DAU Common Shares

Desert Gold Ventures Inc. (TSX VENTURE: DAU)(OTCQX: DAUGF)(FRANKFURT: QXR1) ("Desert Gold" or the "Company") is pleased to announce the signing of an Option Agreement (the "Agreement") with Mr. Mohammed Sylla of LA SOCIETE KAI GLOBAL LTD. (the "Vendor") for the exploration and exploitation of the KAI gold property located in Guinea.

The KAI gold property (the "Property"), which formed a substantial portion of the original agreement with SM/HM Guinea SARL, consists of approximately 418 square kilometers in the Region of Kankan, in the Prefecture of Siguiri, about 850km from the capital city of Conakry. In March the Company signed an initial Option Agreement with SM/HM Guinea SARL, a company registered in Guinea, Conakry (see news release of March 29th 2010). In June of 2010 the Company carried out an initial property examination using a team consisting of a contract geologist and a mining engineer (see news release of June 15th 2010).

The Company has now entered into an Option Agreement with Mr. Mohammed Sylla, the underlying owner of the claims making up the property. The Agreement provides for the Company to acquire a 70% undivided right, title and interest in and to the Property subject to a 2% NSR. Details of the transaction include an initial cash payment of $75,000 USD upon Exchange approval, a further cash payment of $75,000 USD 12 months from Exchange approval, and a cash payout of $1.5-million based on the successful completion of an NI 43-101 Report with a resource of at least 750,000 ounces of recoverable gold from the Property. The Company will also issue shares to the vendor in the amount equal to $75,000 USD upon Exchange approval, with a further share issuance equal to $75,000 USD, 12 months from Exchange approval. The 2% NSR is subject to a buy-out clause by the Company for 1 % of the agreed NSR for $2-million CAD.

This Agreement is subject to final due diligence by the Company, acceptance of the Agreement by the Company's Board of Directors and approval of the transaction by the TSX Venture Exchange.

Contingent on final approvals and successful due diligence the Company intends to deploy resources into Guinea by developing human resources and a corporate presence in the country in conjunction with the local Guinean partners. An initial visit to Guinea and the Property by the Company's Management team is planned for early January 2011. Initial exploration is planned for Q1 2011 with the objective of further defining potential gold zones to define a drilling program.

In addition to this Agreement, the Company will be nominating Mr. Sylla to its Advisory Board in support of the development of the Guinean properties. Mr. Sylla will also be charged with utilizing his extensive network to introduce the Company to other potential mining acquisitions in Guinea and elsewhere in Africa.

Desert Gold Chairman, Mr. Ayub Khan says, "Mr. Sylla, an active and successful businessman who played football professionally, notably with the Celtic Rangers, enjoys a privileged relationship with his home country of Guinea. His partnership and corporate responsibilities will be an invaluable asset to Desert Gold for the advancement of our Guinean properties. We intend to make Guinea one of our key African focuses, and we believe this acquisition will complement and strengthen our expanding global portfolio of properties."

The Company, pursuant to the Company's stock option plan, has granted a total of 200,000 incentive stock options to directors, officers, employees and consultants. The options granted will be exercisable at a price of $1.25 per share for a period of five (5) years and will be subject to a vesting schedule in accordance with TSX Venture Exchange requirements.

We seek safe harbor.

On Behalf of the Board of Directors,

Ayub Khan, Chairman

This release includes certain statements that may be deemed to be "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration and development activities and events or developments that the Company expects, are forward-looking statements. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploration and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see our public filings at www.sedar.com for further information.

Neither the 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: Desert Gold Ventures Inc. Ayub Khan Chairman 604 687 2038 604 687 3141 (FAX) www.desertgold.ca