Exploration Activities and Joint Venture to

Generate Future Growth Otis Gold Corp. (“Otis Gold” or “the Company”) is an advanced-stage gold exploration

company that is well-positioned to grow by exploiting its multi-million ounce potential. The

Company has an acquisitive history and has been opportunistic in buying early/intermediate

stage projects, especially during the global downturn of 2008-09. The Company has a total

of four projects: Kilgore Gold Project (100% Working Interest -WI), Oakley Project (70%

WI), Gold Bug Project (100% WI) and Hai Project (100% WI) located in the mining-friendly

jurisdiction of Idaho, USA with a total resource base of 755,000 ounces (oz) of Indicated

Gold and 300,000 oz of Inferred Gold.

The Company’s primary focus is the Kilgore Project which is at an advanced stage of

exploration and is expected to enter production potentially as early as 2017. Since Kilgore’s

acquisition in 2008, Otis Gold has drilled about 20,000 meters at the deposit and has a

National Instrument (NI) 43-101 compliant resource of 520,000 oz Au Indicated and

300,000 oz Au Inferred.

The Oakley Deposit is an intermediate stage project with an Indicated Gold resource of

235,000 oz. Currently, the Company is looking at acquiring the balance 30% WI in Oakley

Project through their existing Joint Venture (JV). After acquiring the entire 100% WI, they

plan to form a separate JV with Lateral Gold Corp. to secure funding of around C$6.6

million by offering them a 70% WI in the Oakley Project. Currently, the Company has signed

a Letter of Intent (LOI) and plans to enter into a definitive agreement with Lateral Gold Corp

by 15th

February 2013.

Sizeable progress on the Kilgore Project, funding support for the Oakley Project and a

bullish outlook on gold augur well for the Company. We believe that the management and

technical team have the experience and capability to steer the Kilgore Project into

commercial operations.

Investment Arguments

Encouraging Prospects for the Flagship Kilgore Project:

Strong Potential for Expansion: Geological studies undertaken by Otis Gold have

established that the Kilgore deposit (Mine Ridge Area, Prospect Ridge Area and North

Target Area) has significant potential to exceed 1 million oz of gold, while other Kilgore

Target Areas such as Gold Ridge and Dog Bone Ridge have multi-million ounce

potential.

Sizable Drilling Goal for 2013: Approximately 7,000 meters of drilling are being

planned for 2013 at the Kilgore deposit’s North Target area and additional drilling is

expected at Prospect Ridge. The Company also plans to initiate a scoping study to

evaluate project economics and also conduct 12 month environmental baseline studies.

Further, Otis Gold has received permits to drill on six sites at the Gold Ridge target and

initial testing is expected to be undertaken in 2014.

Production Outlook: Otis Gold’s flagship Kilgore Project is expected to commence

production as early as 2017 and is estimated to produce around 50,000 oz of Au per

year.

Positive Results: Column Leach tests conducted in 2011 showed recovery rate of

85% - 90% within 30 days at 1.5 inch and .5 inch crushed material. This recovery rate

is higher than comparable mines; the Briggs Mine (owned by Atna Resources) has a

Price (C$): (Jan 24, 2013) 0.145

Beta: 1.06

Price/Book Ratio: 0.46

Debt/Equity Ratio: 0.00

Listed Exchange: TSX.V

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OOO TSX Composite (RHS) *Company listed on the TSX.V and hence is compared to

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Recent News

01/17/2013: Otis Gold drills 121.9 Meters @

1.04gpt Au And 83.8 Meters @1.12gpt Au at

Kilgore North Target Area.

1/10/2013: Otis Gold signs letter of intent to

JV Oakley Project with Lateral Gold Corp.

Lateral to earn up to an initial 70% interest.

10/1/2012: Otis Gold appoints Dr. Roger

Norwich as Director. He was the founding

Director of formerly TSX-V listed Mexican

Silver Mines Ltd.

6/5/2012: Otis Gold announces the receipt

of additional positive column leach gold

recoveries from coarse-crush bulk samples

at the Kilgore Gold Project.

4/13/2012: Otis Gold closes 2nd tranche of

non-brokered private placement of 250,000

units @C$0.20 amounting to C$50,000.

3/27/2012: Otis Gold closes 1st tranche of

non-brokered private placement of 7,042,500

units @C$0.20 amounting to C$1,408,500.

2/22/2012: Otis increases land position at

Kilgore by 58%. Otis acquired 1,880 acres of

land making the land package 5,130 acres.

Shares in Issue

50.2 M

Market Cap

(C$ M) 7.28

52 Week (High): C$0.250

52 Week (Low): C$0.055

Otis Gold Corp.

(Tickers: TSX-V: OOO, OTC QX: OGLDF)

January 25, 2013

www.RBMILESTONE.com

Equity Research and Market Intelligence

2

80-85% recovery rate at .25 inch minus crushed material i and the Round Mountain

Gold Mine (a Kinross Gold & Barrick Gold JV) has a 85% recovery rate at .75 inch. ii

Potential for Additional Drilling at North Target Area: In addition, the new drilling

results of six holes at the North Target portion of the Kilgore Project have helped in

defining and extending the deposit, indicating a scope for expansion of the deposit

through additional drilling.

Secured Funding through a Possible JV: In January 2013, Otis Gold has signed a

letter of Intent for its Oakley Project with Lateral Gold Corp. As per the agreement,

Lateral Gold Corp. can earn an initial 70% interest in the project with options to acquire

the remaining 30% interest in the future. Through this JV, Otis Gold will benefit in terms

of cash (C$0.9 million), property expenditures (C$5.7 million) and Lateral shares (4.9

million shares) and will support the Company in moving the project forward to

development stage.

Experienced Technical Team and Strong Management: Otis Gold’s exploration and

development team has considerable technical and financial experience. The team

primarily comprises of members from Echo Bay Mines US exploration team, which had

conducted sizable studies for exploring gold resource at Kilgore in the 1990s. The

management team also has extensive experience in Investment Banking, Corporate

Finance and Business Development.

Favorable Outlook for Gold Demand and Price: Demand for gold has been

constantly rising since the economic recession in 2008-09 on the back of rising

consumption demand from emerging economies such as India and China, coupled with

gold purchases by Central Banks across the globe. Growing uncertainty arising from

the US budget deficit and EU debt is expected to fuel investments in gold due to its

perception as a safe investment option. Further, quantitative easing in developed

economies and the resultant currency devaluation is likely to support gold prices.

These factors should make the mines economically viable at the existing cost of

production.

Relative Valuation: Based on our peer analysis, Otis Gold’s Market Capitalization to

Resources (contained AU oz) ratio of C$6.9 per oz is much lower than the median of

C$17.6 per oz for a group of peer companies. We note that as companies move closer

to production they generally command significantly higher multiples. Therefore, as Otis

Gold transitions from the exploration stage to development and production, we believe

that there can be substantial upside potential from current levels. Additionally, Otis

enjoys advantages in projected stripping ratios and gold recoveries relative to its peer

group, which further underscores its low valuation.

3

Otis Gold Corp.

Company Overview

Otis Gold Corp. is a mineral exploration company primarily focused on acquiring and

developing gold projects in the state of Idaho, USA. It is a Canada-based company listed

on the TSX Venture Exchange (TSX.V: OOO) since 28th

November 2007. In 2011, the

Company’s shares were listed on OTCQX International (OTCQX: OGLDF). Currently, the

Company has four projects; 1) Kilgore Gold Project, 2) Oakley Project 3) Gold Bug Project

and 4) Hai Project.

Exhibit 1 : Project Portfolio

Source: Company Presentation, January 2013

The Kilgore Gold Project, the Company’s flagship project, is an advanced-stage gold

exploration project with open-ended gold resources in which Otis has a 100% working

interest. The Kilgore deposit is a low sulphidation, volcanic-hosted epithermal hot spring

system located in Clark County, Idaho, approximately 70 miles north of Idaho Falls. Its

resources are NI 43-101 compliant with Indicated resources of 27.3 million tons containing

520,000 oz Au @ 0.59gpt and Inferred resources of 20.2 million tons containing 300,000

oz Au @ 0.46gpt updated in 2012. Prior to Otis Gold, the Kilgore Project was initially

operated by Placer Dome, Pegasus Gold & Echo Bay Mines. To date, over 60,000 meters

of drilling has been conducted at Kilgore with Otis Gold contributing about 20,000 meters

drilling between 2008 and 2012. The results of the recent drilling at the Kilgore North

Target area showed drilling at 82.3 meters of 0.95gpt gold in hole 12 OKR-291, 121.9

meters of 1.04gpt Au, that includes 45.7 meters of 1.52gpt Au, in hole 12 OKR-292, and

83.8 meters of 1.12gpt Au, that includes 30.5 meters of 2.10gpt Au, in hole 12 OKR-294.

The Oakley Project is an Intermediate-stage gold exploration project with open-ended gold

resources located in Cassia County, Idaho, USA. As of 2008, it had 14.4 million tons of

Inferred resources containing 235,000 oz Au @ 0.55gpt. Currently, the Company holds a

70% WI in the project and plans to increase it to 100% through a transaction with its

existing JV partners. On the completion of the acquisition of the entire 100% WI, the

Company plans to enter into another JV with Lateral Gold Corp., a gold exploration and

development company. They have already signed a Letter of Intent to option a 70% WI to

Lateral Gold Corp. with a definitive agreement expected to be signed by February 15,

2013. However, this JV is subject to the completion of Otis Gold’s ongoing acquisition of

the remaining 30% working interest.

The Gold Bug and Hai projects are gold exploration targets located in Lemhi County,

Idaho wherein no NI 43-101 compliant mineral deposits have been defined to date.

Currently, the Company has 100% WI in both the mines; however they have no plans to

explore these projects in the near future.

4

Otis Gold Corp.

Key Projects

Kilgore Project

The Kilgore deposit is an open pit mine which is an epithermal hot spring type of deposit

located in the state of Idaho. The project is located on the northern margin of the eastern

Snake River Plain, approximately 5 miles west-northwest of the small rural hamlet of

Kilgore, Clark County, Idaho. It is accessible by road approximately 32 miles northeast of

the town of Dubois and Interstate Highway 15. The Kilgore Project includes the Kilgore

Deposit (comprised of the Mine Ridge Area, Prospect Ridge Area and North Target Area),

Gold Ridge Target and Dog Bone Ridge Targets.

Exhibit 2 : The Kilgore Target Areas

Source: Company Presentation

Claims, Permits and Working Interest

The project has 232 unpatented federal lode federal mining claims located on U.S. Forest

Service land, Caribou-Targhee National Forest, Idaho. They also hold one Idaho state

land permit. Together, these claims and permits cover an area of 5,130 acres.

Otis acquired 100% WI in the Kilgore Project in November 2010 from Bayswater Uranium

Corporation and is not liable to pay any Net Smelter Royalties (NSR) on future production.

Geology

The Kilgore Gold site has low sulfidation deposits found very close to the surface of the

earth among volcanic rocks of Miocene age. Gold mineralization is the classic

disseminated, bulk-tonnage type similar to volcanic-hosted gold deposits found at Round

Mountain, Nevada and McDonald Meadows, Montana. Gold mineralization is localized by

west, northwest, and northeast trending structure. The deposit is composed of lithic tuff,

dike and silicified clastic sedimentary rocks.

Resources

Exhibit 3 : NI 43-101 Compliant Resources

Resource Category

Tons (Million)

Grade Au (gpt)

Contained Au oz

Estimation Type

Date

Indicated 27.3 0.59 520,000 Kriged 31st July 2012

Inferred 20.2 0.46 300,000 Kriged 31st July 2012

Source: ‘Technical Report and Resource Estimate for the Kilgore Gold Project’, by Donald E. Cameron, Consulting

Geologist, Company Website

5

Otis Gold Corp.

The resource cut-off grade of 0.24gpt Au is considered to be a reasonable estimate of

potential break-even mining economics based on the price, cost, recovery and mining

assumptions. Both the Indicated and Inferred resources have grades higher than 0.24gpt

indicating that it is economically feasible to develop the mine.

Further, geological studies undertaken by the Company indicate that there is substantial

potential for the Kilgore deposit to exceed the 1 million oz mark. Other target areas such

as Gold Ridge and Dog Bone Ridge have additional multi-million ounce potential.

Exploration and Drilling

Previous Work and Observations

To date, over 60,000 meters of drilling has been conducted at the Kilgore Project with Otis

Gold drilling around 20,000 meters between 2008 and 2012. During the time duration

1993-1996, Echo Bay Exploration, Inc. (EBX) was the most active explorer and had

performed airborne magnetic surveying, regional geologic mapping, soil sampling, and

collection of baseline soil data. The results indicated that the Kilgore deposit had strong

gold, arsenic, antimony, mercury, and selenium geochemical signature. EBX had plans to

put the mine into production and had completed the internal initial engineering

assessment. They identified a mineable potential of about 11MT@1.28gpt and considering

a production rate of 4,700tpd, the mine life was estimated to be about 6.6 years. However,

gold prices deteriorated to less than $300 per oz, making the project economically

unfeasible. In 2004, Kilgore Minerals Ltd. completed an updated scoping study which

showed attractive economics at a gold price of $375 per oz.

Permitting

Most of the Kilgore Project is located on United States Forest Service (USFS) federal

ground and hence Otis Gold has to submit a Plans of Operations (POO) to obtain permit

for drilling activities. Permits are obtained through the Caribou-Targhee National Forest

local headquarters in Dubois, Idaho, usually within 30 to 60 days, under a Categorical

Exclusion. In addition, Otis Gold has to sign a reclamation bond with USFS which is

released annually as reclamation work is completed.

Drill Activities and Results

In 2008, Otis Gold submitted a POO to obtain a permit for 20 drill sites at Mine Ridge.

They completed 4 core holes totaling 635 meters and all of them were found to be

mineralized (Average Recovery: 98.6%). Further in 2009, Otis Gold drilled 12 core holes

totaling 3,122 meters at Mine Ridge (Average Recovery: 97.4%). In 2010, Otis drilled 35

holes, out of which 31 were found to have significant mineralization (Average Recovery:

95%). Five additional holes were drilled to test CSAMT anomalies in the Dog Bone Ridge

area. However, only anomalous gold was discovered. In 2011, 41 holes were drilled, out of

which 28 were found to have significant mineralization (Average Recovery: 93.8%).

Intercepts greater than 100 meters thick were discovered in holes 11 OKC-258 and 11

OKC-259.

O’Keefe Drilling of Butte, Montana conducted the drilling program at the North Target Area

(North West of Kilgore deposit) for Otis Gold in 2012. The 2012 fall drill program included

1,009 meters of drilling in 6 Reverse Circulation (RC) holes and it was found that all six of

them were mineralized. Four out of these six drilled holes had bulk-tonnage thickness and

gold grades.

6

Otis Gold Corp.

Exhibit 4 : Results of 2012 Fall Drill Program – Kilgore North Target Area

Hole Number

Distance Drilled (Range) Thickness (meters)

Grade (gpt Au) From (meters) To (meters)

OKR-290

13.7 15.2 1.5 1.03

35.1 26.6 1.5 0.98

61.0 74.7 13.7 0.31

102.1 112.8 10.7 0.55

12 OKR-291

3.0 7.6 4.6 0.67

12.2 16.8 4.6 1.32

45.7 128.0 82.3 0.95

105.2 115.8 10.6* 2.21

12 OKR-292 6.1 128.0 121.9 1.04

38.1 83.8 45.7** 1.52

12 OKR-293

33.5 39.6 6.1 0.45

45.8 48.8 3.0 0.63

76.2 89.9 13.7 0.30

111.3 114.3 3.0 1.17

164.6 166.1 1.5 1.48

12 OKR-294

15.2 29.0 13.8 1.09

61.0 144.8 83.8 1.12

96.0 126.5 30.5*** 2.10

12 OKR-295

3.0 13.7 10.7 0.42

38.1 73.2 35.1 0.77

112.8 129.5 16.7 0.53

Source: Company News, 17th January 2013,

* indicates that within the distance drilled i.e. from 45.7 meters to 128 meters, there exists a patch from 105.2 meters

to 115.8 meters where the grade of Gold was found to be 2.21gpt.

** indicates that within the distance drilled i.e. from 6.1 meters to 128.0 meters, there exists a patch from 38.1

meters to 83.8 meters where the grade of Gold was found to be 1.52gpt.

*** indicates that within the distance drilled i.e. from 61.0 meters to 144.8 meters, there exists a patch from 96.0

meters to 126.5 meters where the grade of Gold was found to be 2.10gpt.

Soil Studies

Otis Gold studied 681 soil samples from two grids (North Soil Grid – 266 samples and

South Soil Grid – 415 samples) which are positioned along the strike projection of the

Northwest Fault. The purpose of the study at the North Soil Grid was to extend the strike

length of the Mine Ridge Deposit northward of the +100 meters thick intercepts. The

results from the North Soil Grid displayed strong linear gold-in-soil anomalies that trace the

extension of the Northwest Fault for a minimum of 400 meters to the northwest and

represent the surface manifestation of feeder faults that supplied the gold-rich

hydrothermal fluids into the deposit’s host rocks. Sampling of the South Soil Grid was

performed in order to better define drill targets in the Prospect Ridge target area, located

immediately to the southeast of the Mine Ridge deposit. Results from the South Soil Grid

identified a large, and previously untested, anomalous area in the Prospect Ridge target

area. The results from the South Soil Grid displayed a very strong and coherent gold-in-

soil anomaly that covers around 15,000 sq. meters in the Prospect Ridge target area.

Metallurgy

In 2010, McClelland Laboratories, Inc. of Sparks, Nevada conducted column leach tests

on three main host rock sample types found at the deposit. The results were in line with

historical findings and indicated that a conventional heap leach process technology can be

used at the deposit. It was also found that 93% of the deposit comprised of Felsic Dikes

and Lithic Tuff type of rocks and maximum mineralization occurred in them. The column

7

Otis Gold Corp.

leach tests showed that the recovery rate for three types of host rocks (Felsic Dikes, Lithic

Tuff and Aspen Formation) was 85%, 81% and 70% respectively. The tests performed in

2010 indicated that up to 77% of the gold extracted during the process is recoverable

within 30 days. Further in 2011, column leach tests were conducted on three samples

comprising oxidized and non-oxidized Dike and oxidized Lithic Tuff and the results

confirmed that the heap leach cyanide method of extraction can be used at the Kilgore

Mine Ridge. Most importantly, they showed that larger crush size material (e.g. 1.5”)

leached at the same rate as 0.5” crush size material in 2 of 3 tests, indicating the potential

for a “run of mine” scenario at Kilgore. Larger crush sizes will reduce both capital and

operating costs at Kilgore.

Exhibit 5 : Results of 2011 Column Leach Tests on 1.5 inch and ½ inch crushed material

Rock Type Crush Size Leach Time % Au

Recovery

CN Consumption (lbs/ton ore)*

Lime Consumption (lbs/ton ore)

Oxidized Felsic Dike

12.5 mm/0.5” 78 days 83.3 % 0.76 1.0

38.0 mm/1.5” 78 days 71.2% 0.69 1.0

Un-Oxidized Felsic Dike

12.5 mm/0.5” 91 days 74.5% 0.82 1.8

38.0 mm/1.5” 91 days 78.5% 1.00 1.1

Oxidized Lithic Tuff

12.5 mm/0.5” 91 days 85.5% 0.87 1.8

38.0 mm/1.5” 91 days 84.9% 0.60 1.8

Source: Company Website * Commercial CN consumption in heaps is generally 25%-33% of NaCN consumption

achieved from laboratory tests.

The results of the column leach tests showed a recovery rate of 85% - 90% within 30

days. The tuff comprises 65% of the deposits. The leaching process (extraction of gold

under the effect of a solvent) for tuff requires the same time for both crush sizes. The un-

oxidized dike showed a similar recovery rate of approximately 75%, with the coarser

crushed material having an even better recovery percentage at 78%. Only the oxidized

dike (14% of the deposit by volume) showed feed size sensitivity in regard to gold

recovery in column leach tests, possibly due to the shorter residence time of 78 days.

Future Plans

At the Kilgore deposit, around 7,000 meters of drilling is being planned for 2013, focused

on the North Target area. Additional drilling is expected to take place at Prospect Ridge.

The Company also plans to initiate scoping study to evaluate project economics and also

conduct 12 month environmental baseline studies. In addition, Otis Gold has received

permits to drill on six sites at the Gold Ridge target and hence initial testing is expected to

be undertaken.

8

Otis Gold Corp.

Oakley Project

The Oakley Project is an intermediate-stage epithermal hot springs gold exploration

project comprised of two primary targets, Cold Creek and Blue Hill Creek, located in

Cassia County, Idaho, roughly 15 miles south of Oakley and just north of the Utah/Nevada

border.

Exhibit 6 : The Oakley Project - Location

Source: Company Website

Claims, Permits and Working Interest

The Oakley Project has 107 federal lode mining claims as well as several Utah State

leases (comprising 1,360 acres). Currently, Otis Gold has 70% WI in the Oakley Project

and is in the process of increasing that to a 100% stake. Once completed, Otis plans to

enter into a separate transaction with Lateral Gold Corp. to offer them an option to

purchase up to 70% WI in the Oakley Project in return for cash, property expenditures and

Lateral shares.

Exhibit 7 : The Oakley Project - Lateral Gold Corp. – JV Payment Schedule for 70% WI

Type of Payment

Amount Conditions

Cash

C$15,000 On execution of agreement

C$35,000 On the acceptance of option by TSX Venture Exchange (i.e. Acceptance Date)

C$115,000 1st anniversary of the acceptance date

C$250,000 2nd

anniversary of the acceptance date

C$250,000 3rd anniversary of the acceptance date

C$250,000 4th anniversary of the acceptance date

Total Cash C$915,000 To be paid by Lateral Gold Corp.

Work Expenditures

C$300,000 shall be incurred within 12 months following the Acceptance Date with at least 50% to be spent directly on drilling

C$700,000 within 24 months following the Acceptance Date

C$1,300,000 within 36 months following the Acceptance Date

C$1,500,000 within 48 months of the Acceptance Date

C$1,900,000 within 60 months of the Acceptance Date

Total Work Expenditure

C$5,700,000 To be incurred by Lateral Gold Corp.

Shares

200,000 On acceptance date

250,000 on or before the first anniversary of the Acceptance Date

500,000 on or before the second anniversary of the Acceptance Date

1,500,000 on or before the third anniversary of the Acceptance Date

2,500,000 on or before the fourth anniversary of the Acceptance Date

Total Shares 4,950,000 To be issued by Lateral Gold Corp.

Source: Company News, 10th January 2013

9

Otis Gold Corp.

Exhibit 8 : The Oakley Project - Lateral Gold Corp. – JV Payment Schedule for balance 10% WI

Type of Payment Amount Conditions

Cash C$500,000 within 90 days of earning its 70% interest

C$1,000,000 within 24 months of earnings its 70% interest

Total Cash C$1,500,000 To be paid by Lateral Gold Corp.

Shares 500,000 issued within 90 days of earning its 70% interest

1,500,000 within 24 months of earnings its 70% interest

Total Shares 2,000,000 To be issued by Lateral Gold Corp.

Source: Company News, 10th January 2013

The balance 20% WI can be taken by Lateral Gold Corp. by offering 5 million 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 six months of achieving the 80% interest.

Additionally, an NSR of 2.5% will be issued in favor of Otis Gold in connection with any

lands subject to this agreement that are not already encumbered by royalty agreements.

Geology

Blue Hill Creek is comprised of gold bearing sinters and Tertiary Salt Lake Formation

among sedimentary and volcanic rocks. Sedimentary rocks with disseminated pyrite and

quartz veining form the main target in the altered zone with mineralization in all directions

containing surface gold values up to 0.060 opt. At Cold Creek, alteration and gold

mineralization are hosted by Tertiary Salt Lake Formation sedimentary and volcanic rocks.

Pervasive silicification and local strong chalcedonic quartz veining are the primary

alteration types present at the main target in the altered zone. This zone contains surface

gold values to 0.060 opt. Mineralization appears related to north- and northeast-trending,

high-angle structures for both Blue Hill and Cold Creek.

Resources

Exhibit 9 : NI 43-101 Compliant Resources

Resource Category Tons (Million) Grade Au (gpt) Contained Au oz Date

Indicated 14.4 0.549 235,000 February 2008

Source: Technical Report, Blue Hill Creek Gold Project - Geology, Mineralization, Resource Potential, Cassia

County, Idaho’, by Mr. Laurence Pancoast, Geologist, Company Website

Exploration and Drilling

Otis Gold conducted geologic mapping and sampling at the Blue Hill Creek and Cold

Creek Project and completed a CSAMT survey in the summer and fall of 2008. Results

from the survey indicate the presence of a sizeable and geologically significant 1.5

kilometer-long, low-resistivity anomaly underlying and extending down dip from the Blue

Hill Creek gold deposit. Based on the results of the survey, the Company took additional

Federal lode mining claims and applied for additional Idaho State leases to expand the

Company's land position beyond the original core claims.

Hai Project

The Hai Project is a gold exploration project located at Lemhi Counties of Idaho with 7

lode claims. This project was acquired as a part of the JV agreement with Bayswater

Uranium in 2008. It is 5 sq. mile, volcanic-hosted disseminated epithermal hot-spring gold

system situated on the northern margin of the eastern Snake River Plain. The deposit

consists of rocks that belong to the Miocene age while the mineralization is of Pliocene

age. No exploration has been done on this project nor has any resources been defined.

10

Otis Gold Corp.

Gold Bug Project

The Gold Bug Project is a gold exploration project located roughly 3 miles from the Hai

project. The eluvial placer gold deposits occur on the slopes of gentle terrain and deposit

is characterized by large tonnage, low-grade gold mineralization. The project has 9 lode

claims. No exploration has been done on this project nor has any resources been defined.

11

Otis Gold Corp.

Industry Overview

Gold

Gold (Symbol: Au) is a bright yellow colored, malleable, ductile, dense and lustrous metal.

Its chemical properties such as resistance to corrosion, electrical conductivity, infrared

(heat) reflectivity and thermal conductivity have led to its uses in a variety of industry

applications. It is soluble in cyanide alkaline solutions and mercury, a property which is

very commonly used for gold extraction from low-grade ore. Gold is found in very low

concentrations and usually occurs in an alloy form with silver and copper. It also occurs in

compound forms of tellurides such as calaverite, sylvanite, petzite, etc. It is found in

alluvial and lode deposits in the ground, as well as in low concentrations in sea water.

Demand

The demand for gold is chiefly driven by the consumer’s need to preserve value. In 2011,

gold demand (including official sector purchase) grew by 10.6% Y-o-Y in terms of volume

to 4,585.7 tons. In terms of value, the demand grew by 41.9% to US$231.7billion in 2011

led by an increase in the price of gold.iii

However, in the 9 months period ended

September 2012, gold demand declined by 7.3% Y-o-Y in terms of volume to 3,185 tons

and by 0.3% in terms of value to reach US$169.2billioniv primarily due to a decline in

demand from the two major consumers; India and China. Depreciation of rupee against

the US dollar, stubborn inflation and high interest rates in India caused the local prices of

gold to shoot up, impacting the jewelry demand from that region. Further, China’s GDP

was hampered by a slump in real estate market and a decline in the growth rate of

exports. Negative sentiments in the market triggered by reduced economic growth,

coupled with a shift by policy makers giving priority to consumption over investment has

hurt commodity prices leading to decline in gold demand in China.

Exhibit 10 : Total Gold Demand: By Applications (2007-2011)

2,405 2,187

1,747 2,017 1,972

685 1,183

1,271

1,588 1,704

462 436

368

466 453

77 457

0

1,000

2,000

3,000

4,000

5,000

2007 2008 2009 2010 2011

Jewellery Total investment Technology Official sector purchases

Go

ld D

em

an

d (T

on

ne

s)

3,552 3,3863,806 4,5864,148

43%

37%

10%

10%Jewellery

Total investment

Technology

Official sector purchases

2011

Source: World Gold Council

Note: Gold demand includes official sector purchases. For the years 2007-2009, there were net official sector sales

which form a part of the supply and hence, are not shown in the chart.

12

Otis Gold Corp.

The major sources of gold demand can be categorized into: jewelry, investment,

technology and official sector (Central Banks).

Jewelry

Jewelry has consistently accounted for a major proportion of the gold demand. Usually,

demand for jewelry grows during periods of price stability and lessens during periods of

price volatility. In 2011, about 43.0% of the total gold demand in terms of volume

amounting to 1,972.1 tons was driven by jewelry on the back of strong demand from

India.v

Investment Demand

Investment demand, which includes bar and coin demand as well as investment in ETFs,

was the second largest source of demand for gold and contributed to 37.2% (1,703.9 tons)

of the total gold demand in terms of volume in 2011. vi

In the past five years i.e. 2007-

2011, investment demand increased at a CAGR of 53.8% in terms of value to reach

US$86.1 billion. vii

The ability to reduce credit risk, use of gold to hedge against inflation

and positive price expectations have been the key drivers for increased investments in

gold.

Technology

Gold in technology is mainly used in electronics and dentistry. The demand for gold used

in Technology as a percentage to the total demand has declined to 9.9% (452.9 tons) in

2011 from 13% in 2007 (462.0 tons). viii

High average gold prices and negative consumer

sentiments in an uncertain economic environment have led to reduced consumption in this

sector.

Official Sector Sales/Purchases

Official sector sales/purchases are undertaken by Central Banks and multinational

organizations such as International Monetary Fund. On an average, central governments

hold about 15% of their official reserves as gold, although the fraction differs by country.

Since 1989, the official sector has been a net seller and has, therefore, contributed to the

supply of gold. However, post the recession in 2008-09, there has been a significant

demand shift in this sector and central banks have turned net purchasers of gold. The

official sector purchased about 97.6 tons of gold (about 9% of the total demand) in the

third quarter of 2012 and 456.8 tons of gold (about 10% of the total demand) in 2011. ix

European economies have started increasing the proportion of gold reserves in order to

provide confidence and stability in view of on-going weakness in the Eurozone. Even

emerging economies have experienced strong growth and have started buying significant

amounts of gold in order to diversify their external reserves and to re-establish the former

balance between foreign currencies and gold. The World Gold Council projects that the

official sector will continue to purchase gold and contribute to its demand in the future.

Regional Demand for Gold

India is the world’s largest consumer, contributing to 27% of the total demand in 2011 in

terms of volume (933.4 tons) x. Demand for gold in India is driven by cultural and religious

traditions and, hence, is relatively less affected by global economic trends. The recent tax

hike on imports of gold in India is likely to affect the demand marginally. Greater China

(China, Hong Kong and Taiwan) is another large market of gold, contributing to 23.5%

(811.2 tons) of the total demand in terms of volume in 2011. xi Gold demand in China has

increased consistently as a result of liberalization of the gold investment market, launch of

novel gold savings accounts and an increasing preference for gold as a means of wealth

preservation.

13

Otis Gold Corp.

Exhibit 11 : Consumer Demand Trends (2000-2006-2011)

28.6%

11.6%

5.0%25.0%

14.6%

15.3%

2000

2,532 tonnes

30.6%

12.4%

4.9%27.0%

16.0%

9.1%

2006

India Greater China

Europe ex CIS * Middle East - Turkey

USA Rest of the World (ROW)

2,360 tonnes

27.1%

23.5%10.9%

10.0%

5.6%

22.9%

2011

3,450 tonnes

Source: World Gold Council

Note: Consumer demand is defined as gold purchased directly by individuals and includes jewelry and bar and coin

purchase.

Supply

The major sources of gold supply include mines, recycled gold and official sector sales.

The gold supply trend in the recent years has been given below:

Exhibit 12 : Break-up of Total Gold Supply (2007-2011)

956 1,217

1,549 1,723 1,669

2,032

2,060

2,297

2,632 2,836 484

236

44

0

1,000

2,000

3,000

4,000

5,000

2007 2008 2009 2010 2011

Recycled gold Total mine supply Official sector sales

Go

ld S

up

ply

(To

nn

es)

3,472 3,8903,513 4,5054,355

37%

63%

Recycled gold

Mine production

2011

Source: World Gold Council

Note: Supply includes official sector sales. For the years 2010-2011, there were net official sector purchases which

form a part of the demand and hence, are not shown in the chart.

As shown by the chart above, relative proportion of recycled gold and total mine supply

has remained near about the same in 2011 as compared to the previous year.

14

Otis Gold Corp.

Mine production

Exhibit 13 : Gold Mine Production Trend (2000-2006-2011)

6.7%

11.5%

13.7%

5.5%

16.6%5.2%4.8%

6.0%

30.0%

2000

2,590 tonnes

9.5%

9.9%

10.3%

6.0%

10.8%8.0%

6.6%4.1%

34.8%

2006

China Australia USA

Russia South Africa Peru

Indonesia Canada Other

2,359.9 tonnes2,481 tonnes

13.1%

10.0%

8.8%

7.4%

7.0%

5.6%4.4%

4.1%

39.6%

2011

2,827 tonnes

Source: World Gold Council

Note: World gold production data for the 2006 and 2011 has sourced from World Gold Council. Production figure for

2000 has been sourced from the US Geological Survey.

While new mines have been developed in the past few years, these have served as a

means to replace existing production and to meet the current demand rather than to

expand global production. As a result, production has remained reasonably steady and

averaged 2,377 tons per year in the five years to Q4 2011. xii

Gold mining involves longer

lead times and it takes 5 to 10 years for a new mine to come on stream. Hence, gold

production is described as relatively inelastic as miners cannot rapidly increase production

to take advantage of increase in prices.

Gold mine production takes place throughout the world except in Antarctica, where mining

is prohibited. Historically, South Africa was the largest producer of gold followed by the

U.S. and Australia. However, the rapidly rising demand in China has boosted its domestic

production and made it the major producer in 2011. According to the Chinese Ministry of

Industry and Information Technology, in the coming years the Chinese government is

looking to increase domestic production to 450 tons by 2015 (increase of 25% over 2011

levels) and is supporting gold exploration, encouraging mergers and restructuring within

the sector, and promoting their technological up-gradation. xiii

Recycled Gold

Since gold is neither consumed nor destroyed in its use, recycling forms an important

source of gold supply. The recycling of gold ensures availability of a potential source of

supply which helps to cater to an increase in demand and keep the gold price stable.

Recycled gold constituted an average of 37% of the annual supply flows over the 5-year

period ending Q4 2011.xiv

15

Otis Gold Corp.

Reserves

Exhibit 14 : Gold Reserve Trends (2000-2006-2012)

25%

10%

10%7%9%

1%7%

1%2%3%1%

23%

2000

33,157 tonnes

27%

11%

11%8%

9%

2%4%1%3%2%1%

21%

2006

USA GermanyIMF ItalyFrance ChinaSwitzerland RussiaJapan Netherlands

2,359.9 tonnes30,472 tonnes

26%

11%

9%8%

8%3%

3%3%2%2%2%

23%

2012

31,575 tonnes

Source: World Gold Council

The chart above demonstrates that there has been no significant change in world gold

reserves over 2000-12. It is observed that USA, Germany and IMF have, historically, been

the largest holders of gold reserves.

Gold Price Trend and Outlook

With increasing demand for gold in jewelry, currency, industrial applications and

investment purposes, gold price has been on a rise. Its price in 2012 averaged US$1,669

per oz, an increase of 6.2% over the 2011 average of US$1,572 per oz. xv

Exhibit 15 : Daily Gold Price (2007-Present)

0.0

400.0

800.0

1,200.0

1,600.0

2,000.0

1/1

/20

07

7/1

/20

07

1/1

/20

08

7/1

/20

08

1/1

/20

09

7/1

/20

09

1/1

/20

10

7/1

/20

10

1/1

/20

11

7/1

/20

11

1/1

/20

12

7/1

/20

12

1/1

/20

13

Daily Gold Price / London PM Fix (US$/Oz)

Pri

ce

(U

S$

/Oz)

Source: World Gold Council

There has been a growing uncertainty with respect to US Budget Deficit and EU debt and

there have been no immediate or concrete solutions to these problems. However, policy

makers are trying to solve these issues through unconventional monetary policies such as

quantitative easing wherein the central bank buys financial assets from commercial banks,

thus injecting money into the economy. Further round of Quantitative easing is expected in

future to revive the economy. However, with increase in money supply there could be a

debasement of currency. In such a scenario, investors are likely increase their holdings in

Gold due to its perception as a safe haven during volatile times, a good portfolio diversifier

and hedge against inflation increasing its demand. On the other hand, with excessive debt,

there is possibility of the default at a country level wherein all the government bonds could

be written-off and hence investors would start looking at Gold as the next best investment

option.

16

Otis Gold Corp.

Growth Factors

Encouraging Prospects for Flagship Kilgore Project

Increase in Resources

The Kilgore Deposit contains a NI 43-101 Indicated Resource of 520,000 oz Au in 27.4

million tons at a grade of 0.59gpt Au (representing a volume increase of 138% in oz and

328% in tons as compared to the 2002 estimates). The Inferred resources contains

300,000 oz Au in 20.2 million tons at a grade of 0.46gpt Au (representing a volume

increase of 12% in oz and 131% in tons as compared to the 2002 estimates). It should

also be noted as per geological studies undertaken by the Company, there exists a

significant potential for Otis Gold’s Kilgore deposits to exceed the 1 million oz mark.

Further, other target areas such as Gold Ridge and Dog Bone Ridge have additional multi-

million ounce potential.

Potential at the Kilgore North Target Area

According to the results of the drilling undertaken at the Kilgore North Target Area in the

fall of 2012, where a number of bulk-tonnage intercepts in excess of 80 meters in

thickness were intersected, the 6 holes which were drilled showed the existence of 82.3

meters (m) of 0.95 grams per tons gold (gpt Au) in hole 12 OKR-291, 121.9 m of 1.04gpt

Au, that includes 45.7 m of 1.52gpt Au, in hole 12 OKR-292, and 83.8 m of 1.12gpt Au,

that includes 30.5 m of 2.10gpt Au, in hole 12 OKR-294. We believe that the drilling results

indicate better prospects for the Company as it intends to generate future revenue by

transitioning from the explorer to the developer/ producer stage in this project.

Near-term Production

The Kilgore Project is a near-term production project and is expected to commence

production as early as 2017 and produce approx. 50,000 oz Au per year. The project has

the following positive factors:

Characterized by volcano-based open pit epithermal deposits which are less

expensive in terms of extraction costs, thereby reducing technical feasibility risk

Based in Idaho which is not only a mining friendly jurisdiction but also a hub for

several gold discoveries in the past

Easily available labor and an already established infrastructure

Very favorable projected strip ratios and gold recoveries

The Kilgore deposit, with lower capital requirements, favorable infrastructure and location,

and lower technical risk, has a high probability to succeed and is likely to generate cash

flows for the Company in future.

Secured Funding Through JV

Otis Gold entered into a JV on its Oakley Project with Lateral Gold Corp, another junior

gold exploration and development company, in January 2013. The Oakley Deposit has an

NI 43-101 compliant Inferred resource of 235,000 oz Au at a grade of 0.55gpt. The JV will

provide an opportunity to the Company to further develop the Oakley Project and generate

capital to fund other activities.

Experienced Technical Team and Strong Management

Otis Gold’s exploration and development team has high expertise in developing mining

projects and includes members from the US exploration team of Echo Bay Mines such as

17

Otis Gold Corp.

Mitch Bernardi, John Carden, Donald E. Ranta, Charles W. (“Bill”) Reed. This expertise is

visible in their strong track record during their term of employment at Echo Bay Mines as

well as other organizations where they were involved in the development of several

projects such as Lamefoot gold deposit, Easy Junior gold deposit, White Pine County gold

deposit, Coulterville gold Project, Crypto zinc deposit, Pan gold deposit, Noche Buena

Project, San Sebastian silver and gold mine, McDonald gold ore, Santa Gertrudis gold ore,

and Paradones Amarillos among several others.

The management team led by Craig Lindsay (CEO and President), Mitch Bernardi (Chief

Geologist), and John Carden (Consulting Geologist & Board Advisor) have a combined

experience of 98 years in corporate finance, public company management, as well as

exploration and mining. An experienced technical team coupled with strong management

is a strong driver for future growth of the Company.

Favorable Outlook for Gold Demand and Price

Demand for gold in terms of jewelry, in the form of investment as well as in technology has

been rising rapidly in the past few years. Historically, the highest demand for gold has

been from India for use in jewelry. However since 2006, China’s gold demand has

increased at a rapid pace prompting the Government to support domestic production as

well as increase imports in order to meet its current demand. Central Banks of various

countries have been purchasing gold to protect themselves from future recessionary

times.

The rising demand for gold combined with the relatively inelastic nature of its supply has

led the gold prices to skyrocket after the 2008-09 recession. In the backdrop of this

demand-supply imbalance as well as additional quantitative easing, growth in demand and

price is likely to continue.

Exhibit 16 : Gold Demand vs. Price (2007-2012)

600

800

1,000

1,200

1,400

1,600

1,800

600

800

1,000

1,200

1,400

1,600

1,800

Q1 2007

Q3 2007

Q1 2008

Q3 2008

Q1 2009

Q3 2009

Q1 2010

Q3 2010

Q1 2011

Q3 2011

Q1 2012

Q3 2012

Total Gold Demand (Tonnes) Average Gold Price / London PM Fix ($/Oz)

Go

ld D

em

an

d (T

on

ne

s)

Ave

rag

e G

old

Pric

e ($

/Oz)

Source: World Gold Council

18

Otis Gold Corp.

SWOT

Strengths

Experienced Technical Team. Otis Gold boasts a strong technical team which

consists of the core members of the Echo Bay Mines US exploration team. The Echo

Bay Mines team was one of the most active explorers during the period 1993-1996 at

the Kilgore deposit. They successfully drilled approx. 25,000 meters at Kilgore and

performed airborne magnetic surveying, regional geologic mapping, soil sampling,

and the collection of baseline soil data. The results of these exploration studies

demonstrated existence of a substantial gold deposit at Kilgore.

Kilgore is a Low Sulphide Epithermal Deposit. The extraction costs related to this

resource are relatively low due to the nature of epithermal deposits, which are found

very close to the surface. Further, low sulphidation deposits allow for the use of the

‘Heap Leach Extraction Method,’ which increases the recovery rate at low costs and

thereby enhances the economic feasibility of the Kilgore Project.

Mining Friendly Jurisdiction. Idaho has a long history of being a mining friendly

jurisdiction and is rich in silver, molybdenum, gold, and phosphate deposits.

Furthermore, the Kilgore Project is outside the jurisdiction of any national park or

Indian Reservation making the permitting process less complicated.

Potential for Expansion. The Kilgore Project currently has a strong Indicated and

Inferred resource base which has the potential to be increased to over 1 million oz.

Since volcanic deposits like Kilgore occur in clusters, it is estimated that the Gold

Ridge and Dog Bone Ridge targets could host additional multi-million ounce potential.

Availability of Infrastructure and Labor. The Kilgore site is accessible through a

network of paved roads while a freight line runs through Spencer (Idaho) and Dubois

(Idaho). Further, water and power are abundant while labor is also readily available.

Weaknesses

Losses resulting in Dilution of Shareholder Base. In the absence of revenue, the

Company has been reporting losses since inception in April 2007. These losses have

resulted in erosion of the Company’s net worth compelling Otis Gold to raise equity

through private placements and dilute the shareholder base.

No Proven Reserves. While Otis Gold does report an Indicated and Inferred

resource base of approximately 1,055,000 oz of gold, it does not have any Measured

deposits or gold in the Reserve category.

Opportunities

Growing Demand for Gold. The demand outlook appears favorable led by investor

preference for gold, increasing consumption demand and increased gold buying by

Central Banks globally.

Projection of Higher Gold Price in Future. Quantitative Easing and the possible

devaluation of currencies coupled with higher inflation rate are likely to lead to an

increase in gold prices. As gold prices rise, cut-off grades fall making it possible for

the companies to mine lower-grade material.

Availability of More Efficient Technology. Innovative and more efficient methods

for gold detection which use satellite imagery, remote sensing technology and

geophysics have increased the likelihood of discovering economically viable

19

Otis Gold Corp.

quantities of gold deposits. This would encourage more exploration activities and

hence provide more growth opportunities for the industry.

Threats

Rising Costs. If production cost inflation outstrips increases in gold price, the

economic viability of gold mines under development would be impacted, thereby

discouraging companies from pursuing further development of exploration projects.

Mining Tax on Federal Land. According to the General Mining Law of 1872, mining

companies in USA do not have to pay royalties to the Government for any gold

produced on federal land. However, the Obama administration has considered

implementing a 12.5% tax proposal on such gold mine production, which could lead to

increases in mining costs and reduced profit margins. xvi

20

Otis Gold Corp.

Financial Performance

Exhibit 17 : Latest Financial Statement

In C$ Quarter Ended

Sept 30, 2012 Quarter Ended

Sept 30, 2011 Y-o-Y (%)

EXPENSES

Consultants 39,991 42,251 -5.3%

Office Expenses 31,788 35,530 -10.5%

Share-based Compensation 0 10,155 -100.0%

Investor Relations and Advertising 13,105 39,512 -66.8%

Professional Fees 33,972 12,914 163.1%

Travel and Entertainment 11,169 29,254 -61.8%

Regulatory Costs 3,058 3,503 -12.7%

Property Investigations 0 4,147 -100.0%

Depreciation of Equipment 2,277 2,852 -20.2%

Bank Charges 546 523 4.4%

Total Expenditure 135,906 180,641 -24.8%

OTHER ITEMS

Interest Income 4,531 8,108 -44.1%

Foreign Exchange Loss (3,058) (110,710) -97.2%

Total Other Items 1,473 (102,602) NM

Comprehensive Loss for the Period (134,433) (283,243) NM

Deficit at the Beginning of the Period (4,382,616) (3,160,258) NM

Deficit at the End of the Period (4,517,049) (3,443,501) NM

Loss Per Share (0.002) (0.007) NM

Source: Company Reports

Otis Gold, is currently in exploration stage, and has therefore not yet begun generating

revenues from its operating activities. The Company has reported operating losses since

its inception in April 2007. Loss for the quarter ended September 30, 2012 was C$0.13

million as compared to C$0.28 million for the same period a year before. Total Expenditure

for the Q1FY2013 reduced by 24.8% Y-o-Y due to reduced Investor Relations &

Advertising Expenses and Travel & Entertainment Expenses.

The Company is currently debt-free and has a cash balance of C$1.7million as of

September 30, 2012. Fuelled by acquisitions of exploration assets activities at its Kilgore

Project, the Unproven Mineral Interests (Exploration and Evaluation Assets) increased

from C$2.4 million as of 30th

June 2009 to C$15.3 million as of September 30, 2012.

So far, the Company has raised funds for its operations through the issue of common

shares and warrants often issued in consideration for Exploration and Evaluation Assets.

The Company is yet to raise funds though debt or any other fixed interest bearing security.

21

Otis Gold Corp.

Relative Valuation

While considering comparable companies, we have restricted our Peer set to only include

companies that have projects in Idaho and have NI 43-101 compliant resources with

contained Au of 500,000 oz or more.

Exhibit 18 : Peer Analysis

Exhibit 19 : Market Capitalization per Ounce of NI 43-101 Certified Au or Au Eq.

55.9

29.8

20.5 14.8

9.4 6.9

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

Northern Vertex Mining Corp(NEE CN)

Midas Gold Corp

(MAX CN)

Terraco Gold Corp

(TEN CN)

Premium Exploration Inc

(PEM CN)

Atlanta Gold Corp

(ATG CN)

Otis Gold Corp(OOO CN)

MC

ap

/Co

nta

ine

d A

U in

oz (

C$

/oz)

Median:C$17.6/ oz

Otis Gold currently trades at a Market Capitalization to Resources (oz contained Au) ratio

of C$6.9 per oz of gold or gold equivalent which is lower than its peers who are trading at

a median of C$17.6 per oz of gold or gold equivalent. It is important to note that Northern

Vertex and Midas Gold command a premium as they both are in advanced stage of their

business cycle. Midas Gold has filed its Preliminary Economic Assessment for its Golden

Meadows Project in September 2012 and Northern Vertex is expected to commence

construction on a phase one pilot plant in Q2 2013. Given that Otis Gold has a sound

asset base and an experienced technical team; one can expect a strong potential upside

for its valuation as the Company progresses though its business cycle.

Company Name Ticker Share Price (C$) – As on 24

th Jan. 13

Shares o/s

Million

M. Cap (C$

million)

NI 43-101 oz

(Au or Au Eq.)

M.Csp/oz (C$)

Northern Vertex Mining Corp

NEE CN 1.30* 52.6 68.4 1,223,140 55.9

Midas Gold Corp MAX CN 1.85 114.8 212.4 7,119,000 29.8

Terraco Gold Corp TEN CN 0.15 133.8 19.4 948,000 20.5

Premium Exploration Inc

PEM CN 0.08 143.2 11.5 775,000 14.8

Atlanta Gold Corp ATG CN 0.05 248.2 11.2 1,182,300 9.4

Otis Gold Corp OOO CN 0.15 50.2 7.3 1,055,000 6.9

Sources: Bloomberg, Company websites.

* Price as on 22nd

Jan. 13

22

Otis Gold Corp.

Key Risk Factors

Financing Risk. As an exploration stage Company, Otis is likely to need additional

funds to fully develop its assets. If Otis is not able to raise funds as needed, the

Company may face delays or be forced to abandon its exploration and production

plans. However, since inception, the Company has successfully raised capital through

several private placements on various occasions, while the pending JV with Lateral

Gold Corp will also further mitigate this risk.

Commodity Price Risk. The range-bound movement of gold prices coupled with

rising extraction costs in recent times has been a major concern for gold exploration

companies. In such a scenario, a significant decline in gold prices could make

exploration projects economically unviable. However, management indicates that their

cash cost of production is between $650 – $750 per oz which compares very

favorably to the recent average gold price of $1,697 per oz xvii

.

Exploration Risk. There is a risk that the Kilgore Project may not achieve the

estimated resource base as anticipated by the Company. However, geological studies

carried out by Otis Gold have established that the probability of finding gold at their

sister deposits at Gold Ridge and Dog Bone Ridge is fairly high.

Permitting Risk. The mining industry is subject to significant regulatory control due to

the environmental threats resulting from exploration and drilling activities. Any delay

or failure to receive permits could have a significant impact on the Company’s

prospects. However, the Kilgore Project is located in the State of Idaho which is a

mining friendly jurisdiction. It should be noted that the Kilgore Project is located

outside the jurisdiction of any national park or Indian Reservation and no endangered

species have been found in the area surrounding Kilgore. Further, drainage water

from the site does not pollute any drinking water reserves, further reducing this risk.

Delay in Production. Currently, the Company does not have any projects in the

production stage. The successful exploration and development of the Kilgore Project

holds the key to the growth of the Company and any delay in production could impact

its future prospects.

23

Otis Gold Corp.

Management and Board of Directors

The management and governance team is composed of a good balance of experienced

professionals, geologists and consultants accomplished in exploration, mining, planning,

implementing, directing and developing deposits across the globe. The team also

composes of professionals from Investment Banking, Corporate Finance and Business

Development.

Mr. Craig Lindsay, CEO, President and Director

Mr. Lindsay has a Bachelor of Commerce (Finance) degree from UBC, a Master of

Business Administration (Finance and International Business) degree from Dalhousie

University, and is a Chartered Financial Analyst. He has over 18 years of experience in

Investment Banking, Corporate Finance, and Business Development in Asia and North

America. His prior experience includes positions as a President and CEO of Magnum

Uranium Corp and Vice President (Corporate Finance and Investment Banking Group) at

PricewaterhouseCoopers LLP, founding Director of Malasapina Capital Ltd and Chairman

of the Family Services of Greater Vancouver. Presently, he is a Director and immediate

past President of the Hong Kong – Canada Business Association (Vancouver Section),

member of the Leadership Council of Dalhousie University’s “Bold Ambitions” capital

campaign and a Director of Tarsis Resources Ltd, Archer Petroleum, and Philippine

Metals Inc.

Mr. Mitch Bernardi, Chief Geologist

Mr. Bernardi holds a Master of Science (Geology - Magna Cum Laude) degree from

Western Washington University and undertook a University Fellowship at Ohio State

University. He has over 30 years of experience in the mining industry and has worked at

Echo Bay Mines (Sr. Geologist), Cyprus Metals Exploration, Meridian Minerals, Unocal -

Molycorp, Inc, Latitude Minerals, Amoco Minerals and Magnum Uranium Corp. He has

also been a project leader or co-discoverer of various projects such as Kilgore gold

deposit (706,000 oz Au), Coulterville gold Project (70,000 oz Au), Crypto zinc deposits

(6.01 million tons @8.68% sulfide zinc), Pan gold deposit (400,000 oz Au), Santiam

copper breccia pipe, and the Blue Hill Creek gold/silver deposit (235,000 oz Au).

Dr. John Carden, Consulting Geologist & Board Advisor

Dr. Carden has a PhD in Geology from the Geophysical Institute, University of Alaska, and

a Masters in Geology from Kent State University. He is a Licensed Geologist in the State

of Washington, a Fellow of the Society of Economic Geologists, and a member of the

American Institute of Professional Geologists. He has over 30 years of experience in

exploration management, teaching, and research. In the past, he has worked at Echo Bay

Mines for 12 years and headed a group of 2 district geologists, 8 senior geologists, and a

GIS specialist and was responsible for generating 35 funded projects some of which

include Lamefoot gold deposit (600,000 oz Au) and Easy Junior gold deposit (250,000 oz

Au). He has also acted as a consultant for some gold projects such as Corex Gold Corp

and Paramount Gold and Silver Corp. Presently, Dr. Carden is a Director of Paramount

Gold and Silver Corp. (NYSE: PZG).

Dr. Donald E. Ranta, Director

Dr. Ranta has a PhD and is a professional geoscientist. He is a mining exploration and

development executive involved in planning, implementing and directing exploration and

acquisitions across the globe. Some of the successful projects he has worked on include

McDonald gold ore (Montana), Santa Gertrudis gold ore (Mexico), Paradones Amarillos

(California), Kilgore (Idaho), Seven-Up Pete (Montana), Mexico Dolores gold-silver

(Mexico), Youga gold (Burkina Faso's) and Kuranakh gold deposits (Russia). During his

24

Otis Gold Corp.

tenure, he was a Vice President of Exploration for Echo Bay Mines and Manager/Vice

President for North American Exploration at Phelps Dodge Mining Company. He is a

former Vice President, Finance and board member of the American Institute of Mining,

Metallurgical, and Petroleum Engineers (AIME) and former President and Board Member

of the Society for Mining, Metallurgy, and Exploration (SME). Presently, he is the

Chairman of Rare Element Resources (TSX: RES).

Dr. Roger Norwich, Director

Dr. Norwich holds a Bachelor of Arts (Geology and Archaeology), MB Bachelor of

Medicine and ChB Bachelor of Surgery degrees from Manchester University. He has prior

experience as an oil exploration Geologist for Texaco and was a founding Director of

Mexican Silver Mines Ltd which was merged with Rio Alto Mining Limited (TSX: RIO).

Presently, he is a non-Executive Chairman of Grupo Minero Panuco, an Independent

Director of Rio Alto, and Director of Inkron Limited.

Mr. Charles W. (“Bill”) Reed, Director

Mr. Reed has a Bachelor of Science (Mineralogy) degree from the University of Utah and

is a Registered Professional Geologist in the State of Utah. He has past experience as

Vice President of Exploration for Paramount Gold and Silver Corp, Chief Geologist -

Mexico for Minera Hecla SA de CV (a subsidiary of Hecla Mining), Regional Geologist -

Mexico and Central America, for Echo Bay Exploration. Some of the projects that he has

worked on include detailed exploration at Noche Buena Project (Sonora) and San

Sebastian silver and gold mine (Durango), discovery and drilling of the Don Sergio vein,

identification of potential of the Dolores mining district (Mexico) and recommendation of

acquisitions that led to the discovery of more than 2.5 million oz of gold and 44 million oz

of silver. Presently, he is a Director of Empire Capital Ltd.

Mr. Norman Eyolfson, Director

Mr. Eyolfson is an entrepreneur with significant experience in the mining industry. In the

past 15 years, he has been actively involved in the public markets. Formerly, served as

President of Latitude Minerals Corp and has been a board member of Corex Gold Corp

and Magnum Uranium Corp where he was instrumental in overseeing the Magnum

Uranium Corp-Energy Fuels Inc amalgamation. Currently, Mr. Eyolfson currently sits on

the Board of Directors of Otis Gold Corp. and Empire Capital Corp.

Mr. Sean Mitchell, Director

Mr. Mitchell holds a Bachelor of Commerce (Finance) degree from University of British

Columbia. Prior to joining Otis Gold in 2007, he has worked at Mattmar Minerals Inc, Fii

International Inc, and American Eagle Energy Inc. He has approximately 16 years of

experience in business, specifically in corporate financing and investment banking

activities. xviii

25

Otis Gold Corp.

Disclaimer

Some of the information in this report relates to future events or future business and

financial performance. Such statements constitute forward-looking information within the

meaning of the Private Securities Litigation Act of 1995. Such statements can be only

estimations and the actual events or results may differ from those discussed due to,

among other things, the risks described in Otis Gold Corp. reports. The content of this

report with respect to Otis Gold Corp., Inc has been compiled primarily from

consultations and, information provided by Otis Gold Corp., Inc and information available

to the public released by Otis Gold Corp., Inc through news releases and SEC (if

applicable) or other actual government regulatory filings. Although RBMG may verify

certain aspects of information provided to it, Otis Gold Corp., Inc is solely responsible for

the accuracy of that information. Information as to other companies has been prepared

from publicly available information and has not been independently verified by Otis Gold

Corp., Inc or RBMG. Certain summaries of scientific or other activities and outcomes

have been condensed to aid the reader in gaining a general understanding. For more

complete information about Otis Gold Corp., Inc, the reader is directed to the Company's

website at http://www.otisgold.com. RBMG is an equity research and financial

communications firm the operations of which seek to increase investor awareness to the

small cap community. RBMG research analysts do not invest in or own shares of

companies analyzed and reported on by them. RBMG is not responsible for any claims

or losses sustained by an investor resulting from any of its reports, company profiles or

in any other investor relations materials disseminated by them. This report is published

solely for informational purposes and is not to be construed as advice designed to meet

the investment needs of any particular investor, or as an offer to sell, or the solicitation of

an offer to buy any security in any state. Investing in the Stock Market based on past

performance does not guarantee future performance. This report is not to be copied,

transmitted, displayed, distributed (for compensation or otherwise), or altered in any way

without RBMG's prior written consent. RBMG is not compensated for the analytical

research and evaluation services that were performed in connection with the preparation

of this report for Otis Gold Corp., Inc; but RBMG has received compensation (under

$16,000) in exchange for other segregated services.

We strongly urge all investors to conduct their own research before making any

investment decision.

26

Otis Gold Corp.

Sources

i http://www.atna.com/i/pdf/2012_Briggs_NI43_101_final.pdf

ii http://www.kinross.com/pdf/operations/Technical-Report-Round-Mountain.pdf

iii Gold Demand Trends Report (Q3 2012), World Gold Council

iv Gold Demand Trends Report (Q3 2012), World Gold Council

v Gold Demand Trends Report (Q3 2012), World Gold Council

vi Gold Demand Trends Report (Q3 2012), World Gold Council

vii Gold Demand Trends Report (Q3 2012), World Gold Council

viii Gold Demand Trends Report (Q3 2012), World Gold Council

ix Gold Demand Trends Report (Q3 2012), World Gold Council

x Gold Demand Trends Report (Q4 2011), World Gold Council

xi Gold Demand Trends Report (Q4 2011), World Gold Council

xiihttp://www.gold.org/investment/why_how_and_where/why_invest/demand_and_supply/

xiii http://www.marketwatch.com/story/china-2015-gold-output-likely-450-tons-ministry-2012-11-26-34855517

xivhttp://www.gold.org/investment/why_how_and_where/why_invest/demand_and_supply/

xv http://www.gold.org/download/value/stats/statistics/xls/gold_prices.xls

xvi http://www.bloomberg.com/news/2013-01-16/miners-may-pay-u-s-more-in-royalties-under-1872-overhaul.html

xvii Bloomberg

xviiihttp://investing.businessweek.com/research/stocks/people/person.asp?personId=20644412&ticker=OOO:CN&pre

viousCapId=36765668&previousTitle=OTIS%20GOLD%20CORP