[Marinir] {Disarmed} Otis (TSX-V: OOO) Reports 520, 000 Indicated at Kilgore

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http://www.otisgold.com/ 

OTIS RELEASES KILGORE NI 43-101 RESOURCE ESTIMATE 

Otis Gold Corp. (TSX-V: OOO 

http://www.stockwatch.com/Quote/Detail.aspx?action=go&symbol=OOO&region=C&lookup=symbol&snapshot=default 

)  is pleased to announce the release of an updated National Instrument 
43-101 Resource Estimate, effective July 31, 2012, for its 100%-owned 
Kilgore Gold Deposit ("Kilgore") located in Clark County, Idaho. This is 
the first resource estimate prepared by Otis since acquiring the 
property in the fall of 2008. The updated resource estimate includes all 
historical drilling, plus an additional 92 HQ core holes (totaling 
19,630 m) drilled by Otis between 2008 through 2011. This updated 
resource estimate supersedes the original NI 43-101Resource Estimate 
prepared by Rayner and Associates and Van Brunt in 2002 ("2002 
Estimate"; see Otis Gold March 2, 2009 news release for details of 
estimate). 

Highlights 

An Indicated Resource of 520,000 oz Au in 27.35 million tonnes at a 
grade of 0.59 g/t Au; this new Indicated Resource represents an increase 
of 138% in the number of ounces and 328% in the number of tonnes over 
the 2002 Estimate.  

An Inferred Resource of 300,000 oz Au in 20.23 million tonnes at a grade 
of 0.46 g/t Au; this new Inferred Resource represents an increase of 12% 
in the number of ounces and 131% in the number of tonnes over the 2002 
Estimate. 

The results from Otis' drilling programs have moved previously defined 
Inferred resources into the Indicated category and have added new 
resources to both the Indicated and Inferred categories. 

Table 1. Kilgore Project - Kilgore Gold Deposit Resource Statement* 

Resource 

Category Tonnes 

(000's) Gold Grade 

(g/tonne) Gold Troy 

Ounces 

Indicated 27,352 0.59 520,000 

Inferred 20,230 0.46 300,000 

Notes* 

1 Mineral Resources are at a gold cut-off grade of 0.24 g/t. 

2 Mineral Resource tonnage and contained metal are rounded off to 
reflect the precision of the estimate, thus metal quantity varies 
slightly from the product of tonnes and grade. 

3 Contained gold ounces are in-situ, and include metallurgical recovery 
losses. Otis' President and CEO Craig Lindsay states, "The significantly 
expanded Kilgore resource estimate is an endorsement of the hard work of 
Otis' geologic staff and careful geologic modeling. The markedly 
increased size of this resource provides Otis with a solid foundation 
upon which to build additional resources through planned drilling in 
areas where open-ended mineralization of significant thickness exists. 
Further, the newly expanded size of the deposit, its overall shallow 
depth and excellent potential for further growth, coupled with its 
extremely attractive metallurgy, are all positive attributes that 
support the potential economic viability of the deposit." 

Mr. Lindsay adds, "The Kilgore Gold Deposit is the foundation of a very 
strong gold company. Our geologic team has already begun designing 
programs to both expand the Deposit and test several additional high 
priority targets on the property. Otis plans to increase the number of 
targets under evaluation and aggressively search for new deposits with 
the ultimate goal of developing the property into a large-scale gold 
district." 

Resource Modeling 

Mineral Resources are estimated by ordinary kriging and inverse distance 
methods using 3-D Micromine block modeling software in 6-by-6-by-3 m 
(20-by-20-by-10 ft) blocks. Grade estimates are based on capped, 3 m (10 
ft) composited assay data. Gold capping levels range between 0 g/t Au 
and 25 g/t Au in five different estimation domains. Blocks are 
considered for Indicated Mineral Resources if at least two drill holes 
and three composites in at least two quadrants are found within 
first-pass search ellipses with dimensions up to a maximum of 75 m for 
the kriged domains and 135 m for the inverse distance-estimated domains, 
and if they fall within an optimized pit shell. All other interpolated 
blocks are classified as Inferred Mineral Resource. 

The Company is preparing a National Instrument 43-101 technical report 
in respect to the updated resource estimate discussed in this news 
release and will file the report on SEDAR within 45 days of the date 
this news release is disseminated. 

Donald E. Cameron M.S., is an independent Qualified Person as defined by 
National Instrument Policy 43-101, and has prepared, verified, and 
reviewed the information that forms the basis of this press release. Mr. 
Cameron is a Registered Member (#4018521RM) of the Society of Mining 
Engineers and a QP Member (#01434QP) of the Mining and Metallurgical 
Society of America, and is responsible for the technical information 
contained in this news release. Verification included a review and 
validation of the applicable assay databases, reviews of assay 
certificates, duplicate core sampling, and a site visit. 

Mineral resources are not mineral reserves and do not have a 
demonstrated economic viability. Environmental, permitting, legal, 
taxation, socio-political or other relevant issues may materially affect 
the estimate of mineral resources. The quantity and grade of reported 
Inferred Resources in this estimation is uncertain in nature. There has 
been insufficient exploration to define these Inferred Resources as 
Indicated or Measured Mineral Resources, and it is uncertain if further 
exploration will result in upgrading them to an Indicated or Measured 
Mineral Resource category. The mineral resources reported in this news 
release were estimated using current Canadian Institute of Mining 
Metallurgy and Petroleum ("CIM") standards, definitions and guidelines. 

Operational Update 

The U.S. Forest Service, Caribou-Targhee National Forest, issued a 
permit to the Company on May 30, 2012 to conduct a 14- to 20-hole 
program consisting of 4,000 metres of HQ core drilling. Furthermore, 
Otis is in the process of performing a Cultural Survey and preparing a 
Plan of Operation to build 1,350 metres of new roads into the "North 
Area." This area is defined by seven significant gold-in-soil anomalies 
and several open-ended mineralized holes with +100-metre-thick 
intercepts averaging up to 0.89 g/t Au (see Otis news release dated 
October 6, 2011). 

Otis has also received permits to drill on six sites at the Gold Ridge 
target located 1 km northwest of, and on strike with, the Kilgore Gold 
Deposit. The target's dimensions are roughly 1 km x 1.2 km, with the 
area underlain by a rhyolite dome in contact with lithic tuff host rock 
and dike material, the same setting as that of the Kilgore Gold Deposit. 
The target is defined by the intersection and overlap of numerous 
important regional and local structures, soils anomalous in arsenic, 
antimony and gold, and significantly large IP and resistivity low 
geophysical anomalies. This target has never been drilled and will 
require helicopter support, as no drill access roads are currently 
available in the area. 

Exploration and drill programs will be initiated based on market 
conditions and the Company's ability to raise additional capital at a 
reasonable price. 

About the Kilgore Gold Deposit 

The caldera-related Kilgore Gold Deposit is located within the Company's 
Kilgore Gold Project, Clark County, Idaho. The Kilgore Gold Project is 
5,130 acres in size, is 100% owned by Otis and is subject to no 
underlying royalties. 

The Kilgore Gold Deposit constitutes the continuous and contiguous 
Prospect Ridge, Mine Ridge and North Target areas, all referred to in 
prior Company news releases. The Kilgore Gold Deposit is a zoned 
low-sulfidation quartz-adularia epithermal hot-spring system hosted in 
volcanic rocks of Late Miocene age. Gold mineralization is of the 
classic disseminated, bulk-tonnage type similar to that comprising the 
classic and world-class size volcanic-hosted gold deposits at Round 
Mountain, Nevada and McDonald Meadows, Montana. K-Ar age determination 
on hydrothermal adularia tentatively dates mineralization at 5.3 Ma 
(Late Miocene). Gold mineralization is mostly controlled by a major 
northwest-trending structural zone and is closely associated with a 
series or set of northwest-trending, high-angle, en echelon rhyolitic to 
intermediate dikes and dike swarms. Additional host rock enclosing the 
dikes and sills and serving to contain a major portion of the deposit 
mineralization is a porous and permeable, ashy and rhyolitic lithic tuff 
unit. Further, material containing a portion of the mineralization 
comprises basement sandstone and siltstone of the Aspen Formation of 
Cretaceous age. 

Conference Call 

A conference call to discuss Kilgore and the resource estimate will be 
held at 11:00 AM PDT (2:00 pm EST) on July 31, 2012. Investors are 
invited to participate by connecting to the call using one of the 
following dial-in numbers. 

Dial-in number: 

North American Toll- Free: 1-866-782-8903 

Local / International: 647-426-1845 

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. 

Forward Looking Statement 

This release and related documents may include "forward-looking 
statements" including, but not limited to, statements related to the 
interpretation of drilling results and potential mineralization, future 
exploration work at the Kilgore Gold Project and the expected results of 
this work. Forward-looking statements are statements that are not 
historical fact and are subject to a variety of risks and uncertainties 
which could cause actual events to differ materially from those 
reflected in the forward-looking statements including fluctuations in 
the price of gold, cost of mining, inability to complete drill programs 
on time and on budget, and future financing ability. Words such as 
"believes," "plans," "anticipates," "expects," "estimates" and similar 
expressions should also be considered to be forward-looking statements. 
There are a number of important factors that could cause actual results 
or events to differ materially from those indicated by such 
forward-looking statements, including, but not limited to: uncertainties 
involving interpretation of drilling results, environmental matters, 
lack of ability to obtain required permitting, equipment breakdown or 
disruptions, and the other factors described in Otis' most recent Annual 
Report. 

ON BEHALF OF THE BOARD 

"Craig T. Lindsay" 

President and CEO 

For additional information, please contact: 

Craig Lindsay 

Tel: 604.683.2507 

E-mail: craig at otisgold.com 

THE TSX VENTURE EXCHANGE HAS NEITHER APPROVED OR DISAPPROVED OF THE 
CONTENTS HEREIN. 

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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