Key Gold Holding Hires Ansacha Capital Inc. for Investor Relations and Announces Grant of Stock Options

   Key Gold Holding Inc. (TSX VENTURE: KGH) ("Key Gold") announces that it has granted an aggregate of 650,000 options (the "Options"), including 600,000 options to officers and directors, to purchase common shares of Key Gold exercisable at a price of 0.21 per common share until January 31, 2016.

The Options are granted pursuant to the company's incentive stock option plan which was approved by shareholders at the Key Gold's annual general meeting of shareholders held on January 19, 2011 (the "Plan").

Key Gold is also pleased to announce the engagement of Ansacha Capital Inc. ("Ansacha") to perform corporate advisory and investor relations services for the company, effective January 1, 2011 for a period of twelve months. Ansacha will assist with the creation, coordination and implementation of Key Gold's targeted public and investor relations outreach objectives. As part of its mandate, Ansacha will introduce Key Gold to the retail and institutional investment communities as well as to companies having the profile to be a potential joint venture partner for a project in Key Gold's portfolio. Ansacha does currently hold, either directly or indirectly, 625,000 shares of Key Gold.

As compensation for its services, Ansacha is entitled to a fee of $4,000 per month. Additionally, Key Gold will grant 100,000 stock options to Ansacha at an exercise price of 0.21$ for a period of two years, subject to regulatory approval. The options will vest in accordance with the Plan.

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.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contacts: Key Gold Holding Inc. Louis Lessard President 418-781-0272 418-650-4922 (FAX) [e-mail] www.keygoldholding.com Ansacha Capital Inc. Jean-Francois Lemay 514-214-8388 [e-mail]