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

   Key Gold Holding Inc. (the "Company") (TSX VENTURE: KGH) hereby announces that it has received on December 31st, 2010, the conditional acceptance from the TSX Venture Exchange (the "TSX-V") regarding its non-brokered private placement of Flow-Through Shares.

The Company is happy to disclose that it closed as of December 31st, 2010 an amount of $525,000 which consists in the issuance from treasury of 2,916,000 common shares at a price per share of $0.18.

As disclosed in its press release dated December 30th, 2010, the Company intends to pay an intermediary fee of 10% on the proceeds of the financing to limited market dealers.

The common shares which will be issued from the present private placement will have a four month hold as of the date of issuance of said common shares.

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.

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 514-650-4171 [e-mail]