OOO Otis Gold Corp

Otis Gold Corp. ("Otis" or "the Company") (TSX VENTURE:OOO)(OTCQX:OGLDF) is
pleased to announce that it has signed a Letter of Intent (the "Agreement") to
Joint Venture its Oakley Project ("Oakley") with Lateral Gold Corp. ("Lateral").
Oakley is a high-potential, classic epithermal hot spring-type gold project that
is host to an existing NI 43-101 compliant Inferred resource of 235,000 ounces
Au at a grade of 0.55 gpt. The Agreement allows Lateral to earn up to an initial
70% interest in Oakley in exchange for a combination of cash, property
expenditures and Lateral shares as follows:


Lateral shall pay a total of $915,000 to Otis according to the following schedule:



i.  $15,000 upon execution of this Agreement (paid); 
ii. $35,000 as of the date Lateral receives the acceptance of the TSX
    Venture Exchange (the "Exchange") to the Option (the "Acceptance Date");
iii.$115,000 on or before the first anniversary of the Acceptance Date; 
iv. $250,000 on or before the second anniversary of the Acceptance Date; 
v.  $250,000 on or before the third anniversary of the Acceptance Date; and 
vi. $250,000 on or before the fourth anniversary of the Acceptance Date.



Additionally, Lateral shall incur a total of $5,700,000 of work expenditures on
the Project subject to the following minimum obligations:




i.  a minimum of $300,000 shall be incurred within 12 months following the
    Acceptance Date with at least 50% to be spent directly on drilling; 
ii. a further minimum of $700,000 shall be incurred within 24 months
    following the Acceptance Date; 
iii.a further minimum of $1,300,000 shall be incurred within 36 months
    following the Acceptance Date; 
iv. a further minimum of $1,500,000 shall be incurred within 48 months of
    the Acceptance Date, and 
v.  a further minimum of $1,900,000 shall be incurred within 60 months of
    the Acceptance Date.



Finally, Lateral shall issue to Otis a total of 4,950,000 common shares in the
capital of Lateral according to the following schedule:




i.  200,000 shares on the Acceptance Date; 
ii. a further 250,000 shares on or before the first anniversary of the
    Acceptance Date; 
iii.a further 500,000 shares on or before the second anniversary of the
    Acceptance Date; 
iv. a further 1,500,000 shares on or before the third anniversary of the
    Acceptance Date; and 
v.  a further 2,500,000 shares on or before the fourth anniversary of the
    Acceptance Date.



The Agreement also requires that Lateral shall provide NI 43-101 compliant
Resource Estimates on or before both the 3rd and 4th anniversary dates and a
Preliminary Economic Assessment by the 5th anniversary date, at which time the
70% Interest will have been earned.


Upon Lateral earning into a 70% interest, the Agreement provides Lateral with an
additional option to earn a further 10% in exchange for $1,500,000 in cash (with
$500,000 to be paid within 90 days of earning its 70% interest and a further
$1,000,000 to be paid within 24 months of earnings its 70% interest), and
2,000,000 Lateral common shares (with 500,000 shares to be issued within 90 days
of earning its 70% interest and a further 1,500,000 shares to be issued within
24 months of earnings its 70% interest). Upon earning an 80% interest, Lateral
has the right to earn a final 20%, for a total interest of 100%, in exchange for
the issuance of an additional 5,000,000 Lateral common shares and a cash payment
based on a multiple of any NI 43-101 Inferred gold ounces contained in a NI
43-101 Report to be filed with the Exchange in conjunction with its approval of
this Agreement, with both to made within 6 months of achieving the 80% interest.
Additionally, an NSR of 2.5% will be issued in favour of Otis in connection with
any lands subject to this agreement that are not already encumbered by royalty
agreements.


States Otis President & CEO Craig Lindsay: "We are very excited to have Lateral
Gold as a partner to assist us in moving the Oakley Project forward. Otis stands
to be rewarded in the form of both cash and a significant potential shareholding
in Lateral should the Oakley Project achieve the development targets that we
envision for it."


Otis has an existing 70% interest in Oakley, which is being increased to 100%
through a separate transaction with its joint venture partners, the closing of
which is a condition precedent of this Agreement. As precedent for closing a
definitive agreement by February 15, 2013, both the Company and Lateral will
negotiate in good faith the final terms of a Definitive Agreement, which is
subject to several terms and conditions including acceptance by the TSX-Venture
Exchange. All currencies referenced are denominated in Canadian dollars.


About Lateral

Lateral is a gold exploration and development company listed on the Exchange and
trading under the symbol "LTG". Lateral is led by an experienced team that
includes Mr. Patrick Abraham, an experienced financier and businessman, and Mr.
Casey Danielson, a career geologist with over 30 years' experience in mineral
exploration and evaluation.


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 

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.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Otis Gold Corp.
Craig Lindsay
President and CEO
604.218.0550
craig@otisgold.com
www.otisgold.com

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