Otis Provides Corporate Update

Otis Gold Corp. ("Otis" or the "Company") (TSX VENTURE:OOO)(OTCQX:OGLDF) is
pleased to provide the following update to its shareholders.


Oakley Gold Project Joint Venture

The Company is pleased to announce that its proposed joint venture allowing
Lateral Gold Corp. ("Lateral") to earn up to a 100% interest in the Oakley Gold
Project ("Oakley) over a 7.5 year period (see Otis News Release dated January
10, 2013) has been approved by the TSX-V. The initial cash and share payments
have been received by the Company. To effect this joint venture, a separate
agreement was signed with the minority owners of Oakley allowing Otis to
increase its interest from 70% to 100% in exchange for two cash payments (the
first which has been made and increases Otis' interest immediately to 80%).
Additionally, a minor adjustment was made to the joint venture agreement in
connection with future cash payments to be received upon Lateral exercise its
right to move from an 80% interest to a 100% interest in Oakley.


Kilgore Gold Project

The Company has submitted a Plan of Operations to the Caribou-Targhee National
Forest to build approximately 1,550 meters of roads into the North Target Area,
located immediately adjacent to the existing Kilgore Gold Deposit and in an area
that has recently achieved extremely strong drilling results (82.3 metres (m) of
0.95 grams per tonne gold (g/t Au) in hole 12 OKR-291, 121.9 m of 1.04 g/t Au,
that includes 45.7 m of 1.52 g/t Au, in hole 12 OKR-292, and 83.8 m of 1.12 g/t
Au, that includes 30.5 m of 2.10 g/t Au, in hole 12 OKR-294 - see Otis News
Release date January 17, 2013). Upon receipt of the permit, four roads will be
constructed in advance of a planned drill program.


The Company has been engaging in wide-ranging discussions with potential
investors and strategic partners in connection with financing the ongoing
development activities at Kilgore, including drilling, the initiation of a
Preliminary Economic Assessment, environmental baseline studies and permitting
activities. The current state of capital markets in the junior mining sector has
created a challenging financing market. As a result, Company management has
implemented a number of cost-cutting measures to reduce its monthly cash burn,
while at the same time dedicating appropriate resources to the continued
development of Kilgore.


States Otis President & CEO Craig Lindsay: "We are very mindful of the need to
control costs, continue funding Kilgore and minimize any potential dilution to
existing shareholders. We remain very excited about Kilgore's development
potential, and are working diligently to advance the project. Given that we own
100% of Kilgore, the project is subject to no underlying royalties, and property
maintenance costs are only $36,000 per year for our entire property portfolio,
we are in a very good position to weather the ongoing downturn in junior
financial markets."


About the Kilgore Gold Deposit

The Kilgore Gold Deposit contains a NI 43-101 Indicated Resource of 520,000 oz
Au in 27.4 million tonnes at a grade of 0.59 g/t Au and an Inferred Resource of
300,000 oz Au in 20.2 million tonnes at a grade of 0.46 g/t Au. The 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, the
Northwest Fault, 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, sedimentary host-rock material
containing a portion of the mineralization comprises basement sandstone and
siltstone of the Aspen Formation of Cretaceous age.


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 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

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
604.683.2507
craig@otisgold.com
www.otisgold.com
Otis Gold (TSXV:OOO)
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