Key Gold Holding Completes Acquisition of the Souart Gold Property and Reports on Completion of NI 43-101 Technical Report

Key Gold Holding Inc. (TSX VENTURE:KGH) ("Key Gold") is pleased to announce that
the TSX Venture Exchange has accepted the previously announced acquisition of
the Souart Gold property (the "Property" or "Souart Gold Property") from arm's
length vendors (see news release of December 9, 2010).


Key Gold has now completed the acquisition of the Souart Gold Property. Key Gold
has paid $40,000, issued 1,030,000 common shares and undertook to complete
$750,000 in exploration work within the next 12 months. If Key Gold elects to
retain the property, it will be required to pay an additional $450,000 and issue
another 4,470,000 common shares over the next three years and to complete an
additional $1,000,000 in exploration over the next two years.


A finder's fee of 500,000 common shares of Key Gold will be paid to Ansacha
Capital Inc. on this transaction.


The Souart Gold Property

The Property is located in the northwest of the Province of Quebec, 100
kilometers east of the Town of Lebel-sur-Quevillon and 180 kilometers Southwest
of Chibougamau, Province of Quebec. 


The region has a skilled workforce, access roads with infrastructures including
water and electricity. Topographic relief is low and generally does not exceed
15 meters, typical of the glaciated Canadian Shield. The Property is in the
vicinity of the Barry Lake Gold camp of West Central Quebec where the Barry
Deposit (269,000 tonnes at 4.10 g/t Au of Indicated resources and 450,000 tonnes
at 4.68 g/t Au of Inferred Resources) and the Lac Rouleau Deposit (544,000 tons
at 7.2 g/t Au) are located as well. The resource estimates for the Barry Deposit
are compliant with NI 43-101. For the Lac Rouleau Deposit, these resource
estimates are of historical nature and do not comply with NI 43-101.


Gold mineralization in the area was discovered nearby at Rouleau Lake in the
1930's. On the Souart Gold Property, gold was first observed by a prospector
called Marston Wright in 1945. In 1949, Roybar Uranium & Gold Mines Ltd.
completed 30 diamond drill holes. In 1950, Nubar Mines Ltd. developed a 44
meters deep shaft and drove 135 meters of drifts and crosscuts. Several
exploration surveys were then completed by other companies (Glenelm Developers,
Goldmaster Mines, Shell Canada, Tut Explorations, SDBJ and Oasis Resources).
Between 1985 and 1990, Oasis Resources Inc. completed 152 DDHs followed with a
resource calculation of 564,000 tons at 6.2 g/t Au. These resource estimates are
of historical nature and do not comply with NI 43- 101.


No mineral resource was calculated on the Souart property recently.

The Property is 100% owned by Key Gold and it consists of 56 mining claims
covering approximately 876 hectares and is in good standing as of the date
hereof.


In February of 2011, Geologica Groupe-Conseil Inc. ("Geologica") were
commissioned to author a technical compilation and review report (the "Report")
on the Souart Gold Property. The purpose of the report is to present an
independent Property review technical report summarizing previous work,
reviewing the exploration potential of the Property and making recommendations
towards future work on the Property. On April 3 and 4, 2011 Daniel Gaudreault,
P. Eng., conducted a site visit of the Souart Gold Property. The research, site
visit, and data compilation programs conducted with respect to this Report, have
lead Geologica to the conclusion that the Souart Gold Property represents a
solid gold and base metal exploration target which warrants a systematic and
phased series of mineral exploration programs to adequately appraise the
project's economic potential.


Geologica believes that the mineralized zones on the Souart Gold Property of Key
Gold Holding offer the potential to increase the resources on the lateral and
depth extensions. Outside and along strike of the "Main Structure" (along with
the East, Central and West Zones), the location most amiable for gold
mineralization on the property is the NE-SW trending magnetic anomalies and
reverse faults.


The NE-SW contact separating two lithological (volcanosediments and altered
sediments) units of contrasting magnetic susceptibilities remains highly
favourable along trend. Gold occurrences are frequently associated with
quartz-carbonate-tourmaline subvertical and related subhorizontal conjugate and
subsidiary structures. Gold deposits and occurrences in the area are also
associated with faults to the north and east of the property. These include
Rouleau and Kent Lakes as well as the Windfall Faults.


Following results of past exploration works, several important elements can be
elaborated:




--  The presence of several auriferous zones was recognized over 1,200
    meters lateral extension and more than 300 meters deep, within sericitic
    schists of (deformed amphibolitized sediments); 
--  The presence of an hydrothermal auriferous context, where gold is
    associated with stockworks and sulphides (pyrite and locally
    chalcopyrite); 
--  The gold is mainly coarse and concentrated in conformity with the
    schistosity. This assemblage is probably responsible for high grade
    values and poor sample representativity; 
--  At this stage of exploration and with previous observations, the non-
    compliant resources are 564,000 tons at 6.2 g/t Au on the Souart Gold
    Property of Key Gold. 



To validate previous exploration efforts, a first phase program of $346,500 will
consist of geoscientific compilation followed by verification and validation
drilling with chosen twin diamond drill holes. If warranted, during Phase II a
10,000 metre drill program is planned in conjunction with the construction of a
geological model and the calculation of a resource estimate. Both phases I and
II are valued at $2,829,750. The exploration programs are designed to locate
claim boundaries, the historical drill collars and to test the Souart Gold
Property's precious and base metal mineral potential. These results will guide
Key Gold's subsequent mineral exploration programs on the Property.


This release was approved by Rick Bonner, B. Sc., P. Geo., a director of the
Corporation, who is a Qualified Person under National Instrument 43-101.


About Key Gold Holding Inc.

Key Gold Holding Inc. is a mineral exploration company that is mainly focused on
the acquisition, exploration and development of gold and copper properties.


Forward looking Statement

This document contains certain forward looking statements which involve known
and unknown risks, delays, and uncertainties not under the corporation's control
which may cause actual results, performance or achievements of the corporation
to be materially different from the results, performance or expectation implied
by these forward looking statements.


Shares outstanding: 25,781,719