King's Bay Gold Corporation receives the Third Anniversary Earn-In Option Agreement payment for the Headway Project in Red Lake, Ontario

Winnipeg, Manitoba - October 2nd, 2012 - King's Bay Gold Corporation (TSX.V: KBG) is pleased to report that it has received the third anniversary earn-in option agreement payment from Mega Precious Metals Inc. (TSX.V: MGP) ("Mega"). The third anniversary payment consisted of $40,000 in cash and 67,500 common shares of Mega. King's Bay Gold Corporation now holds an aggregate total of 382,500 common shares of Mega from the initial, 1st anniversary, 2nd anniversary and 3rd anniversary earn-in distributions. The final payment to King's Bay Gold of 3,600,000 common shares of Mega is due on or before Nov. 30th, 2012.

Kyle Picard, President and CEO of King's Bay Gold Corporation recently stated: "These final earn-in option payments from Mega for the Headway Project will put King's Bay Gold in a great position going forward. We have great projects, growing assets and a talented management team. We've made the right decisions to get us here and look forward to aggressively building shareholder value in the near future."

The Headway Group of Patented Claims Property is comprised of 7 claims units for approximately 320 acres and is located in Dome and Balmer Townships near the Town of Red Lake, Ontario. The property lies approximately 8 kilometres from the Town of Red Lake, and approximately 1.5 kilometres south of the Town of Balmertown, Ontario where Goldcorp's Red Lake Mines are located. The claim units are transected by the highway that runs between Red Lake and Balmertown.

Mega Precious Metals Inc. has an option to acquire a 100% interest in the Headway Project in Red Lake, Ontario subject to one final share issuance obligation that began in October 2009. Mega is the Operator for this project and updates are available on the home page of their website at www.megapmi.com. Detailed geological information on the Headway project, along with maps, diagrams and pictures can be found at: http://www.megapmi.com/headway_property .


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About King's Bay Gold

King's Bay Gold Corporation is an active Canadian mineral exploration and development company with mineral exploration projects located in two of Canada's main gold camps - Red Lake, ON and Rainy River, ON.

KBG Shares Outstanding: 97,676,913


King's Bay Gold Corporation

Kyle Picard
President & CEO and Corporate Secretary



(204) 253-4653
info@kingsbaygold.com
www.kingsbaygold.com

This news release includes certain forward-looking statements concerning the future performance of King's Bay Gold Corporation's business, its operations and its financial performance and condition, as well as management's objectives, strategies, beliefs and intentions. The Company does not intend, and does not assume any obligation, to update these forward-looking statements. Forward-looking statements are frequently identified by such words as "may", "plan", "expect", "anticipate", "estimate", "intend" and similar words referring to future events and results. These forward-looking statements represent management's best judgment based on current facts and assumptions that management considers reasonable. The Company makes no representation that reasonable business people in possession of the same information would reach the same conclusions. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, competitive risks and the availability of financing and as described in more detail in the Company's recent securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward looking-statements and readers are cautioned against placing undue reliance thereon.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.