Key Gold Holdings Inc. Announces a Non-Brokered Private Placement of Flow-Through Shares

   Key Gold Holding Inc. (TSX VENTURE: KGH) (the "Company") hereby announces its intention to close on or about December 31st, 2010 a non-brokered private placement consisting of 3,333,333 flow-through shares at a price per share of $0.18 for proceeds of a maximum of $600,000.

The Company intends to pay an intermediary fee of 10% on the proceeds of the contemplated financing to limited market dealers.

About Key Gold Holding Inc.

Key Gold Holding Inc. is a junior mining exploration company listed on the TSX Venture Exchange whose mission, among others, is to invest in small-scale gold production projects and to provide expertise in financial and mining engineering with the objective of maximizing return on investments and shareholders' value.

Forward looking Statement:

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

Shares outstanding : 18,360,574

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: Louis Lessard President 514-650-4171 [e-mail]