Pilot Gold Completes Acquisition of Cadillac Mining Corporation

VANCOUVER, BRITISH COLUMBIA -- (Marketwired - Aug 29, 2014) - Pilot Gold Inc. (TSX:PLG) ("Pilot Gold" or the "Company") is pleased to announce the completion of the previously announced acquisition of Cadillac Mining Corp. ("Cadillac") pursuant to a Court-approved plan of arrangement (the "Arrangement").

Under the Arrangement, shareholders of Cadillac received (i) 0.12195 of a Pilot Gold share, and (ii) 0.12195 of a Pilot Gold share purchase warrant (the "Pilot Warrants") for each common share of Cadillac held. Each whole Pilot Warrant entitles the holder to acquire one Pilot Gold share at an exercise price of C$2.00 with a two-year term. Existing Cadillac warrants and stock options are exercisable for Pilot Gold shares, adjusted in respect of exercise price and number, based on the 0.12195 exchange ratio.

"The acquisition of Cadillac Mining and its 100%-owned Goldstrike project is an attractive and strategic addition for Pilot Gold. At Goldstrike, the address, large land position, prospective geology, and extensive historic databases represent key building blocks for future growth and value creation," stated Matt Lennox-King, President & CEO of Pilot Gold. "The transaction provides Cadillac shareholders exposure to Pilot Gold's Kinsley, TV Tower and Halilağa projects, as well as our leading exploration and development team."


GOLDSTRIKE PROJECT

The Goldstrike project is a past producing sediment-hosted gold project located in Western Utah, and represents part of a growing class of Carlin-type gold targets located off the main Carlin and Cortez Trends.

Pilot Gold has begun the organization and compilation of the extensive database of historic information, and plans to initiate permitting activities on the property later in the year. The Company is focused on project incubation, synthesizing, and interpreting over 50 years of mining and exploration data on Goldstrike, leading into a comprehensive targeting campaign.

Goldstrike complements our existing project portfolio and enhances Pilot Gold's long-term strategy of focusing on high quality projects with high grades in supportive mining jurisdictions.


ABOUT PILOT GOLD

Pilot Gold is a well-funded gold exploration and development 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 Kinsley project in Nevada and the TV Tower and Halilağa projects in Turkey, each of which has the ability to become a foundational asset. We also have a pipeline of projects, including Goldstrike, that are characterized by large land positions and district-wide potential that can meet our growth needs for years to come.


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 validated that the scientific and technical information contained in this release is accurate.

Goldstrike is an early-stage exploration project and does not contain any mineral resource estimates as defined by NI 43-101. The legacy data presented herein is provided by Pilot Gold for informational purposes only, and gives no assurance as to its reliability and relevance to any potential or proposed exploration program at Goldstrike. Neither Pilot Gold nor Cadillac have 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. Assuming successful completion of the proposed transaction Pilot Gold anticipates verification of some or all of the legacy data, however, 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 potential quantity and/or grade of minerals, potential size and expansion of a mineralized zone, proposed timing of exploration and development plans. 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, 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, involves known and unknown risks, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information, including, without limitation risks related to the approval of applicable governmental authorities, interpretation of historic results at the Goldstrike property; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; 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; the timing and success of exploration activities generally; delays in permitting; possible claims against Cadillac, 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 14, 2014 in the section entitled "Risk Factors", under Pilot Gold's SEDAR profile at www.sedar.com and those risks described in Cadillac's previous public filings.

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 unless required by law.



Contact

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