Liberty Gold Corp T.LGD

Pilot Gold Inc.'s Management’s Discussion and Analysis

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According to Pilot Gold Inc.'s Management’s Discussion and Analysis for the six months ended June 30, 2015:

https://is.gd/Yn7OJ1

HIGHLIGHTS THROUGH THE SECOND QUARTER AND SIGNIFICANT SUBSEQUENT EVENTS

TV Tower

– Commenced the 2015 drill campaign, focused on advancing and delineating the district scale copper-gold porphyry and oxide gold systems identified on the property to date.

– Completed the earn-in to a 60% interest in the project.

Kinsley

– Reported initial results from the 2015 program2, including: – The discovery of a new zone of gold mineralization located 150 metres east of the high-grade Western Flank zone with an interval of 2.34 g/t gold ("Au") over 9.1 m, and 3.46 g/t Au over 18.3 m, including 13.7 g/t Au over 3.0 m in drill hole PK208.

– Additional metallurgical results that demonstrate that Kinsley’s upper host rock horizon, the Dunderberg shale, can produce concentrates through flotation, with very-good to excellent gold recoveries. These results are comparable to those reported in 2014 from metallurgical work on the lower host rock horizon, the Secret Canyon shale, indicating the potential for low capital cost mining and processing scenarios at Kinsley3.

Halilaa

– Released a revised PEA for the Halilaa copper-gold porphyry deposit that generates a $474 million after-tax NPV7%, provides a 43% after-tax IRR with after-tax cash flows of $802.9 million life of mine. The project, as outlined in the Revised Halilaa PEA is relatively insensitive to changes in commodity and exchange rates, requires modest pre-production capital expenditure; and yields a payback period (after-tax) of 1.3 years4.

OUTLOOK

Despite deteriorating market conditions and the consequential reduction to certain of the Company’s exploration programs, management believes there is strong potential for further discoveries, and value creation at its projects in Turkey and Nevada.

Although our conviction in the importance of executing well-planned, efficient exploration and development programs remains unchanged, management recognizes the need to safeguard the Company’s treasury and advance our programs with measured steps. Accordingly, we will continue to assess the strategic importance, opportunity and cost of planned exploration and development programs at each of Pilot Gold’s material project interests, and may revise the scope of planned programs. Notwithstanding this measured approach, we expect the Company’s 2015 global work program will continue to generate ongoing news for the balance of the year.

With a working capital balance of approximately $10.17 million (as at the date of this MD&A) the Company is fully financed and well positioned to continue making discoveries and building value on its key properties, through the prudent allocation of capital. During the six months ended June 30, 2015, we incurred $4.15 million in cash exploration and administration expenditures (approved 2015 annual budget: $10.87 million).

TV Tower

TV Tower has developed into a key project for the Company and is now owned 60% by Pilot Gold. Our focus at TV Tower in 2015 is the expansion of the footprint of the two copper-gold porphyry discoveries in the southern part of the property. Drilling and preliminary metallurgical studies are currently underway, with results pending.

Our joint venture partner is funding its 40%, pro-rata share of the exploration budget at TV Tower, resulting in a more comprehensive program at a lower overall cost to Pilot Gold than was possible through the Earn-in period. Although we continue to assess market conditions and results, and have been adjusting our program accordingly, our approved program and budget currently includes up to 20,000 metres of drilling. We anticipate dividing the drill program into more than one phase, with an appropriate recess to analyse results and review market conditions.

Kinsley

Phase 1 of a limited drill campaign at Kinsley was recently completed, with one reverse circulation ("RC") drill rig focused on drilling at new exploration targets in the west-central part of the property. We are currently completing detailed interpretation, 3D modelling and target refinement ahead of the next phase of drilling, with a focus on the historic mine area and the newly discovered zone east of the Western Flank. We have deferred drilling on the as-yet untested Kinsley North claims while we focus on discovering and delineating additional gold mineralization near the Western Flank and the historical mine area.

Our joint venture partner is funding its 20.9%, pro-rata share of the approved $2.0 million exploration budget for 2015. We expect to execute a measured and balanced program, cognizant of market conditions through the remainder of the year. Results from several drill holes completed as part of Phase 1 are pending.

Halilaa

Pilot Gold expects to continue discussing alternatives with Teck Resources Limited ("Teck"), our partner at Halilaa, and various third-parties to unlock the value and potential of this robust development opportunity.