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Hy Lake Gold Report on Drilling at Their Rowan Lake Mine Joint Venture

Hy Lake Gold Inc. (CNSX:HYL)(FRANKFURT:HYK) is pleased to announce that it has completed a 5,574 m, 21-hole drilling program at its 60%-owned Rowan Lake Mine property, held in a Joint Venture with Red Lake Gold Mines, a General Partnership of Goldcorp Inc. and Goldcorp Canada Ltd.

The drilling focused on two key areas of the property and followed up on the 2010 drilling programs at Rowan Lake. The initial 3,880 m, 17-hole phase of drilling focused on further extending the Rowan-NT Zone high-grade mineralized structural corridor along the strike both to the south-west, to the Confederation/Redstar property boundary, and to the north-east. An additional 1,694 m, 4-hole phase focused on further delineation of a series of several sub-parallel, high-grade gold zones to the east-north- east of the Rowan Lake Mine main shaft (Figure 1). Assay results will be released for each area of drilling once received and analysed by the Company.

The Rowan-NT Zone represents a 2010 discovery on the Rowan Lake Mine property (see news release of October 25, 2010). The Rowan-NT Zone is on trend, to the north-east with the Confederation/Redstar Newman Todd Structure, which has produced high grade results recently (see Confederation news releases of August 16th, 2011, September 12th, 2011 and of October 19, 2011).

Vadim Galkin, VP exploration, commented: "The main purpose of this summer drilling program was to establish how far the breccia structure extends to the north-east which resulted in a relatively closely spaced, shallow drilling plan. Drilling intercepted carbonate and quartz-carbonate breccias in all 17 holes with true width varying within a 35-100 m range. To date, the sub-vertical breccia corridor has been delineated along 870 m on the Joint Venture property and remains open at depth and along strike to the north-east for approximately an additional 1,000 metres. Hy Lake will continue its delineation drilling of the structure to the north-east and will increase the number of holes to test the continuity of the breccia zone downdip, below depths previously explored."

Gold assays from Hole HY-11-42 of this phase returned 2.35 g/t Au over 10 m and 4.23 g/t Au over 8 m, including 28.7 g/t Au over 1 m (see news release of July 14, 2011). The remaining assays are pending analysis by the Company and will be released when available.

The second target area was located to the east and north of the Rowan Mine main shaft. Four holes drilled in 2010 intersected the high grade gold zones within the Rowan Main Zones structural corridor (see news release of October 21, 2010). In addition to intersecting high grade mineralization within volcanic sequences, on trend with existing zones, these holes also intersected high grade mineralization within the sedimentary sequence. This Calc-Silicate Zone (CS Zone) was believed to be a new parallel zone to the north of the known vein zones.

The 1,694 m 2011 drilling program consisted of two scissor pairs of holes, with 90 m stepouts to the east and 50 m to the north of the 2010 drill locations. The main result is the discovery of an additional breccia corridor which was intersected in all 4 holes, with striking lithological and structural similarities with Rowan-NT Zone breccias. Assays from these 4 holes are pending analysis by the Company and will be released when available.

Robert Seitz, Hy Lake's President notes: "Although the possible existence of an additional breccia corridor, analogous to Rowan-NT Zone, on the northern limb of the Rowan Lake "fold nose" was an important part of the geological model developed by Hy Lake, we were pleased to get confirmation so early in our testing of this theory. The existence of a new east-west limb of breccia mineralization at Rowan Lake will have a significant impact on Hy Lake Gold's future potential resource as we continue to test the continuity of known mineralized zones at the Company's Mount Jamie Mine, Rowan Lake Mine and Red Summit Mine properties. Confidence in our exploration model continues to grow as we discover new zones of gold mineralization along our nearly 7-kilometre strike length of the west Red Lake Mine Trend."

Hy Lake is planning expanded drilling to further delineate this new breccias zone both to the west, toward the Mount Jamie Mine property, and to the east, toward the Red Summit Mine property. Details of Hy Lake Gold's follow-up drilling programs will be announced when planning is complete.

Vadim Galkin, PhD, P.Geo. who is a qualified person under the definition of National Instrument 43-101 has reviewed the technical information contained in this press release. Core samples from the Rowan program were cut in half using a diamond cutting saw and will be sent to ActLabs, an accredited mineral analysis laboratory in Red Lake, Ontario, for preparation and analysis utilizing both fire assay and screen metallic methods. Certified gold reference standards, blanks and field duplicates have been routinely inserted into the sample stream as part of Hy Lake Gold's quality control/quality assurance program.

Michael Schweinberger, M.Sc. managed field operations for this phase of the 2011exploration program. As project geologist, Michael supervised drilling operations, logged and sampled drill core and managed the core cutting. Drilling operations at the Rowan Lake Mine property were carried out by Chibougamau Diamond Drilling Ltd. of Chibougamau, Quebec.


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