 31, 2012: $72.39 million), and comprise primarily cash and short-term investments of $29.79 million (December 31, 2012: $37.38 million).  The decrease reflects the write down of deferred exploration expenditures ($1.37 million) relating to the New Boston and Buckskin North properties, translation of the Company’s assets held in entities with a Canadian dollar functional currency and cash outflows related to corporate activities through the six months ended June 30, 2013, offset by the value of a share issuance during the period pursuant to the TV Tower Agreement, and capitalised to the Earn-in Option non-current asset. The balance of current assets comprises receivables and prepayments of $3.24 million (December 31, 2012: $1.23 million) which have increased primarily due to the timing of payments from Orta Truva relating to work performed by the Company on TV Tower.

For the three and six months ended June 30, 2013, Pilot Gold reported a net loss of $3.84 million and $6.35 million respectively, compared to net losses of $1.38 million and $2.84 million for the same periods in the prior year.  The losses per share for the three and six month periods ended June 30, 2013 were $0.04 and $0.07 respectively (three and six months ended June 30, 2012: $0.02 and $0.05 per share).  The most significant contributors to the losses for the six months ended June 30, 2013 were the write down of deferred exploration expenditures ($1.37 million), the recognition of non-cash stock based compensation ($1.56 million) and the cost of wages and benefits ($0.92 million). These costs were offset by management fees received as part of the TV Tower agreement ($0.36 million) and interest earned on the Company’s cash deposits of $0.24 million. The most significant contributors to the comparative period loss were stock based compensation expenses and wages, offset by changes in the fair value of the Company’s financial instruments.  In light of the ongoing uncertainty and volatility in equity and debt markets for exploration companies, the Company continues to rationalize expenditures and exploration activity in an effort to conserve capital and streamline operations without impairing the ability to accomplish the goals management established at the beginning of the year for each of Pilot Gold’s material projects.

Other comprehensive losses for the three and six months ended June 30, 2013 were $1.62 million and $2.71 million (comprehensive losses of $0.98 million and $0.66 million for the same periods in the prior year).  The six month period ended June 30, 2013 includes a $2.84 million loss (six months ended June 30, 2012: $0.01 million) from the impact of exchange gains and losses arising from exchange differences on the translation of Pilot Gold’s foreign operations with a non-United States dollar functional currency, and amounts reclassified to the statement of loss relating to impaired equity investments of $0.13 million during the six months ended June 30, 2013 (six months ended June 30, 2012, loss of $0.66 million relating to the net loss on revaluation of the Company’s financial assets). The impact from exchange differences will vary from period to period depending on the rate of exchange. In the period between January 1, 2013 and June 30, 2013, there was a 5% change in the exchange rate between the United States and Canadian dollars.

Liabilities at June 30, 2013 and at December 31, 2012 reflect primarily accounts payable and accruals recorded at period end arising from ongoing activities.

This press release should be read in conjunction with Pilot Gold’s unaudited condensed interim consolidated financial statements and Management’s Discussion and Analysis for the six months ended June 30, 2013. These documents can be found on the Company’s website (www.pilotgold.com) or on SEDAR at www.sedar.com. All amounts are presented in United States dollars unless otherwise stated.

ABOUT PILOT GOLD

Pilot Gold is a well-funded gold exploration company led by a proven technical team that continues to discover and define high-quality projects featuring strong grades, meaningful size and mining-friendly addresses. Our three key assets include interests in the TV Tower and Halilaga projects in Turkey, and the Kinsley project in Nevada, each of which has the ability to become a foundational asset. We also have a pipeline of projects characterized by large land positions and district-wide potential that can meet our growth needs for years to come.

For more information, visit www.pilotgold.com or contact:

Investors:
Patrick Reid, VP Corporate Affairs
Phone: 604-632-4677 or Toll Free 1-877-632-4677
This email address is being protected from spambots. You need JavaScript enabled to view it.

Media:
Ian Noble, Director, Corporate Communications
Phone: 604-809-8750
This email address is being protected from spambots. You need JavaScript enabled to view it.

For more information on the TV Tower, Halilaga or Kinsley Mountain properties refer to the following technical reports filed on the Company’s website at www.pilotgold.com and under Pilot Gold’s SEDAR profile at : “Updated Technical Report on the TV Tower Exploration Property, Canakkale, Western Turkey”, effective July 15, 2012 and dated August 3, 2012 prepared by Paul Gribble, C.Eng., FIMMM; “Preliminary Economic Assessment Technical Report for the Halilaga Project, Turkey” effective August 27, 2012 and dated October 10, 2012 prepared by Gordon Doerksen, P.Eng., James Gray, P.Geo., Garth Kirkham, P.Geo., Dino Pilotto, P.Eng., Maritz Rykaart, P.Eng, and Kevin Scott, P.Eng.; and “Technical Report on the Kinsley Project, Elko County, Nevada, U.S.A.” effective February 15, 2012 and dated March 26, 2012 prepared by Michael Gustin, CPG and Moira Smith, Ph.D., P.Geo.

All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to Pilot Gold within the meaning of applicable securities laws, including statements that address timing of exploration and development plans at the Company’s mineral projects. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold, copper, silver and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources and mineral reserves, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Pilot Gold and there is no assurance they will prove to be correct.

Such forward-looking information, including, but not limited to, statements that address reserve potential, potential quantity and/or grade of minerals, potential size of a mineralized zone, potential expansion of mineralization, the timing and results of future resource estimates, proposed timing of exploration and development plans at the Company’s mineral projects, and the estimation of mineral reserves and resources involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of Pilot Gold to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information.

Such factors include, among others, risks related to the interpretation of results at certain of our exploration properties, reliance on technical information provided by our joint venture partners or other third parties as related to any of our exploration properties; changes in project parameters as plans continue to be refined; successfully completing the earn-in on the TV Tower project, including the ability to incur the minimum annual Expenditure Requirements and future issuance of common shares as consideration to complete the earn-in agreement; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; current and proposed exploration and development; timing of receipt of the Kinsley Plan of Operations; the intention or ability of NEV to fund its share of expenditures at Kinsley; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; uses of funds in general including future capital expenditures, exploration expenditures and other expenses for specific operations; the timing and success of exploration activities generally; delays in permitting; satisfaction of Turkish requirements relating to the periodic submissions of Environmental Impact Assessments; possible claims against the Company or its joint venture partners; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration as well as those factors discussed in the Annual Information Form of the Company dated March 27, 2013 (the “AIF”) in the section entitled "Risk Factors", under Pilot Gold’s SEDAR profile at .

Although Pilot Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Pilot Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. Accordingly, readers should not place undue reliance on forward-looking information. Further details relating to Pilot Gold are also available in the AIF, available under Pilot Gold’s SEDAR profile at . 

Company increases interest in priority project to 78%

VANCOUVER, B.C. - Pilot Gold Inc. ("Pilot Gold" or the "Company") (TSX: PLG) announced today it 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 August 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 NNE and SW of the historic pits.

Pilot Gold has completed 2858 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 g/t 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 meters in PK-39

For a table of Kinsley drill results (2011-2012), including non-reportable intercepts, please click here: http://www.pilotgold.com/sites/default/files/KinsleyDrillTable1314_0.pdf

For a property map outlining the area covered by the Plan of Operations, please click here: http://www.pilotgold.com/sites/default/files/PilotGold_Kinsley_maps.pdf

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 Corporation ("Intor"), a subsidiary of Nevada Sunrise Gold Corp., is the Company's joint venture partner at Kinsley. On August 14, 2013, Intor informed Pilot Gold that it had elected not to fund its portion of the approved 2013 budget for Kinsley Mountain. As a result, and further to the Company having sole-funded the requisite reclamation bond, Pilot Gold's interest in Kinsley has increased from 65% to approximately 78%.

Pilot Gold is now funding 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, SE-NW 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 sulfide mineralization.

Vance Spalding, B.Sc., 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 ("NI 43-101") 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 30-100% of the reported lengths. Drill samples were assayed by ALS Chemex (ISO9001:2000) in Reno, Nevada for gold by Fire Assay of a 30 gram (1 assay ton) charge with an AA finish, or if over 5.0 g/t were re-assayed and completed with a gravimetric finish. For these samples, the gravimetric data were utilized in calculating gold intersections. QA/QC 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 multi-element geochemical suite by ICP-MS. Data citing ounces mined from historical production is attributed to www.metalseconomics.com.

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, U.S.A.", effective February 15, 2012 and dated March 26, 2012, prepared by Michael M. Gustin, CPG of Mine Development Associates and Moira Smith, Ph.D., P.Geo. and Kent Samuelson of Pilot Gold Inc., under Pilot Gold's Issuer Profile on SEDAR (www.sedar.com).

ABOUT PILOT GOLD
Pilot Gold is a well-funded gold exploration company led by a proven technical team that continues to discover and define high-quality assets featuring strong grades, meaningful size and mining-friendly addresses. Our three key assets include interests in the TV Tower and Halilaga projects in Turkey, and the Kinsley Mountain project in Nevada, each of which has the ability to become a foundational asset. We also have a pipeline of projects characterized by large land positions and district-wide potential that can meet our growth needs for years to come.

For more information, visit www.pilotgold.com or contact:

Investors:
Patrick Reid, VP, Corporate Affairs
Phone: 604-632-4677 or Toll Free 1-877-632-4677
This email address is being protected from spambots. You need JavaScript enabled to view it.

Media:
Ian Noble, Director, Corporate Communications
Phone: 604-809-8750
This email address is being protected from spambots. You need JavaScript enabled to view it.

All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to Pilot Gold within the meaning of applicable securities laws, including statements that address timing of exploration and development plans at the Company's mineral projects. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold, copper, silver and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources and mineral reserves, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Pilot Gold and there is no assurance they will prove to be correct.

Such forward-looking information, including, but not limited to, statements that address reserve or resource potential, potential quantity and/or grade of minerals, potential size of a mineralized zone, potential expansion of mineralization, the timing and results of future resource estimates, proposed timing of exploration and development plans at the Company's mineral projects, and the estimation of mineral reserves and resources involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of Pilot Gold to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information.

Such factors include, among others, risks related to the interpretation of results at certain of our exploration properties, reliance on technical information provided by our joint venture partners or other third parties as related to any of our exploration properties; changes in project parameters as plans continue to be refined; successfully completing the earn-in on the TV Tower project, including the ability to incur the minimum annual Expenditure Requirements and future issuance of common shares as consideration to complete the earn-in agreement; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; current and proposed exploration and development; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; uses of funds in general including future capital expenditures, exploration expenditures and other expenses for specific operations; the timing and success of exploration activities generally; achievement of identified tangible project milestones at TV Tower; delays in permitting; satisfaction of Turkish requirements relating to the periodic submissions of Environmental Impact Assessments; possible claims against the Company or its joint venture partners; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration as well as those factors discussed in the Company's Annual Information Form for the year ended December 31, 2012, dated March 27, 2013 (the "AIF") in the section entitled "Risk Factors", under Pilot Gold's SEDAR profile at www.sedar.com.

Although Pilot Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Pilot Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. Accordingly, readers should not place undue reliance on forward-looking information. Further details relating to Pilot Gold are also available in the AIF, available under Pilot Gold's SEDAR profile at www.sedar.com.

Agreement adds 20 square kilometres of prospective ground bordering Kayali oxide gold target at TV Tower

VANCOUVER, B.C. - Pilot Gold Inc. (PLG - TSX) ("Pilot Gold" or the "Company") has reached an agreement under which Orta Truva, the joint venture company that holds the TV Tower project, will acquire 100% of the Karaayi project ("Karaayi") from a Turkish subsidiary of Chesser Resources Limited ("Chesser") for total consideration of 1,250,000 Pilot Gold common shares, issued in stages, and US$300,000 (the "Transaction").

The 20-square-kilometre Karaayi property is located immediately southwest of the TV Tower project and is contiguous with the Kayali oxide gold target. Upon closing, Orta Truva will become operator at Karaayi and plans to launch surface exploration work and a drill program on the property in 2013. Orta Truva is owned by Pilot Gold (40%) and Teck Resources Limited's ("Teck") Turkish subsidiary, Teck Madencilik Sanayi Ticaret A.S. (60%).

"Pilot Gold and partner Teck continue to consolidate a dominant land position in the Biga," stated Matt Lennox-King, President and CEO, Pilot Gold. "The acquisition of Karaayi adds 1,956 hectares of highly prospective and strategically important land to the TV Tower project. We are very excited to begin exploration on Karaayi, with a focus on extending the footprint of known mineralized zones from TV Tower's Kayali target."

The Karaayi tenure contains some of the strongest and most extensive gold-in-soil anomalies in the TV Tower district. Drilling at Karaayi by previous operators, including Chesser, has intersected near-surface, oxidized, high-sulphidation style gold mineralization, which is on strike to the west of the known oxidized gold mineralized zone at Kayali. In addition, Chesser's exploration to date has identified the presence of supergene copper and porphyry style copper-gold mineralization on the Karaayi property. There are 96 permitted drill sites in the northern portion of the tenure, allowing for immediate access for drilling.

Pilot Gold is project operator at TV Tower and can increase its interest in the project to 60% through sole funding of exploration over a three-year period. (See press release dated June 21, 2012 for full details of the TV Tower project agreement terms.) Expenditures related to the acquisition of Karaayi will count as Expenditures towards Pilot Gold's obligations under the TV Tower Agreement. With these expenditures, Pilot Gold expects to surpass the second milestone Expenditure requirement toward earning an additional 20% interest in the TV Tower project.

For a map showing Karaayi and TV Tower, please click here:
http://www.pilotgold.com/sites/default/files/karaayi_map.pdf

About TV Tower
The TV Tower project is a joint venture between Pilot Gold (40%) and a Turkish subsidiary of Teck (60%). Located on the Biga Peninsula in northwest Türkiye, 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 Türkiye'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). Upon closing, the Karaayi property will be included in the TV Tower property, and will be owned proportionate to the interest of Pilot Gold and Teck.

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 7,500 metres at Kayali and other high priority targets. At Karaayi, a surface mapping and sampling program has been initiated with first pass drilling expected later in the year.

Moira Smith, Ph.D., P.Geo., Chief Geologist, Pilot Gold, 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 ("NI 43-101") and has reviewed and approved the technical information contained herein. Dr. Smith is responsible for compiling the technical information contained in this press release but she has not verified all the assay data generated by Chesser as previous project operator at Karaayi and has not necessarily had access to individual assay certificates. However, Chesser has given her no reason to doubt their authenticity.

TV Tower and Karaayi are early stage exploration projects; neither 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 yielding a mineral resource.

ABOUT PILOT GOLD
Pilot Gold is a well-funded gold exploration company led by a proven technical team that continues to discover and define high-quality assets featuring strong grades, meaningful size and mining-friendly addresses. Our three key assets include interests in the TV Tower and Halilaga projects in Türkiye, and the Kinsley Mountain project in Nevada, each of which has the ability to become a foundational asset. We also have a pipeline of projects characterized by large land positions and district-wide potential that can meet our growth needs for years to come.

For more information, visit www.pilotgold.com or contact:

Investors:
Patrick Reid, VP, Corporate Affairs
Phone: 604-632-4677 or Toll Free 1-877-632-4677
This email address is being protected from spambots. You need JavaScript enabled to view it.

Media:
Ian Noble, Director, Corporate Communications
Phone: 604-809-8750
This email address is being protected from spambots. You need JavaScript enabled to view it.

Further information is available in the technical report entitled "Updated Technical Report on the TV Tower Exploration Property, Çanakkale, Western Türkiye", effective July 15, 2012 and dated August 3, 2012, prepared by Paul Gribble, B.Sc., C.Eng., FIMMM, UK Manager, Geology of Tetra Tech WEI Inc., under Pilot Gold's Issuer Profile on SEDAR (www.sedar.com).

All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to Pilot Gold within the meaning of applicable securities laws, including statements that address timing of exploration and development plans at the Company's mineral projects. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold, copper, silver and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources and mineral reserves, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Pilot Gold and there is no assurance they will prove to be correct.

Such forward-looking information, including, but not limited to, statements that address reserve or resource potential, potential quantity and/or grade of minerals, potential size of a mineralized zone, potential expansion of mineralization, the timing and results of future resource estimates, proposed timing of exploration and development plans at the Company's mineral projects, successful closing of the transaction to acquire the Karaayi property, and the estimation of mineral reserves and resources involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of Pilot Gold to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information.

Such factors include, among others, risks related to the interpretation of results at certain of our exploration properties, reliance on technical information provided by our joint venture partners or other third parties as related to any of our exploration properties; changes in project parameters as plans continue to be refined; successfully completing the earn-in on the TV Tower project, including the ability to incur the minimum annual Expenditure Requirements and future issuance of common shares as consideration to complete the earn-in agreement; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; current and proposed exploration and development; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; uses of funds in general including future capital expenditures, exploration expenditures and other expenses for specific operations; the timing and success of exploration activities generally; achievement of identified tangible project milestones at TV Tower; delays in permitting; satisfaction of Turkish requirements relating to the periodic submissions of Environmental Impact Assessments; possible claims against the Company or its joint venture partners; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration as well as those factors discussed in the Annual Information Form for the year ended December 31, 2012, dated March 27, 2013 (the "AIF") in the section entitled "Risk Factors", under Pilot Gold's SEDAR profile at www.sedar.com.

Although Pilot Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Pilot Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. Accordingly, readers should not place undue reliance on forward-looking information. Further details relating to Pilot Gold are also available in our AIF, available under Pilot Gold's SEDAR profile at www.sedar.com.

Drilling extends silver mineralization 100 metres north; new zone of oxide gold identified

VANCOUVER, B.C. – Pilot Gold Inc. (PLG - TSX) (“Pilot Gold” or the “Company”) is pleased to report that drilling focused on the near-surface zone of silver-only mineralization at the KCD target, TV Tower continues to return strong silver results, including 90.2 g/t silver (Ag) over 91.5 metres in step-out drilling to the north.

With these results, the silver zone has expanded to cover an area measuring approximately 600 by 600 metres and remains open to the north. Recent silver highlights include:

Step-out highlights:

• 90.2 g/t Ag over 91.5 metres in KCD-151R*, including 176 g/t Ag over 34.5 metres 
• 43.6 g/t Ag over 61.5 metres in KCD-149R

Infill highlights:

• 51.4 g/t Ag over 77.5 metres in KCD-148, including 94.8 g/t Ag over 29.7 metres
• 37.2 g/t Ag over 95.2 metres in KCD-157, including 111 g/t Ag over 11.7 metres

In addition to strong step-out and infill results in the silver zone, drill hole KCD-164 returned high grade gold, silver and copper in the northwestern portion of the KCD gold zone. Mineralization resembles that observed in the original high-grade discovery breccia zone. Highlights include:

• 6.99 g/t Au, 150 g/t Ag, 10.1% Cu over 5.0 metres in KCD-164, including
  • 14.3 g/t Au, 494 g/t Ag, 35.1% Cu over 1.1 metres

“Pilot Gold’s 2013 program at KCD has been very successful to date, with the drilled footprint of high-grade gold and silver mineralization continuing to grow with each step-out and strong infill holes providing increased confidence in the target’s potential,” said Matt Lennox-King, President and CEO, Pilot Gold.

Pilot Gold is advancing KCD towards resource definition while continuing to develop the district-scale potential across TV Tower. Drilling is planned for 2013 at other high-priority targets including Kayali and Karaayi.

New zone of gold mineralization:
Several of these recent drill holes also reveal near-surface, oxidized, gold-bearing intercepts from three drill sites spaced approximately 100 metres apart, overlying the silver zone. These oxide intercepts are related to a silicified tuff horizon exposed for over 300 metres along a WNW-ESE trending ridge at the top of KCD (see map link). Previous surface rock sampling in this area returned up to 1.1 g/t Au, which is also marked by elevated gold in soil immediately down-slope to the south of the ridge exposures. Based on the distribution of intercepts, the new oxide gold zone dips gently northward and is open to the northwest. Mapping and sampling of this gold zone is in progress.

Oxide gold intercepts include:

• 0.56 g/t Au over 18.0 metres in KCD-165R
• 0.57 g/t Au over 9.0 metres in KCD-156R
• 0.87 g/t Au over 7.0 metres in KCD-155
• 0.71 g/t Au over 6.0 metres in KCD-158

All true widths are 50-100% of reported widths unless otherwise stated. All intervals of no sampling have been assigned zero grade for the purposes of compositing.

For a comprehensive table of results related to silver mineralization, please click:
http://www.pilotgold.com/sites/default/files/KCD_PR_Ag_Table_final.pdf

For a comprehensive table of results related to gold mineralization, please click:
http://www.pilotgold.com/sites/default/files/KCD_PR_Au_Table_final.pdf

For a map highlighting recent drilling, please click:
http://www.pilotgold.com/sites/default/files/PR_08_28_2013_final.pdf

The 2013 program at KCD is focused on infill and step-out drilling of the silver zone, and testing the gold zone down-dip to the north and along strike to the west-northwest. The drill results from KCD form part of an aggressive exploration program consisting of approximately 15,000 metres of diamond core and RC drilling, geologic modeling and ongoing surface work. Sixty-seven holes have been completed at KCD this year, with assays pending for nine holes. As the KCD drill program comes to a close, drilling will focus on the nearby Kayali bulk tonnage, oxide gold system and the adjacent Karaayi target. Approximately 2,835 metres have been completed in 11 drill holes at Kayali in 2013, with assays pending for all holes. A surface program is underway at the recently acquired Karaayi target, with drilling planned before year-end.

About TV Tower:
TV Tower is a joint venture between Pilot Gold (40%) and Teck Madencilik Sanayi Ticaret A.S. (60%), a Turkish subsidiary of Teck Resources Limited (“Teck”). Pilot Gold is project operator at TV Tower and can increase its interest in the project to 60%, through sole funding of exploration over a three-year period. (See press release dated September 12, 2012 for full details of the deal terms.)

Located on the Biga Peninsula of northwest Turkey, the TV Tower project 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).

First pass drilling in 2010 resulted in new discoveries at the KCD and Kayali epithermal gold systems. Ongoing exploration by Pilot Gold continues to uncover robust new targets, including the bonanza-grade Columbaz low sulphidation epithermal vein system that returned 39 g/t gold and 290 g/t silver in 2012 rock chip sampling.

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 (“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 yielding a mineral resource.

Moira Smith, Ph.D., P.Geo., 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 information contained in the release is accurate. Drill composites were calculated using cut-offs of 10, 50 and 100 g/t Ag. Drill intersections are reported as drilled thicknesses. True widths of the mineralized intervals are interpreted to be between 50-100% of the reported lengths. Drill samples were assayed by AcmeLabs in Ankara, Turkey and Vancouver, B.C. for gold by Fire Assay of a 30 gram (1 assay ton) charge with ICP-ES or AAS finish, or if over 5.0 g/t were re-assayed and completed with a gravimetric finish. Metallic screen techniques were employed to assay a 12-metre interval in KCD-50. Approximately 500 grams of coarse reject material are pulverized and screened. Two splits of the fine fraction are assayed, as well as all material that does not pass through the screen (the coarse fraction). The final gold assay reported is a weighted average of the coarse and fine fractions. Ag and Cu were determined by aqua regia ICP-MS, with overlimits (>100 ppm Ag or >10,000 ppm Cu) completed by fire assay with gravimetric finish (Ag) or 4-acid digestion with ICP-ES (Cu). QA/QC 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.

*R denotes reverse circulation drill hole

About Pilot Gold:
Pilot Gold is a well-funded gold exploration company led by a proven technical team that continues to discover and define high-quality projects featuring strong grades, meaningful size and mining-friendly addresses. Our three key assets include interests in the TV Tower and Halilaga projects in Turkey, and the Kinsley Mountain project in Nevada, each of which has the ability to become a foundational asset. We also have a pipeline of projects characterized by large land positions and district-wide potential that can meet our growth needs for years to come.

For more information, visit www.pilotgold.com or contact:

Investors:
Patrick Reid, VP, Corporate Affairs
Phone: 604-632-4677 or Toll Free 1-877-632-4677
This email address is being protected from spambots. You need JavaScript enabled to view it.

Media:
Ian Noble, Director, Corporate Communications
Phone: 604-809-8750
This email address is being protected from spambots. You need JavaScript enabled to view it.

Further information is available in the technical report entitled "Updated Technical Report on the TV Tower Exploration Property, Çanakkale, Western Turkey”, effective July 15, 2012 and dated August 3, 2012, prepared by Paul Gribble, B.Sc., C.Eng., FIMMM, UK Manager, Geology of Tetra Tech WEI Inc., under Pilot Gold’s Issuer Profile on SEDAR (www.sedar.com).

All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to Pilot Gold within the meaning of applicable securities laws, including statements that address timing of exploration and development plans at the Company’s mineral projects. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold, copper, silver and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources and mineral reserves, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Pilot Gold and there is no assurance they will prove to be correct.

Such forward-looking information, including, but not limited to, statements that address reserve or resource potential, potential quantity and/or grade of minerals, potential size of a mineralized zone, potential expansion of mineralization, the timing and results of future resource estimates, proposed timing of exploration and development plans at the Company’s mineral projects, and the estimation of mineral reserves and resources involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of Pilot Gold to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information.

Such factors include, among others, risks related to the interpretation of results at certain of our exploration properties, reliance on technical information provided by our joint venture partners or other third parties as related to any of our exploration properties; changes in project parameters as plans continue to be refined; successfully completing the earn-in on the TV Tower project, including the ability to incur the minimum annual Expenditure Requirements and future issuance of common shares as consideration to complete the earn-in agreement; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; current and proposed exploration and development; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; uses of funds in general including future capital expenditures, exploration expenditures and other expenses for specific operations; the timing and success of exploration activities generally; achievement of identified tangible project milestones at TV Tower; delays in permitting; satisfaction of Turkish requirements relating to the periodic submissions of Environmental Impact Assessments; possible claims against the Company or its joint venture partners; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration as well as those factors discussed in the Annual Information Form for the year ended December 31, 2012, dated March 27, 2013 (the “AIF”) in the section entitled "Risk Factors", under Pilot Gold’s SEDAR profile at www.sedar.com.

Although Pilot Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Pilot Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. Accordingly, readers should not place undue reliance on forward-looking information. Further details relating to Pilot Gold are also available in our AIF, available under Pilot Gold’s SEDAR profile at www.sedar.com.

Sampling and mapping outline project’s largest gold-in-soil anomaly

VANCOUVER, B.C. – Pilot Gold Inc. (PLG - TSX) (“Pilot Gold” or the “Company”) reports that initial infill mapping, soil sampling, rock sampling and compiled drill data indicate the presence of a potential shallow, bulk-tonnage oxide gold-mineralized system at least four kilometres long between the Kayali and Karaayi targets at TV Tower.

“We are very excited about the results of the surface and compilation work to date at Kayali and Karaayi, collectively known as K2,” said Matt Lennox-King, President and CEO, Pilot Gold. “The K2 trend contains some of the strongest and most extensive gold-in-soil anomalies in the Biga region, builds upon the exploration success at our KCD target to the north, and further supports the district potential of TV Tower.”

The link between Karaayi and Kayali is also based on systematic mapping of primary lithology, alteration, structure and the distribution of silica ribs. The preferred volcaniclastic host to mineralization at both targets has been mapped on surface and is strongly altered with a large number of silica ribs.

The Kayali zone, in the southern part of TV Tower, was first drill tested in 2011, returning 0.87 g/t oxide gold over 114.5 metres in discovery hole KYD-1 (see press release dated May 10, 2011). Drilling at the recently secured Karaayi zone by previous operators intersected two clusters of near-surface, oxidized gold mineralization two and three kilometres to the west of Kayali.

Historic drill results from Karaayi1 include:

• 0.52 g/t gold (Au) over 115.5 metres in KC-06

•  0.62 g/t Au over 87.1 metres in GD-05

•   0.45 g/t Au over 78.0 metres in GRC-12

•   0.60 g/t Au over 49.0 metres in KAD-06, including
  1.49 g/t Au over 10.5 metres, bottoming in mineralization

• 0.62 g/t Au over 58.5 metres in KC-07

Since securing the full K2 target area, Pilot Gold has accelerated surface sampling and mapping to better define the corridor of oxide gold-mineralized rocks in the southern portion of TV Tower.  Pilot Gold has drilled 3,585 metres in 17 holes at the Kayali zone in 2013, with assays for all holes pending. A further 1,300 metres is planned for the Karaayi zone this fall.

Click on the thumbnails below to view maps of the K2 area and TV Tower property.

Geology: K2
The model for gold mineralization at K2 is an oxidized, high-sulphidation epithermal gold system. Premier examples of this kind of system include Yanacocha, Pierina and Alto Chicama in Peru along with the Agi Dagi and Kirazli deposits neighboring TV Tower and currently under development by Alamos Gold2. These systems are distinguished by low operating costs, low capital intensity and straightforward processing.

K2’s gold oxide zone is primarily hosted in one or more thick, gently north-dipping sheets of massive and vuggy quartz-altered volcaniclastic rock, cut by west-northwest striking, steeply south-dipping, hematite-cemented breccia zones and fractures hosting elevated gold grades. Current and future drilling at K2 primarily targets these ribs and, therefore, geological mapping and sampling prior to drilling are a critical first step toward defining additional drill targets.

About TV Tower:
TV Tower is a joint venture between Pilot Gold (40%) and Teck Madencilik Sanayi Ticaret A.S. (60%), a Turkish subsidiary of Teck Resources Limited (“Teck”). Pilot Gold is project operator at TV Tower and can increase its interest in the project to 60%, through sole funding of exploration over a three-year period.

Located on the Biga Peninsula of northwest Turkey, the TV Tower project encompasses 91 square kilometres containing seven proven 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).

Moira Smith, Ph.D., P.Geo., Chief Geologist, Pilot Gold, is the Company's designated Qualified Person for this news release within the meaning of NI 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) and has reviewed and validated that the information contained in the release is accurate.1The legacy data presented herein was developed by previous operators of the Karaayi tenure. Pilot Gold is providing this legacy data for informational purposes only, and gives no assurance as to its reliability and relevance to the Company’s current results and proposed exploration program at Karaayi. Pilot Gold has not completed any quality assurance program or applied quality control measures to the legacy data, nor has a Qualified Person done sufficient work to verify the source of the legacy data. Accordingly, the legacy data should not be relied upon. While Pilot Gold plans to verify some or all of the legacy data, the anticipated timing and results of that data verification cannot be ascertained at this time. Confirmation work may produce results that differ substantially. Drill composites relating to drilling undertaken by Pilot Gold were calculated using cut-offs of 10, 50 and 100 g/t Ag. Drill intersections are reported as drilled thicknesses. True widths of the mineralized intervals are interpreted to be between 50-100% of the reported lengths. Drill samples were assayed by AcmeLabs in Ankara, Turkey and Vancouver, B.C.

TV Tower 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 yielding a mineral resource.

2There are no assurances that the geological similarities to Alamos Gold’s Agi Dagi or Kirazli projects will result in the establishment of any resource estimates at TV Tower, or that the TV Tower project can be advanced in a similar timeframe or with similar results.

About Pilot Gold:
Pilot Gold is a well-funded gold exploration company led by a proven technical team that continues to discover and define high-quality projects featuring strong grades, meaningful size and mining-friendly addresses. Our three key assets include interests in the TV Tower and Halilaga projects in Turkey, and the Kinsley Mountain project in Nevada, each of which has the ability to become a foundational asset. We also have a pipeline of projects characterized by large land positions and district-wide potential that can meet our growth needs for years to come.

For more information, visit www.pilotgold.com or contact:

Investors:
Patrick Reid, VP Corporate Affairs
Phone: 604-632-4677 or Toll Free 1-877-632-4677
This email address is being protected from spambots. You need JavaScript enabled to view it.

Media:
Ian Noble, Director, Corporate Communications
Phone: 604-809-8750
This email address is being protected from spambots. You need JavaScript enabled to view it.

Further information is available in the technical report entitled "Updated Technical Report on the TV Tower Exploration Property, Çanakkale, Western Turkey”, effective July 15, 2012 and dated August 3, 2012, prepared by Paul Gribble, B.Sc., C.Eng., FIMMM, UK Manager, Geology of Tetra Tech WEI Inc., under Pilot Gold’s Issuer Profile on SEDAR (www.sedar.com).

All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to Pilot Gold within the meaning of applicable securities laws, including statements that address timing of exploration and development plans at the Company’s mineral projects. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold, copper, silver and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources and mineral reserves, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Pilot Gold and there is no assurance they will prove to be correct.

Such forward-looking information, including, but not limited to, statements that address reserve or resource potential, potential quantity and/or grade of minerals, potential size of a mineralized zone, potential expansion of mineralization, the timing and results of future resource estimates, proposed timing of exploration and development plans at the Company’s mineral projects, and the estimation of mineral reserves and resources involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of Pilot Gold to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information.

Such factors include, among others, risks related to the interpretation of results at certain of our exploration properties, reliance on technical information provided by our joint venture partners or other third parties as related to any of our exploration properties; changes in project parameters as plans continue to be refined; successfully completing the earn-in on the TV Tower project, including the ability to incur the minimum annual Expenditure Requirements; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; current and proposed exploration and development; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; uses of funds in general including future capital expenditures, exploration expenditures and other expenses for specific operations; the timing and success of exploration activities generally; achievement of identified tangible project milestones at TV Tower; delays in permitting; satisfaction of Turkish requirements relating to the periodic submissions of Environmental Impact Assessments; possible claims against the Company or its joint venture partners; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration as well as those factors discussed in the Annual Information Form for the year ended December 31, 2012, dated March 27, 2013 (the “AIF”) in the section entitled "Risk Factors", under Pilot Gold’s SEDAR profile at www.sedar.com.

Although Pilot Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Pilot Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. Accordingly, readers should not place undue reliance on forward-looking information. Further details relating to Pilot Gold are also available in our AIF, available under Pilot Gold’s SEDAR profile at www.sedar.com.

Karaayi agreement, strong initial drill results at Kayali, approved plan of operations at Kinsley highlight Q3 advancements 

VANCOUVER, B.C. – Pilot Gold Inc. (PLG - TSX) (“Pilot Gold” or the “Company”) is pleased to report its financial results for the nine months ended September 30, 2013, and update progress at TV Tower and Kinsley.  

Q3 2013 HIGHLIGHTS AND SIGNIFICANT EVENTS SUBSEQUENT TO QUARTER-END:

• Cash and short-term investments at September 30, 2013, totalled $24 million.

• Acquired beneficial interest in the Karaayi property, consolidating ownership of a strategic exploration target at TV Tower and creating the dominant position in Turkey’s Biga Peninsula. The Karaayi tenure contains some of the strongest and most extensive gold-in-soil anomalies in the TV Tower District.

• Reported mapping, soil sampling, rock sampling and compiled drill data that indicate the presence of a potential shallow, bulk-tonnage oxide gold-mineralized system at least four kilometres long between the Kayali and Karaayi targets at TV Tower.

• Demonstrated strong continuity of oxide gold mineralization over a strike length of 450 metres from the Company’s first drill test at Kayali. Significant drill results from the Kayali target include1:

           o 15.9 g/t gold (Au) over 3 metres, within an interval grading 1.35 g/t Au over 45 metres,  in KYD-46

• Continued to demonstrate encouraging drill results at TV Tower’s KCD target while expanding that target’s silver and gold mineralization. Significant drill results from KCD include2:

           o 6.99 g/t Au, 150 g/t silver (Ag), 10.1% copper (Cu) over 5.0 metres in KCD-164, including 14.3 g/t Au, 494 g/t Ag, 35.1% Cu over 1.1 metres

• Completed the second milestone expenditure requirement toward earn-in to an additional 20% interest at TV Tower.
• Increased the Company’s interest in Kinsley to 78%, and received approval for a Plan of Operations  allowing up to 70 acres of disturbance for exploration and development drilling on the core group of claims.  
• Sold several portfolio property interests, reducing the cost of maintaining the assets while retaining an interest in the properties through net smelter return royalty interests or equity in the purchasers.

1As previously reported in press release dated November 1, 2013
2As previously reported in press release dated September 10, 2013

“We are very pleased with the progress achieved in Turkey and Nevada through drilling and other exploration work, permitting, land acquisitions and deal flow during Q3,” stated Matt Lennox-King, President and CEO, Pilot Gold.

“With our strong cash balance, the Karaayi transaction, the emergence of a potential bulk-tonnage oxide gold-mineralized system at TV Tower and our increased interest in Kinsley, we are uniquely positioned to fund programs through 2014 at two premier exploration properties in exceptional mining jurisdictions.”

WORK PROGRAM UPDATES

Pilot Gold continued to make progress on its key exploration projects in the third quarter of 2013.

TV Tower:

On September 5, 2013 we announced a transaction to acquire the 1,956-hectare Karaayi property, consolidating ownership of a strategic exploration target for TV Tower and creating the dominant land position in the greater TV Tower District. The Karaayi target is contiguous and on strike with the Kayali target and has approximately 100 permitted drill sites. Orta Truva Madencilik, the Company’s joint venture partner at TV Tower, acquired a beneficial interest in Karaayi in exchange for 1,250,000 Pilot Gold common shares and $300,000 in cash.  Consideration for the acquisition is eligible toward earn-in to the additional 20% interest in TV Tower.

The Company has completed 16,781 metres of drilling at KCD, 3,586 metres of drilling at Kayali and 1,329 metres of drilling at Karaayi. Initial infill mapping and soil and rock sampling between Kayali and Karaayi demonstrate the presence of a contiguous oxide gold-mineralized system stretching four kilometres, linking the two targets and providing a significant extension on the Kayali mineralization. An initial resource of the KCD target is expected before year end, and a staged metallurgical testing program is underway. We received drill permits for the Sarp and Columbaz targets in October 2013 and have multiple permits pending.

During the nine months ended September 30, 2013, Pilot Gold incurred approximately $7.1 million in exploration expenditures at TV Tower (year ended December 31, 2012: $4.77 million). The budget for the 2013 program is $7.9 million. Including consideration paid for Karaayi, and net of a VAT receivable, the Company has $7.1 million remaining to complete the final earn-in expenditure requirement.

Pilot Gold currently holds a 40% interest in the project, and became project operator in 2012 with an option to increase the Company’s interest in TV Tower to 60%.  The Company completed the second year minimum committed expenditure amount during the quarter and has embarked on the final expenditure to complete the earn-in.  A subsidiary of Teck Resources Limited is the Company’s 60% joint venture partner at TV Tower.

Kinsley:

Kinsley is a Carlin-style, sediment hosted project and past producer located along the Long Canyon Trend in North Eastern Nevada. Pilot Gold increased its interest in Kinsley Mountain to 78% during the quarter as Nevada Sunrise Gold Corporation elected not to participate in the 2013 program and budget. The revised budget at Kinsley is equal to what had previously been Pilot Gold’s share ($3.39 million).  The Company expects that the planned 20,000-metre RC and core drill program will conclude in November 2013. More than 13,700 metres have been completed to date under the 2013 program.

The Company received an Approved Record of Decision from the United States Interior Department’s Bureau of Land Management for a Plan of Operations in August 2013.  Upon receipt, the Company expanded exploration and expects to drill multiple targets beyond the previously disturbed areas on this past-producing property.

Through September 30, 2013 the Company had capitalized approximately $2.04 million in expenditures at Kinsley (year ended December 31, 2012: $3.67 million). 

TV Tower and Kinsley are both early stage exploration projects; neither 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 yielding a mineral resource.

SELECTED FINANCIAL DATA

The following selected financial data is derived from the Company’s unaudited condensed interim consolidated financial statements for the nine month period ended September 30, 2013, as prepared in accordance with International Financial Reporting Standards.

Total assets decreased to $72.01 million as at September 30, 2013 (December 31, 2012: $72.39 million), and comprise primarily expenditures capitalized to the earn-in to TV Tower of $18.13 million (December 31, 2012: $7.24 million), the value of the Company’s investment in its associates of $15.03 million (December 31, 2012: $11.93 million) and cash and short-term investments of $23.98 million (December 31, 2012: $37.38 million).  Notwithstanding an ongoing exploration program whereby the majority of expenditures are capitalized, the decrease reflects the write down of deferred exploration expenditures ($1.37 million) relating to the New Boston and Buckskin North properties and cash outflows related to corporate activities through the nine months ended September 30, 2013. The increased values of the earn-in to TV Tower and the Company’s investment in its associates reflects the inclusion of the value of common shares ($5.99 million) issued pursuant to the TV Tower Agreement and as partial consideration for the acquisition of Karaayi.

For the three and nine months ended September 30, 2013, Pilot Gold reported a net loss of $1.22 million and $7.57 million respectively, compared to net losses of $1.81 million and $4.66 million for the same periods in the prior year.  The losses per share for the three and nine month periods ended September 30, 2013 were $0.01 and $0.09 respectively (three and nine months ended September 30, 2012: $0.03 and $0.08 per share).  The most significant contributors to the loss for the nine months ended September 30, 2013 were the impairment and write down of deferred exploration expenditures ($1.37 million) at the New Boston and Buckskin North properties, the recognition of non-cash stock based compensation ($1.91 million) and the cost of wages and benefits ($1.31 million). These costs were offset by management fees received as part of the TV Tower Agreement ($0.62 million) and interest earned on the Company’s cash deposits of $0.33 million. The most significant contributors to the comparative period loss were stock based compensation expenses and wages, offset by changes in the fair value of the Company’s financial instruments. 

Other comprehensive gains and losses for the three and nine months ended September 30, 2013 were a $0.50 million gain and $1.85 million loss, respectively (comprehensive gains of $0.49 million and losses of $0.17 million for the same periods in the prior year). The loss for the nine month period ended September 30, 2013 includes a $1.83 million loss (nine months ended September 30, 2012: $0.81 million gain) from the impact of exchange gains and losses arising from exchange differences on the translation of Pilot Gold’s foreign operations with a non-United States dollar functional currency, net of losses relating to fair value changes in our financial assets and the impact of reclassification of the value of previously impaired equity. The impact from exchange differences will vary from period to period depending on the rate of exchange. In the period between January 1, 2013 and September 30, 2013, there was a 3.3% change in the exchange rate between the United States and Canadian dollars.

Liabilities at September 30, 2013 and at December 31, 2012 reflect primarily accounts payable and accruals recorded at period end arising from ongoing activities.

This press release should be read in conjunction with Pilot Gold’s unaudited condensed interim consolidated financial statements and Management’s Discussion and Analysis for the nine months ended September 30, 2013. These documents can be found on the Company’s website (www.pilotgold.com) or on SEDAR at www.sedar.com. All amounts are presented in United States dollars unless otherwise stated.

ABOUT PILOT GOLD

Pilot Gold is a well-funded gold exploration company led by a proven technical team that continues to discover and define high-quality projects featuring strong grades, meaningful size and mining-friendly addresses. Our three key assets include interests in the TV Tower and Halilaga projects in Turkey, and the Kinsley project in Nevada, each of which has the ability to become a foundational asset. We also have a pipeline of projects characterized by large land positions and district-wide potential that can meet our growth needs for years to come.

For more information, visit www.pilotgold.com or contact:

Investors:
Patrick Reid, VP Corporate Affairs
Phone: 604-632-4677 or Toll Free 1-877-632-4677
This email address is being protected from spambots. You need JavaScript enabled to view it.

Media:
Ian Noble, Director, Corporate Communications
Phone: 604-809-8750This email address is being protected from spambots. You need JavaScript enabled to view it.

For more information on the TV Tower, Halilaga or Kinsley Mountain properties refer to the following technical reports filed on the Company’s website at www.pilotgold.com and under Pilot Gold’s SEDAR profile at : “Updated Technical Report on the TV Tower Exploration Property, Canakkale, Western Turkey”, effective July 15, 2012 and dated August 3, 2012 prepared by Paul Gribble, C.Eng., FIMMM; “Preliminary Economic Assessment Technical Report for the Halilaga Project, Turkey” effective August 27, 2012 and dated October 10, 2012 prepared by Gordon Doerksen, P.Eng., James Gray, P.Geo., Garth Kirkham, P.Geo., Dino Pilotto, P.Eng., Maritz Rykaart, P.Eng, and Kevin Scott, P.Eng.; and “Technical Report on the Kinsley Project, Elko County, Nevada, U.S.A.” effective February 15, 2012 and dated March 26, 2012 prepared by Michael Gustin, CPG and Moira Smith, Ph.D., P.Geo.

All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to Pilot Gold within the meaning of applicable securities laws, including statements that address timing of exploration and development plans at the Company’s mineral projects. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold, copper, silver and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources and mineral reserves, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Pilot Gold and there is no assurance they will prove to be correct.

Such forward-looking information, including, but not limited to, statements that address reserve potential, potential quantity and/or grade of minerals, potential size of a mineralized zone, potential expansion of mineralization, the timing and results of future resource estimates, proposed timing of exploration and development plans at the Company’s mineral projects, and the estimation of mineral reserves and resources involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of Pilot Gold to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information.

Such factors include, among others, risks related to the interpretation of results at certain of our exploration properties, reliance on technical information provided by our joint venture partners or other third parties as related to any of our exploration properties; changes in project parameters as plans continue to be refined; successfully completing the earn-in on the TV Tower project; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; current and proposed exploration and development; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; uses of funds in general including future capital expenditures, exploration expenditures and other expenses for specific operations; the timing and success of exploration activities generally; delays in permitting; satisfaction of Turkish requirements relating to the periodic submissions of Environmental Impact Assessments; possible claims against the Company or its joint venture partners; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration as well as those factors discussed in the Annual Information Form of the Company dated March 27, 2013 (the “AIF”) in the section entitled "Risk Factors", under Pilot Gold’s SEDAR profile at .

Although Pilot Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Pilot Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. Accordingly, readers should not place undue reliance on forward-looking information. Further details relating to Pilot Gold are also available in the AIF, available under Pilot Gold’s SEDAR profile at

Results confirm and expand high grade gold mineralization at the Western Flank Target

VANCOUVER, B.C. – Pilot Gold Inc. (PLG - TSX) (“Pilot Gold” or the “Company”) is pleased to announce that the 2013 program returned the highest-grade intercept in more than 1,300 holes drilled to date at the Kinsley Mountain project – 8.53 g/t gold (Au) over 36.6 metres, including 29.43 g/t gold over 7.6 metres in HQ core drill hole PK091CA. 

Assay results from the Western Flank target, located 550 metres northwest of the past-producing pits at Kinsley, also expand the area of high-grade gold mineralization and demonstrate the potential for Kinsley to host significant high-grade gold mineralization. Drill hole highlights include:

•      8.53 g/t Au over 36.6 metres in PK091CA, including

▪      29.43 g/t Au over 7.6 metres

•      15.6 g/t Au over 3.0 metres in PK083C

•      2.21 g/t Au over 10.7 metres in PK073

•      1.65 g/t Au over 24.4 metres in PK074

•      2.51 g/t Au over 16.8 meters in PK102

“Results released today mark a sea change for Kinsley, providing ‘proof of concept’ that our technical team’s model from Long Canyon is valid and applicable at our flagship Nevada property,” stated Dr. Moira Smith, Chief Geologist, Pilot Gold. “Prior operators believed Kinsley mineralization was restricted to past-producing, northwest trending structural corridors and hosted primarily in the Candland Shale. However, today’s breakthrough drill results confirm that Kinsley’s gold mineralization is also controlled by north and north-northeast trending structures and hosted within a limestone and shale sequence beneath the Candland Shale. We believe these results support district-scale potential at Kinsley.”

Pilot Gold has drilled approximately 14,200 metres in 58 holes to date for its 2013 Kinsley program, with assays pending for 26 holes.

For a table of 2013 Kinsley Mountain drill results to date, including non-reportable intercepts, please click here: http://www.pilotgold.com/sites/default/files/KinsleyDrillResults1325.pdf

For a drill map outlining the area covered by the Plan of Operations, please click here: http://www.pilotgold.com/sites/default/files/KinsleyDrillMap1325.pdf

For a photograph of PK091CA please here:
http://www.pilotgold.com/sites/default/files/CorePhoto.pdf

Since August 30, 2013, when the U.S. Bureau of Land Management ("BLM") approved a Plan of Operations permitting exploration activities on the core group of claims at Kinsley Mountain, Pilot Gold has been drilling and constructing road access in three key areas, including the Western Flank, Candland Canyon and the Ken Jasperoid target. 

Drilling in 2013 at the Western Flank has identified significant oxide and sulfide gold mineralization along a corridor stretching approximately 500 metres in a north-south direction. Mineralization occurs in gently west-dipping, tabular zones up to 150 metres wide and hosted within the Cambrian Candland Shale, the main gold host within the original Kinsley Mine.

Importantly, recent drilling has shown that significant gold also occurs within a lower zone of silty limestone below the Candland Shale. This host horizon was neither identified nor tested by previous operators. Recent core drilling suggests that the tabular zones of mineralized, favourable host rock are cut by one or more high-angle structures causing collapse breccia zones where the mineralization becomes thicker and higher-grade. Pilot Gold drill hole PK091CA contains high-grade collapse breccia zones similar to those seen at Newmont Mining’s Long Canyon project and other world class Carlin deposits. 

From the south edge of the Western Flank target, mineralization is open and becomes shallower to the south over a distance of 500 meters to the Wrong Spot target, a 350-metre long NNE-trending exposure of surface jasperoids returning 1-3 g/t Au in grab samples. It has not yet been drill tested. 

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 metre-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.

The existence of similar features as the Long Canyon deposit does not mean that a mineral resource will be found to exist in the Western Flank or, if found to exist, that it will be of similar grade or quantity that is found at Long Canyon.

ABOUT KINSLEY MOUNTAIN

Kinsley Mountain hosts near-surface mineralization similar to other Carlin-style, sediment-hosted gold systems along a 2.2 kilometre, SE-NW 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 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"). There are no assurances that the geological similarities to the Long Canyon project or other project along the Long Canyon Trend, will result in the establishment of any resource estimates at Kinsley, or that the Kinsley project can be advanced in a similar timeframe. 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.

Intor Resources Corporation ("Intor"), 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 is sole-funding a $3.4-million program in 2013.

Vance Spalding, B.Sc., CPG, Pilot Gold Vice President, Exploration, 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 information contained in the release is accurate. Drill composites were calculated using a cut-off of 0.20 g/t. Drill intersections are reported as drilled thicknesses. True widths of the mineralized intervals are interpreted to be between 30-100% of the reported lengths. Drill samples were assayed by ALS Chemex (ISO9001:2000) in Reno, Nevada for gold by Fire Assay of a 30 gram (1 assay ton) charge with an AA finish, or if over 5.0 g/t were re-assayed and completed with a gravimetric finish. For these samples, the gravimetric data were utilized in calculating gold intersections. For any samples assaying over 0.200 ppm an addition cyanide leach analysis is done where the sample is treated with a 0.25% NACN solution and rolled for an hour. An aliquot of the final leach solution is then centrifuged and analyzed by AAS. QA/QC for all drill samples consists of 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 multi-element geochemical suite by ICP-MS.

Further information is available in the technical report entitled "Technical Report on the Kinsley Project, Elko County, Nevada, U.S.A.", effective February 15, 2012 and dated March 26, 2012, prepared by Michael M. Gustin, CPG of Mine Development Associates and Moira Smith, Ph.D., P.Geo. and Kent Samuelson of Pilot Gold Inc., under Pilot Gold's Issuer Profile on SEDAR (www.sedar.com).

ABOUT PILOT GOLD

Pilot Gold is a well-funded gold exploration company led by a proven technical team that continues to discover and define high-quality projects featuring strong grades, meaningful size and mining-friendly addresses. Our three key assets include interests in the TV Tower and Halilaga projects in Turkey, and the Kinsley project in Nevada, each of which has the ability to become a foundational asset. We also have a pipeline of projects characterized by large land positions and district-wide potential that can meet our growth needs for years to come.

For more information, visit www.pilotgold.com or contact:

Investors:
Patrick Reid, VP Corporate Affairs
Phone: 604-632-4677 or Toll Free 1-877-632-4677
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Media:
Ian Noble, Director, Corporate Communications
Phone: 604-809-8750
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For more information on the TV Tower, Halilaga or Kinsley Mountain properties refer to the following technical reports filed on the Company’s website at www.pilotgold.com and under Pilot Gold’s SEDAR profile at www.sedar.com: “Updated Technical Report on the TV Tower Exploration Property, Canakkale, Western Turkey”, effective July 15, 2012 and dated August 3, 2012 prepared by Paul Gribble, C.Eng., FIMMM; “Preliminary Economic Assessment Technical Report for the Halilaga Project, Turkey” effective August 27, 2012 and dated October 10, 2012 prepared by Gordon Doerksen, P.Eng., James Gray, P.Geo., Garth Kirkham, P.Geo., Dino Pilotto, P.Eng., Maritz Rykaart, P.Eng, and Kevin Scott, P.Eng.; and “Technical Report on the Kinsley Project, Elko County, Nevada, U.S.A.” effective February 15, 2012 and dated March 26, 2012 prepared by Michael Gustin, CPG and Moira Smith, Ph.D., P.Geo.

Reference to certain legacy data relating to the Kinsley Project developed by previous operators is provided for informational purposes only. Pilot Gold gives no assurance as to its reliability and relevance to the Company’s current results and proposed exploration program at Kinsley. Pilot Gold has not completed any quality assurance program or applied quality control measures to the legacy data, nor has a Qualified Person done sufficient work to verify the source of the legacy data.  Accordingly, the legacy data should not be relied upon. While Pilot Gold plans to verify some or all of the legacy data, the anticipated timing and results of that data verification cannot be ascertained at this time. Confirmation work may produce results that differ substantially.

All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to Pilot Gold within the meaning of applicable securities laws, including statements that address timing of exploration and development plans at the Company’s mineral projects. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold, copper, silver and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources and mineral reserves, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Pilot Gold and there is no assurance they will prove to be correct.

Such forward-looking information, including, but not limited to, statements that address reserve potential, potential quantity and/or grade of minerals, potential size of a mineralized zone, potential expansion of mineralization, the timing and results of future resource estimates, proposed timing of exploration and development plans at the Company’s mineral projects, and the estimation of mineral reserves and resources involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of Pilot Gold to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information.

Such factors include, among others, risks related to the interpretation of results at certain of our exploration properties, reliance on technical information provided by our joint venture partners or other third parties as related to any of our exploration properties; changes in project parameters as plans continue to be refined; successfully completing the earn-in on the TV Tower project; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; current and proposed exploration and development; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; uses of funds in general including future capital expenditures, exploration expenditures and other expenses for specific operations; the timing and success of exploration activities generally; delays in permitting; satisfaction of Turkish requirements relating to the periodic submissions of Environmental Impact Assessments; possible claims against the Company or its joint venture partners; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration as well as those factors discussed in the Annual Information Form of the Company dated March 27, 2013 (the “AIF”) in the section entitled "Risk Factors", under Pilot Gold’s SEDAR profile at www.sedar.com.

Although Pilot Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Pilot Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. Accordingly, readers should not place undue reliance on forward-looking information. Further details relating to Pilot Gold are also available in the AIF, available under Pilot Gold’s SEDAR profile at www.sedar.com.