RECENT HIGHLIGHTS:

• Raised aggregate gross proceeds of C$37.5 million on November 1^st from bought-deal financing led by National Bank Financial Inc. and a syndicate of underwriters (the “Offering”), and concurrent private placements with subsidiaries of Newmont Mining and Teck Resources
• Announced positive results of a preliminary economic assessment (“PEA”) for the Halilağa copper-gold project in northwest Turkey
• Reported initial results from the high-grade KCD target at TV Tower that included 5.94 g/t gold, 12.6 g/t silver and 0.53% copper over 137.1 metres in KCD039
• Released strong drill results from Kinsley Mountain that demonstrate mineralization extending over a 2.2 kilometre trend, including 5.48 g/t gold over 20.4 metres in PK14C, 2.3 g/t gold over 19.8 metres in PK057, and 6.03 g/t gold over 13.7 metres in PK061
• Assumed operational control at TV Tower with an option to increase to 60% ownership and commenced a 16,000-metre, year-one resource definition and exploration drill program
• Earned an initial 51% interest at Kinsley, and elected to earn-in to a 65% interest in the property

WORK PROGRAM UPDATES

TV Tower

Pilot Gold became project operator at TV Tower on June 20, 2012 and holds an option to increase its interest in TV Tower to 60% over the next three years. Our 2012 program includes 9,000 metres of core drilling designed to infill and expand the mineralized footprint of the KCD target.

Initial drilling by Pilot Gold at KCD has returned one of the highest-grade gold, silver and copper drill intervals ever reported in Turkey, including KCD-39, which returned 5.94 g/t gold, 12.6 g/t silver and 0.53% copper over 137.1 metres. Approximately 6,075 metres in 29 holes have been completed at the KCD target, with assays pending for 27 holes. Three drills are operating at TV Tower. In addition to drilling, a property-wide effort including detailed geological mapping, geochemical sampling, airborne geophysics, and target definition has been underway since March. This work has identified several additional high-potential targets, including gold-silver bearing quartz veins with multi-ounce gold and silver grades. Systematic drill testing of other high-priority targets will begin in early 2013. Through the nine months ended September 30, 2012, we incurred $1.51 million in earn-in eligible expenditures in accordance with the TV Tower Agreement. Our 2012 budget is $4.13 million.

Teck Resources Limited’s Turkish subsidiary, Teck Madencilik Sanayi Ticaret A.S. (“TMST”), is Pilot Gold’s 60% joint venture partner at TV Tower.

Kinsley Mountain:

In mid-September, the Company concluded an 11,864 metre drill program focused on expanding the mineralized footprint around the historic open pits on Kinsley Mountain and testing targets located 600 metres to the northwest of the historic operation. Through September 30, 2012, we had capitalized $3.31 million (year-ended December 31, 2011: $1.13 million) in expenditures at Kinsley, compared to a revised budget of $2.9 million for the year. Capitalized costs include values attributable to stock-based compensation, share issuances and other non-cash items directly relating to the advancement of the property that are not eligible toward earn-in.

Highlights to date include:

• 2.30 g/t gold over 19.8 metres in PK057, extending mineralization over a 2.2-kilometre trend length
• 6.03 g/t gold over 13.7 metres in PK061, 600 metres northwest of the nearest historic pit
• 5.48 g/t gold over 20.4 metres in PK014C
• Staked 41 additional claims, consolidating our land position
• Submitted a Plan of Operations for expanded exploration activities

The 2012 program identified a north-trending zone of higher-grade mineralization measuring at least 400 metres by 100 metres. This north-trending zone remains open in all directions in the Western Flank area. Drilling has also intercepted high grades at deeper stratigraphic levels than previously encountered and identified a new zone of mineralization, Candland Canyon on the northeast side of the mine trend.

During Q2 2012, Pilot Gold submitted a Plan of Operations for 100 acres of disturbance to the Bureau of Land Management (“BLM”) that will allow for expanded exploration activities. The Company has a permit in place for additional drilling at the Western Flank target. Pilot Gold plans to apply for an additional Notice of Intent permit for drilling the northern claim blocks.

In September 2012, Pilot Gold added significantly to the property position at Kinsley by staking 41 unpatented lode mining claims underlain by highly prospective geology on BLM-administered ground held prior to that point by another company. The majority (36) of the new claims are located between two previously separate claim blocks at Kinsley, creating a contiguous property and consolidating access to the main mineralized trends to the north. The additional staking brings the total to 332 claims. Surface work including mapping and rock and soil sampling are underway on the newly added ground.

Pilot Gold completed an earn-in to an initial 51% interest at Kinsley during the second quarter of 2012, and elected to exercise an option to earn a further 14% interest in the property. The Company has already incurred approximately 90% of the expenditure requirement to attain that 65% interest, and anticipates completing earn-in in early 2013. A subsidiary of Nevada Sunrise Gold Corporation is our joint venture partner at Kinsley.

Halilaga:

On October 10^th, 2012 the Company released the results of a PEA that highlights the economic benefits of the higher grades of gold and copper at surface, as well as the benefit from available infrastructure for mine development. The results of the Halilağa PEA provide convincing support for continued resource conversion and expansion drilling, as well as geotechnical, metallurgical and engineering studies.

PEA Highlights (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 NPV_7% of $675 million; After-tax NPV_7% of $474 million
• 2.1 year pre-tax payback; 2.7 year after-tax payback
• Approximately a 1:1 strip ratio

The Halilağa PEA is preliminary in nature. It includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be characterized as mineral reserves, and there is no certainty that the PEA will be realized.

Highlights for the quarter from resource expansion and conversion drilling included 0.64 g/t gold and 0.52% copper over 134.9 metres in HD-115. A total of 7,484 metres comprising 20 completed drill holes have been completed in 2012. Results from eight holes are currently pending.

Budgeted expenditures for 2012 are $4.87 million, with Pilot Gold’s share totalling $1.95 million. Our share of actual expenditures through the end of the first nine months in 2012 was $1.31 million.

The Halilağa PEA recommends metallurgical, environmental and engineering studies, and community activities to continue to advance and de-risk the project. We expect to continue discussions with TMST, our 60% partner at Halilağa, on strategic next steps for this compelling development project.

FINANCIAL DATA

The following selected financial data is derived from our consolidated interim financial statements for the three and nine months ended September 30, 2012, as prepared in accordance with International Financial Reporting Standards.

As described in our unaudited condensed interim consolidated financial statements, a portion of the comparative period reflects the application of continuity of interest accounting. Pursuant to the application of continuity of interest accounting, balances recognized and transactions recorded through March 30, 2011, reflect an allocation of cash flows, expenditures and activities based on the amounts recorded by Fronteer Gold Inc. (“Fronteer”) attributable to Pilot Gold’s assets and business. March 30, 2011 was determined to be the effective date for accounting purposes of the arrangement agreement between Fronteer and Newmont Mining, pursuant to which Pilot Gold ceased to be a wholly-owned subsidiary of Fronteer and Newmont acquired all the outstanding common shares of Fronteer.

• For the three months ended September 30, 2012, we reported a net loss of $1.81 million compared to a net loss of $2.06 million for the three months ended September 30, 2011. The loss per share for the three months ended September 30, 2012 was $0.03 (three months ended September 30, 2011: $0.03). The most significant contributors to the loss for the three and nine months ended September 30, 2012 were stock based compensation ($0.33 million and $1.37 million respectively), the cost of wages and benefits not directly relating to exploration on any of the Company’s properties ($0.41 million and $1.31 million respectively), as well as $0.54 million (for both three and nine months) for the write down of mineral property interests the Company determined that it will no longer actively pursue. Expenses for the nine months ended September 30, 2012 were offset by income resultant from a change in fair value of our financial instruments ($0.56 million) and the write up of a VAT receivable in Turkey re-designated as recoverable ($0.39 million). In the comparative periods, the most significant contributors to the losses were also stock based compensation and wages as well as property investigation expenses.
• Other comprehensive income (loss) for the three and nine months ended September 30, 2012 was $0.49 million and a loss of $0.17 million, respectively (three and nine months ended September 30, 2011: loss of $2.42 million and $2.16 million, respectively). The nine months ended September 30, 2012 includes a net value loss on financial assets of $0.98 million (nine months ended September 30, 2011, loss of $0.08 million), relating to the revaluation of common shares the Company holds in other publicly listed companies. Other comprehensive loss for the nine months ended September 30, 2012 also includes a $0.81 million gain (September 30, 2011: loss of $2.08 million) from the impact of exchange gains and losses arising from exchange differences further to the translation of our foreign operations with a non-United States dollar functional currency.
• Current assets decreased to $8.03 million as at September 30, 2012 (December 31, 2011: $18.90 million), and comprise primarily cash and short-term investments of $7.15 million (December 31, 2011: $18.42 million). The decrease reflects cash outflows related to exploration and corporate activities through the nine months ended September 30, 2012. The remaining balance of current assets comprises receivables and prepayments.
• The value of the initial shares and warrants issued to TMST relating to the TV Tower Earn-in Option ($4.4 million) has been capitalized to the balance sheet. This non-current asset also includes the value of legal costs paid to secure the earn-in option, and certain exploration expenditures incurred on TV Tower.
• The net cash outflow relating to operating activities through the nine months ended September 30, 2012 was $3.61 million, compared to a net cash outflow of $3.13 million in the same period of the prior year. The most significant components of which were wages and benefits and office-related costs (aggregate of $2.47 million and $1.78 million through the nine months ended September 30, 2012 and 2011 respectively). Cash outflows relating to our continuing investment in mineral properties was $3.90 million and $4.49 million through the nine months ended September 30, 2012 and 2011, respectively.
• At September 30, 2012, there were 62,485,286 issued and outstanding shares (September 30, 2011: 59,085,286). The increase reflects primarily the shares issued to TMST to secure the TV Tower earn-in option. Subsequent to period end, the Company issued an aggregate of 22,725,048 additional common shares as part of the Offering and concurrent private placements.

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 three and nine months ended September 30, 2012. 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 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 the TV Tower and Kinsley gold projects and a 40% interest in the Halilağa copper-gold porphyry project, each of which has the ability to drive the Company forward. For more information, visitwww.pilotgold.com.

TECHNICAL INFORMATION:

Moira Smith, P. Geo., Pilot Gold Chief Geologist, 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 this release is accurate.

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.; all of which technical reports have been filed under the Company’s issuer profile on SEDAR at www.sedar.com.

Kinsley Mountain and TV Tower are early-stage exploration projects and do 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 being delineated as a mineral resource.

The Halilağa PEA is preliminary in nature, it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be characterized as mineral reserves, and there is no certainty that the Halilağa PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral resource estimates do not account for mineability, selectivity, mining loss and dilution. These mineral resource estimates include inferred mineral resources that are normally considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is also no certainty that these inferred mineral resources will be converted to measured and indicated categories through further drilling, or into mineral reserves, once economic considerations are applied.

FORWARD-LOOKING INFORMATION

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 and timing of obtaining permits or completing earn-in obligations 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, molybdenum 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, timing of exploration and development plans at the Company’s mineral projects, completion of expenditure obligations under the Kinsley Mountain Option Agreement; funding cash-calls made by TMST for ongoing expenditure on the Halilaga property, successful earn-in on the TV Tower project, including the ability to incur the minimum annual Expenditure Requirements and future issuances of Common shares as consideration to complete the earn-in agreement, ability to fund cash-calls made by our joint venture partners for ongoing expenditures on our joint venture properties; current and proposed exploration and development, estimated future working capital, uses of funds, future capital expenditures; information with respect to exploration results, the timing and success of exploration activities generally; the costs and timing of the development of new deposits, potential quantity and/or grade of minerals, potential size of mineralized zone, potential expansion of mineralization, potential type of mining operation; the timing, timeline and possible outcome of permitting or license renewal applications; the ability to maintain or convert the underlying licenses in accordance with the requirements of the Turkish Mining Law, government regulation of exploration and mining operations, environmental risks, including satisfaction of Turkish requirements relating to the periodic submissions of Environmental Impact Assessments, title disputes or claims, and limitations on insurance coverage 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 and actual results of historical production 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 other exploration properties; changes in project parameters as plans continue to be refined; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; 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 (“AIF”) for the year ended December 31, 2011 and the Company’s (final) short form prospectus dated October 25, 2012, each in sections 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.