Step-Out Drilling at TV Tower Returns 8.64 g/t Gold Over 10.5 Metres, Extends High-Grade Mineralization 50 Metres Southeast

Recent drill highlights include:

--  2.79 g/t gold (Au), 10.1 g/t silver (Ag) and 0.67% copper (Cu) over 61.3
    metres in KCD-65, including
    --  8.64 g/t Au, 35.2 g/t Ag and 2.21% Cu over 10.5 metres;
--  3.31 g/t Au, 6.9 g/t Ag and 0.70% Cu over 46.7 metres in KCD-56,
    including
    --  10.02 g/t Au, 9.5 g/t Ag and 0.87% Cu over 8.5 metres;
--  2.37 g/t Au, 8.3 g/t Ag and 0.35% Cu over 33.7 metres in KCD-63,
    including
    --  4.81 g/t Au, 18.6 g/t Ag and 0.67% Cu over 6.9 metres

KCD-63 and KCD-65 extend gold mineralization 50 metres southeast of drill hole KCD-49, which was announced November 14, 2012 and returned 11.63 g/t gold over 32.5 metres. The central zone of gold mineralization now covers an area measuring 300 metres by 200 metres and contains previously announced high-grade drill holes including KCD-39 (5.94 g/t gold over 137.1 metres), KCD-50 (193 g/t gold over 12.0 metres(1)), and KCD-46 (10.03 g/t gold over 15.2 metres). The gold zone is capped by a blanket-style, shallow silver zone. Testing of the silver zone over an area measuring approximately 300 metres by 500 metres shows the zone extends to the north and is wide open for expansion.

"Step-out holes KCD-65 and KCD-63 confirm that a substantial area of strong gold mineralization continues to grow and remains open down-dip to the north and along strike to the northwest and southeast," said Moira Smith, Pilot Gold's Chief Geologist. "We are encouraged that step-out drilling based on our geological model is predictive and successful and, in turn, the results have helped further refine our interpretation of key stratigraphic and structural controls."

Detailed recent drill highlights from the gold, silver and copper zone include:

----------------------------------------------------------------------------
                                                                        Gold
               From       To  Intercept     Gold    Silver   Copper  cut-off
Hole ID         (m)      (m)        (m)    (g/t)     (g/t)      (%)      g/t
----------------------------------------------------------------------------
KCD065        102.5    163.8       61.3     2.79      10.1     0.67      0.3
----------------------------------------------------------------------------
 including    113.0    123.5       10.5     8.64      35.2     2.21      3.0
----------------------------------------------------------------------------
 including    113.0    115.0        2.0    24.60     130.5     5.91     10.0
----------------------------------------------------------------------------
 including    156.8    163.8        7.0     5.38      14.6     1.45      3.0
----------------------------------------------------------------------------
KCD056         57.6     71.3       13.7     1.25       0.2     5.61      0.3
----------------------------------------------------------------------------
 and          102.7    149.4       46.7     3.31       0.7     6.96      0.3
----------------------------------------------------------------------------
 including    128.1    136.6        8.5    10.02       0.9     9.51     10.0
----------------------------------------------------------------------------
KCD063         81.5    115.2       33.7     2.37       8.3     0.35      0.3
----------------------------------------------------------------------------
 including     84.2     91.1        6.9     4.81      18.6     0.67      3.0
----------------------------------------------------------------------------
KCD054         62.5     94.2       31.7     0.94      16.4     0.33      0.3
----------------------------------------------------------------------------
 and          202.1    217.0       14.9     3.38       2.9     0.17      0.3
----------------------------------------------------------------------------
 including    202.1    206.6        4.5     9.30       6.7     0.39      3.0
----------------------------------------------------------------------------
 including    203.6    205.1        1.5    12.90      13.2     0.66     10.0
----------------------------------------------------------------------------

All true widths are 30-100% 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 previous drill results, including non-reportable intercepts, please click: http://www.pilotgold.com/sites/default/files/TVTowerDrillResults1227.pdf.

For a map highlighting recent drilling, please click: http://www.pilotgold.com/sites/default/files/TVTowerDrillMap1227.pdf.

These 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 10,750 metres in 54 holes at KCD have been completed, with assays pending for 26 holes. Drilling through January 2013 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.

(1) Due to extremely high grades and the presence of visible gold, samples from KCD-50 are undergoing metallic screen assay verification. Results will be released when received.

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 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 0.30, 3.0 and 10.0 g/t Au. Silver and copper intercepts reported in the table are referenced to gold intercepts. 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 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 (greater than 100 ppm Ag or greater than 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.

Further information is available in the technical report entitled "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, 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.

Contacts:

Pilot Gold Inc. - Investors
Patrick Reid
VP Corporate Development
604-632-4677 or Toll Free 1-877-632-4677
info@pilotgold.com


Pilot Gold Inc. - Media
Ian Noble
Director, Corporate Communications
604-809-8750
inoble@oxygencapitalcorp.com
www.pilotgold.com