Menary Townships

The property is located in the Townships of Menary, Claxton, McClarty and Senn in the Kenora Mining Division of north-western Ontario. The claim units are located approximately 20 kilometres southeast of the Town of Nestor Falls, Ontario and can be accessed along Road 404, east of Highway 71 which runs between Kenora and Fort Frances, Ontario. The project is located roughly fifteen kilometers northeast of the Richardson Township Project owned by Rainy River Resources Limited (TSX.V: RR) and within 12 kilometres of the new discovery by Bayfield Ventures Corp. (TSX.V: BYV). The property is adjacent to and along strike to the Rainy River Resources Limited drilling that has been conducted on their Off Lake Gold Project.

The property consists of the original core group of 4 un-patented mining claims acquired by option agreement in January 2010; an additional acquisition of 6 un-patented mining claims by option agreement in August 2010; and the staking of 6 un-patented mining claims in October 2011. The Menary Project now consists of 16 claims for approximately 4,320 acres (or approximately 1,750 hectares) in a single contiguous land package.

Gold

Three un-patented mineral claims and one patented mining claim (K1079876 (P), 3014054, 4205640, and 4247110) were optioned from William McNerney and Western Troy Capital Resources Inc. on January 20th, 2010 (see the news release of that date as filed on www.sedar.com ), whereas the six un-patented mineral claims (4256392 and 4256394 to 4256398 for 32 claim units) were subsequently optioned from a local prospector Luc Gagnon on August 26th, 2010 (see the news release of that date as filed on www.sedar.com ). Six claims (4257383 to 4257388) totalling 44 units covering an additional 1,760 acres were staked in October 2011 to the north and northeast of the Company’s existing land package after discovering a new gold bearing shear zone at the Galbraith “A” occurrence. These staked claims cover the remaining available geological contact between the Sabaskong granitic batholith and the open ground over the adjacent greenstones (see the news release of October 26th, 2011 as filed on www.sedar.com ).

100 % King’s Bay Gold Corporation subject to annual payments of stock and cash to the various parties identified above and NSRs on future gold production for all of the optioned claims only.

King’s Bay Gold Corporation

Russell Crosby M.Sc., P.Geo.

Regional geology for the Menary Property is characterized by the volcanogenic package within the Uchi-Rainy River Belt that has played host to a number of recent gold discoveries, notably the Rainy River Resources of 5 million ounces of gold, the Bayfield Resources drill findings, the Coventry / Cameron Lake deposit which lie along this mineralized trend as it transects the northwest trending Pipestone Fault structure.

Work Completed in 2010

King’s Bay Gold drilled 16 holes for approximately 1,917 metres of BQ core over the Wagg Occurrence in the summer and fall of 2010. The results received from the first 16 holes can be found in the Company’s news releases dated September 27th, 2010 for 6 holes numbered MIN 10-01 to MIN 10-06, December 6th, 2010 for 4 holes numbered MIN 10-07 to MIN 10-10, January 11th, 2011 for 1 hole numbered MIN 10-11, and March 16th, 2011 for 5 holes numbered MIN 10-12 to 10-16. All of these news releases can be found on www.sedar.com . The Company also cut grids over all but three of the westerly claims for a total of roughly 29 kilometres and completed VLF-EM and Magnetic surveys in 2010. Results from the first 16 holes included:

True widths are not known.

0.2 metres at 141.53 g/t gold from 64.1 metres (64.1 to 64.3 metres)

0.9 metres at 57.62 g/t gold from 66.9 metres (66.9 to 67.8 metres)

0.5 metres at 39.35 g/t gold from 14.8 metres (14.8 to 15.3 metres)

1.2 metres at 34.63 g/t gold from 11.5 metres (11.5 to 12.7 metres)

1.7 metres at 18.66 g/t gold from 13.6 metres (13.6 to 15.3 metres)

1.2 metres at 8.31 g/t gold from 45.0 metres (45.0 to 46.2 metres)

Work Completed or to be Completed in 2011

King’s Bay Gold announced on September 27th, 2011 further high-grade gold intersections within an approximate 100m wide x 200m long x 100m deep geologically productive area at the Wagg Gold Occurrence on the Menary Project (see the news release of that date as filed on www.sedar.com ). Since the late summer of 2010, the Company had drilled, to that point in time, a total of 29 holes for 3,484.7 metres of BQ core on this geologically productive area. During its 2011 summer field season, the Company drilled 13 of those 29 holes for 1,567.8 metres of BQ core. The results from these drill-holes were significant in that they intersected anomalous to significant gold mineralization over core length intervals from 0.3m to 11.0m and remain open at depth and in all directions.

All the drilling and field work on this project performed since the start of the summer of 2011 has been supervised by the Company’s on-site geologist, Mr. Russell Crosby, M.Sc., P.Geo., acting as the Qualified Person (QP) in compliance with National Instrument 43-101.

Summer 2011 Drill Results

Given the positive results obtained from MIN 10-01 to MIN 10-16 at the Wagg Gold Occurrence during the spring and fall of 2010, the Company announced in a news release dated May 11th, 2011 that it had mobilized its geologist and drilling contractor to the Menary Property. Drilling occurred throughout most of the summer and Hole MIN 11-29 was presently underway at the time of this September 27th, 2011 news release. Work during the summer also included extensive prospecting and mapping program of outcrops over the entire property. Results for holes MIN 11-17 to MIN 11-26 follow below. True widths are not known at this point in time due to the complex nature of the veins and structural deformation within the zone of interest.

Drill Hole	Dip	Grade (g/t)	Intercept Length	From (m)	To (m)
MIN-11-17	-45	0.45 g/t	over 11.0m	54.5	65.5
incl		1.41 g/t	over 0.3m	57.0	57.3
MIN-11-18	-45	16.99 g/t	over 6.3m	75.4	81.7
incl		63.29 g/t	over 1.7m	77.5	79.2
MIN-11-19	-45	0.14 g/t	over 0.9m	67.0	67.9
MIN-11-20	-45	1.28 g/t	over 0.3m	40.8	41.1
MIN-11-21	-45	12.40 g/t	over 4.8m	0	4.8
MIN-11-22	-45	5.95 g/t	over 1.9m	10.8	12.7
incl		57.27 g/t	over 0.2m	12.2	12.4
		1.9 g/t	over 0.4m	41.3	41.7
MIN-11-23	-45	0.39 g/t	over 0.6m	15.5	16.1
MIN-11-24	-45	No significant assays
MIN-11-25	-45	No significant assays
MIN-11-26	-45	0.73 g/t	over 0.6m	12.6	13.2

The above analytical work has been done at Accurassay Laboratories Limited, an accredited laboratory facility in Thunder Bay, Ontario using the fire assay method. Half of the drill cores were sent in for analysis, along with accompanying standards, duplicates and blanks. The remaining cores are being stored and archived for future testing or verification.

Results from Holes MIN 11-27 to MIN 11-29, as completed or soon to be completed during 2011, will be released once the assay results are received and reviewed. At the time of the September 27th, 2011 news release, the Company had started drilling the Galbraith “A” occurrence. This occurrence is located 900 metres north of the Wagg occurrence. If drilling at the Galbraith “A” is successful, the Company may then look at doing some additional drilling in-between these two occurrences to determine if continuity exists between them. At Galbraith “A”, historical grab samples collected by prospectors employed by Western Troy yielded 2.42 Au g/t and 94.48 Au g/t. Grab samples collected by King’s Bay Gold personnel in August 2011 at the 4’ x 4’ x 3’ Western Troy blasted pit at Galbraith “A” yielded 8.96 Au g/t and 15.78 Au g/t.

Kyle Picard, King’s Bay Gold’s President & CEO stated at the time “The information that we’ve received to date from our drilling activities indicates that the Menary may be amenable to low grade bulk tonnage open pit mining. Before that can happen, additional drilling, exploration and development work, economic analysis and research on processing methodologies and costs will be needed to determine if the zones identified to date will be economically amenable to open pit mining.”

New Shear Zone

On October 26th, 2011 King’s Bay Gold announced in a news release that it had increased its land position at its Menary Project by staking 6 mining claims totalling 44 units covering an additional 1,760 acres to the north and northeast of the Company’s existing land package. These new claims were staked after discovering a new gold bearing shear zone at the Galbraith “A” occurrence. They cover the remaining available geological contact between the Sabaskong granitic batholith and the open ground over the adjacent greenstones.

A total of 34 grab samples were taken at various points along this newly discovered shear system with a width of up to 4 metres and a length of over 150 metres long on surface. The assay results obtained from wall rock and quartz vein grab samples ranged from a low of

In the new shear zone the fine-grained, sugary texture of the quartz and the intermittent hematitic red staining are similar to that which occurs in the quartz veins on surface at the Wagg gold occurrence approximately 1 km south of the Galbraith “A” occurrence.

Washing, mapping, channel sampling and drilling have been commissioned on this new zone, as well as excavator stripping of additional quartz showings nearby. Assays from channel sampling and drilling to be undertaken will be released once they have been received and reviewed by the company’s on-site geologist, Mr. Russell Crosby, M.Sc., P.Geo., who is acting as the Qualified Person (QP) for this project in compliance with National Instrument 43-101.

James Rogers, King’s Bay Gold’s Chairman, stated at the time: “This discovery of another vein system with mineralization and alteration that look identical to the Wagg showing is very exciting. I am optimistic that King’s Bay Gold’s systematic approach to field exploration may uncover new economic opportunities for discovery”.

The 34 grab samples from the newly discovered shear zone were processed and analyzed by Accurassay Laboratories Limited located in Thunder Bay, Ontario. Accurassay Laboratories is an ISO-Certified laboratory that performed the gold fire assays with AAS finish following assay code ALFA1 using 30 grams of rock after it has been crushed and powdered.

Tailings Pond

In the 1990’s, Western Troy Capital Resources Inc. processed approximately 1,000 tons of quartz vein material through a small mill erected at the Wagg gold showing on the Menary gold property. They reported an overall historical grade of 10.73 g/t at that time from the approximately 1,000 tons of material that was processed. Tailings from the mill were collected in a small pond nearby. This historical data has not been verified. Source: Ontario Ministry of Northern Development and Mines Assessment Files, verified by Russell Crosby, M.Sc., P.Geo.

During the summer of 2011, King’s Bay Gold collected 46 samples from part of this tailings pond to determine what, if any, gold may be present in these tailings. Assay results obtained to date range from a low of 1.00 g/t to over 116.20 g/t and have an average of 5.95 g/t. Additional sampling is planned to assess how much free gold is in the tailings pond.

The 46 samples taken from the tailings pond were also processed and analyzed by Accurassay Laboratories Limited in Thunder Bay, Ontario using 30 grams of sample, the fire assay method, and an AAS finish following Accurassay Assay procedure code ALFA1.