OOO Otis Gold Corp

Otis Gold Corp. ("Otis" or the "Company") (TSX VENTURE:OOO) is pleased to
announce that it has executed an agreement (the "Purchase Agreement") to
purchase a 100% interest in the Kilgore Gold Project (the "Kilgore Gold
Project") and related assets from Bayswater Uranium Corporation ("Bayswater")
for staged payments of US$1.75 million and 2.0 million shares. The Purchase
Agreement replaces an Option agreement ("Option Agreement") dated June 4th, 2008
in which Bayswater granted Otis the right to earn up to a 75% interest in the
advanced stage Kilgore Gold Project and related assets, including the
early-stage Hai and Goldbug precious metal projects. 


The benefits to Otis of increasing its interest in the Kilgore Gold Project and
related assets are as follows:




--  Under the existing Option Agreement, Otis was required to issue 2.2
    million shares and complete a pre-feasibility study (expected to cost up
    to $1.0 million) to reach a 75% ownership interest. Under the new
    Purchase Agreement, Otis has acquired a 100% interest in exchange for
    stage payments of US$1.75 million in cash and the issuance of 2.0
    million shares; 

--  The existing 2% NSR in favour of Bayswater is eliminated, materially
    enhancing future project economics; and 

--  Ownership of 100% of the asset substantially increases the flexibility
    respecting the timing of the exploration and potential development of
    the Kilgore Gold Project. 



Subject to regulatory approval, the cash will be paid according to the following
schedule: US$750,000 in 45 days, US$750,000 in 4 months, and US$250,000 in 12
months. Also subject to regulatory approval, issuance of the shares will be
according to the following schedule: all shares will be issued at closing and,
in addition to the statutory 4-month hold period, will be subject to hold
periods which will expire 6 months after closing (as to 500,000 shares), 12
months after closing (as to 500,000 shares), 18 months after closing (as to
500,000 shares) and 24 months after closing (as to 500,000 shares). Under the
existing Option Agreement, to date Otis has paid US$200,000, issued 1,300,000
common shares and completed over US$3,000,000 in exploration work. Closing will
occur within 45 days of the date of the Purchase Agreement, subject to
regulatory approval. 


The Kilgore Gold Project comprises a large, 5 square mile, volcanic-hosted
epithermal gold system situated on the northern margin of the eastern Snake
River Plain. Pliocene-age mineralization is hosted in Miocene lithic and crystal
tuff on the margin of a caldera setting. Mineralization style and setting, host
rock type and thickness, and overall size of the mineralizing system are
analogous to those characterizing the Round Mountain, Nevada and McDonald
Meadows, Montana multi-million ounce volcanic-hosted disseminated gold deposits,
where high-grade, coarse-gold feeder veins also exist. 


Since initiating activities at Kilgore in mid-2008, Otis has completed 56
diamond drill holes totalling approximately 11,500 metres at the Kilgore Gold
Project. Additionally, metallurgical testing on four samples from Mine Ridge is
being conducted by McClelland Labs of Reno, Nevada, and an Environmental Scoping
Study by Golder Associates is in progress. In 2011, Otis is planning an
aggressive drill program that will include additional resource development
drilling at the Mine Ridge deposit and exploration drilling at the highly
prospective Dog Bone Ridge geophysical targets (see News Release dated September
15, 2010). Additionally, in 2011 Otis will be completing an updated NI 43-101
resource calculation on the Mine Ridge deposit to reflect drilling completed
from 2008 to 2010.


Otis is extremely pleased with the acquisition and has budgeted for all cash
payments from its existing working capital. States Craig Lindsay, President of
Otis: "This is a major milestone in the development of Otis that adds immediate
shareholder value at a favourable cost to the Company. We felt it was critical
to have a 100% interest in our flagship project as we advance Kilgore towards a
production decision and we look forward to fully realizing the potential of the
Kilgore Gold Project in the future."


John R. Carden, Ph.D., Lic. Geo., a Qualified Person as defined by National
Instrument Policy 43-101, is responsible for the technical information contained
in this News Release.


About the Company

Otis is a resource company focused on the acquisition, exploration, and
development of precious metal deposits in Idaho, USA. Otis is currently
developing its flagship property, the Kilgore Gold Project, located in Clark
County, Idaho.


ON BEHALF OF THE BOARD

Craig T. Lindsay, President and CEO - Otis Gold Corp.

This press release contains forward-looking information within the meaning of
applicable securities laws relating to the closing of the PP. The use of any of
the words "intend", "expect", "anticipate", "continue", "estimate", "objective",
"ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and
similar expressions may identify forward-looking information. Readers should not
place undue reliance on the forward-looking information contained in this press
release. Specific forward-looking information contained herein relates
specifically to the acquisition of the Kilgore Gold Project.


The forward-looking information contained in this press release is made as of
the date hereof and the Company undertakes no obligation to update publicly or
revise any forward-looking information, whether as a result of new information,
future events or otherwise, unless so required by applicable securities laws.


This news release does not constitute an offer to sell or a solicitation of an
offer to sell any securities in the United States. The securities have not been
and will not be registered under the United States Securities Act of 1933, as
amended (the "U.S. Securities Act") or any state securities laws and may not be
offered or sold within the United States or to U.S. Persons unless registered
under the U.S. Securities Act and applicable state securities laws or an
exemption from such registration is available.

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