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Pit Design and Drill Results Confirm Development Potential

Conceptual Pit Design and Drill Results Confirm Development Potential of Excelsior Deposit Highlights Conceptual mining study on large Excelsior resource supports deep (175m) openpit potential. Results from the latest Excelsior drilling program have potential to expand the conceptual pit design. Significant new results include o 32m 1.10g/t Au from 120m (KNC110016)and o 12m 7.09g/t Au from 59m (KNC110018). Strong mineralization in southernmost hole at Zoroastrian extends strike length of high grade mineralization o 4m 8.28g/t Au from 107m (KNC110018). Excelsior Gold is pleased to advise that preliminary conceptual mining studies conducted on the Excelsior resource in the central portion of the Companys 100% owned Kalgoorlie North Project support the potential for large open pit development of the deposit. Additional assay results received from the recently completed reverse circulation drilling program at Excelsior also defined broad intervals of gold mineralisation and higher grade zones which have potential to extend the conceptual pit design deeper beyond its current 175m vertical depth. EXCELSIOR CONCEPTUAL PIT DESIGN As part of the development program for the Excelsior resource and to assist with drill targeting, Auralia Mining Consulting Pty Ltd were engaged to conduct a conceptual mining study designed to ascertain the potential economics of open pit mining. In the study various processing scenarios were reviewed involving heap leach treatment of low grade material and toll treatment or owner operated milling of higher grade material. Mining and processing costs and physical parameters were sourced from current information supplied by metallurgical consultants or contained in Auralias database and a range of sensitivity analysis runs were conducted by Auralia utilising Whittle software. The study employed a gold price of A$1,500/oz and the resulting optimal Whittle shell was used to produce a conceptual pit design which is 680m long and extends to a maximum vertical depth of 175m (refer Figures 1and 2) The conceptual study was based on the current Excelsior resource model which contains Indicated and Inferred resources of 5.3 million tonnes 1.47g/t Au for 250,900 ounces (at 0.6g/t lower cut) as summarised in Table 1. This resource was established in March 2011 and has not been updated with new drilling information from the recently completed program. Table 2 below summarises the material gold inventory contained within the conceptual pit design based on possible toll treatment of higher grade material and heap leaching of lower grade material. The Auralia study, while conceptual in nature, provides strong support for the advancement of the project and additional mining analysis is proposed following update of the resource mode to incorporate all new drilling data. EXCELSIOR DRILL RESULTS Broad zones of gold mineralisation and higher grade intersections in further assay results received from reverse circulation drilling program at Excelsior are expected to extend the current resource model at depth to the north.

New intersections include 32m 1.10g/t Au from 120m (KNC110016) including o 8m 1.42g/t Au from 123m and o 14m 1.42g/t Au from 123m 12m 7.09g/t Au from 59m (KNC110018) including o 3m 20.9g/t Au from 62m and 22m 1.15g/t Au from 97m (KNC110018) Previously announced significant results included, 23m 2.21g/t Au from 73m (KNC110013) 15m 2.40g/t Au from 179m (KNC110014) and 22m 2.24g/t Au from 147m (KNC110015) In the current drilling program which was commenced in August, 15 reverse circulation holes totalling 2,711metres were completed over 750m of strike at Excelsior. Assays results for 9 of the 15 holes have been received from the laboratory, to date, with further sample batches yet to be processed. Details of the drill program are presented in Table 3. These drill results are anticipated to significantly improve the resource grades estimated in these locations within the current resource model as well as improving the resource confidence and/or extending the current resource.

This extension of the model and increase in block grade will potentially drive the Whittle optimisation deeper, particularly in the north. The intercepts of 12m 7.09g/t and 12m 1.62g/t (KNC110018) are very significant as they intersect the current block model where block grades are less than 1.2g/t Au near the northern end of the current conceptual pit design (refer Figures 3 and 4). Pushing the optimisation deeper in the north may well have an impact on the overall depth of the conceptual pit extending it deeper than its current 175 meter vertical depth Upon final receipt of all results new resource modelling will be conducted to facilitate more detailed mine analysis. The Company believes that the results of the conceptual mine design study at Excelsior are sufficiently encouraging to warrant an extensive infill and extensional drilling campaign (including deeper diamond drilling) which is, subject to appropriate approvals, anticipated to commence in late October.

Drilling will also be conducted at several of the satellite resources such as Jackorite, Castlereagh and Lochinvar in order to define possible reserves. Further engineering and metallurgical testwork is planned in preparation for mine prefeasibility studies on the Excelsior and surrounding satellite deposits. ZOROASTRIAN DRILL RESULTS At Zoroastrian the southernmost hole drilled in the recent program has returned a significant wide intercept of 29m 2.00g/t Au from 86m (KNC110021) including o 1m 5.42g/t Au from 86m, o 1m 6.52 Au from 96m and o 4m 8.28g/t Au from 107m This result is highly significant as it is interpreted to represent the same lode position as the previously announced result of 5m 5.89g/t Au from 94m (KNC110008) which was drilled 60m to the north. Combined with historical results of 2m 15.5g/t Au from 148m, 4m 10.8g/t Au from 66m and 6m 7.34g/t Au the interpreted strike of this one lode has been extended by 60m to over 250m. This represents only one of 15 interpreted potential high grade structures defined over a 900m strike length of the Zoroastrian vein system (refer Figure 5). The latest drilling was designed to confirm lode positions within the Zoroastrian area based on the Companys new structural analysis and drill holes to date have consistently intersecting quartz veining close to predicted locations. As yet no drilling has been conducted to specifically target highgrade controls within vein system. Results are still awaited for the diamond drilling conducted within the Zoroastrian Pit.

A new high grade resource model will developed for the Zoroastrian mineralisation upon receipt of all drilling results. Future targeted drilling is being designed to define potential economic shoots within the overall Zoroastrian system..