Mr. Patrick Reid reports

PILOT GOLD REPORTS YEAR-END FINANCIAL RESULTS AND CHANGE TO BOARD OF DIRECTORS

Pilot Gold Inc. has released its financial results and company highlights for the year ended Dec. 31, 2014, and has provided an update on company activities at its key projects. All dollar figures are expressed in U.S. dollars unless otherwise stated.

"Pilot Gold finished 2014 in a very strong position," stated Matt Lennox-King, Pilot Gold president and chief executive officer. "We have continued to grow with significant discoveries at Kinsley and TV Tower and a compelling new development scenario at Halilaga. We have the structure and financial strength to advance our projects in Nevada and Turkey, and maintain flexibility to pursue other value opportunities that may arise."

Outlook for 2015

"We anticipate that 2015 will be another year of discovery at Kinsley and TV Tower. The company expects to complete 32,000 metres of drilling in 2015, focused on exploration and resource definition drilling at both Kinsley and TV Tower.

"At Kinsley, we continue building on our success at the Western Flank, and will be stepping out to test compelling new drill targets across the property and Kinsley North, while continuing to advance metallurgical and engineering studies."

The discoveries of the Hilltop and Valley porphyries at TV Tower highlight the potential of this emerging gold-copper district. Extensive epithermal and porphyry-related alteration across TV Tower has led to the development of compelling targets across the property for further investigation in 2015. The nearby advanced-stage Halilaga copper-gold project demonstrates robust preliminary economics in a recently finalized preliminary economic assessment.

Financial and operational highlights through and subsequent to year-end:

• Increased the company's interest in TV Tower to 60 per cent after completing the earn-in requirements;
• Advanced multiple targets and advanced the Hilltop porphyry, as well as made two new discoveries at TV Tower, including the Valley and Columbaz copper-gold porphyries;
• Completed a total of 38,792 metres of drilling at the company's projects as part of the 2014 programs;
• Released a revised preliminary economic assessment for the Halilaga copper-gold porphyry deposit (15 kilometres to the east of the Valley and Hilltop porphyries at TV Tower);
• Acquired Cadillac Mining Corp., adding the prospective past-producing Goldstrike-Utah property to the company's portfolio of assets;
• Reported high-grade gold results, including near-surface oxide mineralization from several targets at Kinsley;
• Reported results of preliminary metallurgical testing of sulphide material at the Western Flank target at Kinsley, suggesting that it is amenable to production of a high-grade concentrate with excellent recovery;
• Reported a maiden resource on TV Tower, defining Turkey's third-largest silver deposit with significant gold credits;
• Raised $20-million (Canadian) from the issuance of 13,072,000 common shares of the company by way of a bought-deal financing through a syndicate of underwriters led by National Bank Financial Inc. and Scotiabank;
• Ended the year with $17.8-million in working capital.

Exploration highlights and significant events through and subsequent to year-end:

Kinsley Mountain

Kinsley is a Carlin-style, sedimentary-rock-hosted gold system and past producer located along the Long Canyon trend in northeastern Nevada.

The year ended Dec. 31, 2014, was pivotal for the project, with results from drilling demonstrating that gold is concentrated at the intersections of northwest- and north-northeast-trending structures and that the largely untested Secret Canyon shale horizon, host to the high-grade mineralization in the Western Flank, is a viable target over the entire property. The recurrence of these structural intersections across the property suggests a strong probability of further discoveries over the property.

As part of the 2014 drill program, the company completed 26,244 metres of drilling in 38 core holes and 45 reverse circulation holes, and discovered gold mineralization along a 3.5-kilometre-long corridor in the Secret Canyon shale horizon at the Western Flank, Right Spot, Secret Spot and Silica Knob targets.

Highlights from drilling along the Western Flank include (see press release dated Dec. 9, 2014):

• An intersection of 10.1 grams per tonne gold over 39.6 metres in PK186C;
• An intersection of 6.19 g/t Au over 45.7 m in PK175CA;
• An intersection of 21.3 g/t Au over 29 m in PK137.

During the year, the company also reported results of metallurgical testing of sulphide mineralization at the Western Flank illustrating gold recoveries from flotation and cyanidation of the tails ranging from 89 per cent to 95 per cent and concentrate grades up to 312 g/t gold, suggesting that the sulphide mineralization is amenable to flotation processing and potential production of a marketable gold concentrate. The company also received an amendment to the plan of operations providing for an additional 23 acres of disturbance on the never-before-drilled Kinsley North claims (see press release dated Jan. 19, 2015).

In the year ended Dec. 31, 2014, approximately $6.32-million in direct expenditures were capitalized at Kinsley (year ended Dec. 31, 2013: $3.85-million). Expenditures and activity through the year include: drilling and assaying ($4.25-million), salaries ($790,000), and road construction ($380,000).

The successes in 2014 have set the stage for the company's team to capitalize on its understanding of the stratigraphy and controls on mineralization at the property's Western Flank and historical pits, and test several high-priority targets in the recently permitted Kinsley North area. The 2015 program and budget currently approved for Kinsley are $2.01-million and include an 11,000-metre drill program.

A subsidiary of Nevada Sunrise Gold Corp. holds the remaining 20.9-per-cent interest in the property. The company and its partner are each obligated to finance their pro rata share.

TV Tower

TV Tower is an extensive epithermal gold-silver and porphyry copper-gold property located in the Biga district of northwestern Turkey. Pilot Gold currently holds a 60-per-cent beneficial interest in TV Tower. The company satisfied all requirements to complete the option to earn in during first quarter 2015. TMST, a subsidiary of Teck Resources Ltd., is the company's 40-per-cent joint venture partner at TV Tower.

During 2014, as operator, the company advanced a number of targets and made new discoveries at the 90-square-kilometre TV Tower project, including two gold-copper porphyries: Valley and Columbaz. It completed 9,158 metres of drilling at the Hilltop and Valley porphyry targets and K2 epithermal gold targets, and 3,390 metres of drilling at Columbaz as part of the 2014 program. Drilling highlights include (see press releases dated June 19, 2014, and Oct. 22, 2014):

• Valley: 1.59 grams per tonne gold and 0.48 per cent copper, or 2.41 grams per tonne gold equivalent, over 130.9 metres in KRD014, including 3.12 g/t Au and 0.85 per cent Cu (4.57 g/t AuEq) over 49.9 m;
• Hilltop: 0.22 g/t Au and 0.26 per cent Cu, or 0.67 g/t AuEq, over 261.3 m in KRD006, including 0.54 g/t Au and 0.36 per cent Cu over 57.8 m;
• Columbaz: 0.60 g/t Au and 0.11 per cent Cu, or 0.80 g/t AuEq, over 357.7 m in CD008C, including 8.41 g/t Au over 7.8 m.

In 2014, the company also completed an initial independent resource estimate for the KCD gold-silver-copper deposit in the northern part of the TV Tower property (see press release dated Jan. 23, 2014), and it continued to test the four-kilometre-long K2 oxide gold trend in the property's south.

During the year ended Dec. 31, 2014, Pilot Gold incurred approximately $4.6-million in exploration expenditures at TV Tower (year ended Dec. 31, 2013: $10.2-million). Expenditures during the year ended Dec. 31, 2014, included: drilling and assaying of $1.65-million, salaries of $1.82-million, and consultant costs of $540,000, with the rest including camp costs and transportation.

The 2015 exploration and drill program will focus on infill and exploration drilling at the project's porphyry copper-gold and oxidized high-sulphidation epithermal gold targets. The proximity to Halilaga and the result of the revised PEA on that project illustrate that smaller-scale, copper-gold porphyries can be designed to be low capex, provide high returns and a rapid payback. Although the proximity to Halilaga does not mean Pilot Gold will obtain similar results at TV Tower, the company hopes to progress the copper-gold porphyries at TV Tower to a point where the limits of the revised Halilaga PEA may illustrate the potential of the district.

A large area of the property displays extensive epithermal and porphyry-related alteration and remains relatively unexplored. Upon receipt of additional permits, testing exploration targets on the rest of the tenure is also planned. The $7.59-million program will be financed pro rata by Teck and Pilot Gold.

Halilaga

The company holds a 40-per-cent interest in Halilaga, a copper-gold porphyry project located 20 kilometres southeast of TV Tower. On Jan. 29, 2015, it released a revised PEA, illustrating a robust, flexible project that yields:

• $474-million after-tax net present value discounted at 7 per cent;
• A 43-per-cent after-tax internal rate of return;
• After-tax cash flow of $802.9-million.

The project, as under the revised PEA, requires $346-million in preproduction capital expenditures, paid back from operations in 1.3 years, after tax.

Pilot Gold's share of budgeted expenditures for 2014 was $600,000 (2013: $230,000). The company's share of actual expenditures through the end of 2014 was $590,000 (2013: $280,000).

Pilot Gold expects to continue discussing alternatives with TMST and various third parties on a process to unlock the value and potential of this unique development opportunity. Pilot Gold's share of the budget for 2015 is approximately $330,000.

The revised 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 preliminary assessment and economics set forth in the PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral resource estimates do not account for minability, 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.

Selected financial data

The selected financial data in the attached table are derived from the company's consolidated financial statements for the years ended Dec. 31, 2014, 2013 and 2012, as prepared in accordance with international financial reporting standards.

                          FINANCIAL HIGHLIGHTS
                                                Twelve months ended Dec. 31,   
                                              2014         2013         2012

Loss for the period                   $  6,709,098 $  9,142,314 $  8,019,202
Loss and comprehensive loss for the                                         
year                                  $ 10,535,641 $ 12,516,033 $  7,393,038
Basic and diluted loss per share      $       0.07 $       0.10 $       0.12

For the year ended Dec. 31, 2014, the company reported a net loss of $6.71-million compared with a net loss of $9.14-million and $8.02-million for the years ended Dec. 31, 2013, and 2012, respectively. The most significant contributors to the loss for the year ended Dec. 31, 2014, were the cost of wages and benefits of $1.82-million (2013: $1.73-million and 2012: $2.13-million), non-cash stock-based compensation of $1.22-million (2013: $2.28-million and 2012: $1.72-million), office and general expenses of $1.21-million (2013: $1.29-million and 2012: $1.34-million), and a decline in the fair value of financial instruments of $900,000 in 2013 (2013: $1.58-million, 2012 and $160,000). For the years ended Dec. 31, 2013, and 2012 there were $1.37-million and $1.52-million writedowns in deferred exploration expenditures, respectively, versus $140,000 in 2014.

Expenses for the years ended Dec. 31, 2014, 2013 and 2012 were offset by finance income of $320,000 (2013: $360,000 and 2012: $190,000), and in 2012, the reversal of a previous impairment of the VAT receivable in Turkey ($310,000). The loss per share for the year ended Dec. 31, 2014, was seven cents (2013: 10 cents and 2012: 12 cents).

Total assets increased to $86.85-million (2013: $71.37-million and 2012: $72.39-million), reflecting the April, 2014, bought-deal financing with aggregate gross proceeds of $18.13-million, as well as the acquisition of Cadillac for a total consideration of $7.16-million.

During the year ended Dec. 31, 2014, $2.33-million was capitalized to TV Tower (2013: $15.70-million, including direct expenditures, consideration paid for the acquisition of Karaayi, a portion of which was paid with Pilot Gold common shares, the value of common shares issued in connection with the earn-in and the impact of foreign exchange), and $6.32-million was capitalized to Kinsley (2013: $6.27-million). The increase to total assets was offset by the impact of foreign exchange on the company's Canadian-dollar-denominated assets.

Liabilities at Dec. 31, 2014, 2013 and 2012 reflect primarily accounts payable and accruals recorded at year-end arising from continuing activities.

The company's cash and cash equivalents balance increased by $4.04-million over the course of the year, due to the cash inflows from financing activities of $18.22-million offset by cash operating outflows of $5.05-million, cash outflows due to investing activities of $8.20-million and foreign exchange losses on cash of $940,000.

Moira Smith, PhD, PGeo, chief geologist, Pilot Gold, is the company's designated qualified person for this news release within the meaning of National Instrument 43-101 (standards of disclosure for mineral projects) and has reviewed and validated that the scientific and technical information contained in this release is accurate. TV Tower and Kinsley are both early-stage exploration projects, and, except for the mineral resources at the KCD deposit at TV Tower, neither contains any mineral resource estimates as defined by NI 43-101. The potential to define a mineral resource at the copper-gold K2 zone of TV Tower, and on the Western Flank zone and Kinsley North area at Kinsley, is conceptual in nature, and there has been insufficient exploration to define a mineral resource thereat. It is uncertain if further exploration at either TV Tower or Kinsley will yield any mineral resources at Kinsley or additional resources at TV Tower.

This press release should be read in conjunction with Pilot Gold's audited consolidated financial statements and management's discussion and analysis for the year ended Dec. 31, 2014. These documents can be found on the company's website or under the company's profile on SEDAR. Shareholders may receive a printed copy of the audited consolidated financial statements, free of charge, upon request. All amounts are presented in U.S. dollars unless otherwise stated. Pilot Gold will be hosting its annual general meeting on May 14, 2015, in Vancouver, B.C.

Resignation of director

John Dorward has resigned as a director of the company, effective March 25, 2015, to focus on other professional obligations. Mr. Dorward has served on Pilot Gold's board of directors since its inception in 2011. The company would like to thank Mr. Dorward for his contributions.

Unless stated otherwise, information of a scientific or technical nature in this press release regarding the TV Tower, Halilaga or Kinsley Mountain properties is summarized, derived or extracted from the following technical reports: "Independent technical report for the TV Tower exploration property, Canakkale, western Turkey," effective Jan. 21, 2014, and dated Feb. 20, 2014, prepared by Casey M. Hetman, PGeo, with SRK Consulting (Canada) Inc., James N. Gray, PGeo, of Advantage Geoservices Ltd., and Gary Simmons, BSc, metallurgical engineering, of G.L. Simmons Consulting LLC; "Revised preliminary economic assessment technical report Halilaga project, Turkey," effective Dec. 20, 2014, and dated Feb. 16, 2015, prepared by Gordon Doerksen, PEng, Dino Pilotto, PEng, and Stacy Freudigmann, PEng, of JDS Energy and Mining Inc.; Greg Abrahams, PGeo, and Maritz Rykaart, PEng, of SRK; Mr. Simmons of G.L. Simmons Consulting; Garth Kirkham, PGeo, of Kirkham Geosystems Ltd.; and James Gray, PGeo, of Advantage Geoservices Ltd.; and "Updated technical report on the Kinsley project, Elko and White Pine counties, Nevada, USA," effective March 1, 2015, dated March 19, 2015, and prepared by Michael M. Gustin, CPG, Ms. Smith, PhD, PGeo, and Mr. Simmons, BSc, MMSA. For further detail on TV Tower, Kinsley Mountain or the Halilaga PEA, refer to the respective technical reports filed on the company's website or under Pilot Gold's SEDAR profile.

We seek Safe Harbor.