Mr. J. Frank Callaghan reports

BARKERVILLE PROVIDES UPDATE ON ITS TECHNICAL REVIEW

Barkerville Gold Mines Ltd. has provided an update to its shareholders on the status of its response to the cease trade order issued by the B.C. Securities Commission as disclosed in the company's press release dated Aug. 15, 2012.

The company is advised that the CTO will remain in place until the company files a technical report acceptable to the BCSC and addresses all technical disclosure concerns.

Further to the news release of June 6, 2012, the company confirms that it has recently engaged Snowden Mining Industry Consultants Pty. to assist the company in satisfying the conditions of the CTO and continues to have a dialogue with the BCSC in an effort to satisfy its concerns.

As part of the technical review requested by Snowden, the company advises that it has completed 14 surface diamond drill holes, of which nine were completed as twin holes, totalling 2,759.4 metres (9,053.1 feet) on Cow Mountain at the Cariboo gold project near Wells, central B.C., between Sept. 22 and Oct. 14, 2012. The total footage includes five drill holes abandoned due to hitting shafts and/or underground workings before target. The drilling was done respectively by four drill rigs of three drill contractors, namely Standard Drilling & Engineering Ltd. of Vancouver, B.C. (two drill rigs); Armstrong Drilling Ltd. of Armstrong, B.C. (one drill rig); and Lone Peak Drilling of Kimberley, B.C. (one drill rig). All the drill holes are being logged and sampled, including measuring bulk density of the drill core. Assay results of these drill holes will be released when available.

QR mine and mill

Gold mining operations have begun at the company's QR mine with the awarding of the mining contract to A.L. Sims & Son Ltd. The surface of the West zone has been stripped to bedrock, and drilling and blasting are under way. The first bench blast was completed last week. It has been sampled, the assay results are pending, and the surface zone will be drilled and blasted this coming week. Once this is mucked out, the focus will shift to mining the 962 area stopes underground.

In addition to contract mining, A.L. Sims & Sons has commenced the raising of the tailings storage facility dams at the QR mine site pursuant to permit No. M-198. The access road to the North dam has been widened, and access roads to clay borrow pits and sandy till pits have been completed. Dam raising has been continuing for three weeks.

Further, pursuant to permit No. M-198, "If the construction of the tailings dam raise to elevation 1,029.3 metres is completed to the satisfaction of the chief inspector by Sept. 30, 2012, the permittee will not be required to post the additional security instalment in the amount of the $1.5-million that would otherwise be due on that date." The chief inspector of mines has extended this date as work has commenced.

"If the work and plans required under permit condition B.3 (a) of this permit have been completed to the satisfaction of the chief inspector by Dec. 15, 2012, the permittee will not be required to post the additional security instalment in the amount of $4.14-million that would otherwise be due on that date."

"By Dec. 31, 2012, the permittee shall carry out all recommendations of the Klohn Crippen report entitled, "Tailings dam seepage assessment," dated Jan. 12, 2012, and provide a summary report to the chief inspector. The summary report shall include the results of the field program and updated analysis, modelling, conclusions, and recommendations for achieving seepage reduction sufficient to maintain the approved design height of a water cover over PAG wastes. The report shall also include a detailed third party cost estimate to complete the mitigation work and an implementation schedule."

In addition to the four drill holes completed in 2011, the company completed four HQ diamond drill water test holes of approximately 100 metres each during the last part of August, 2012, on the tailings dam. These drill holes are part of the 2012 nine-hole program designed to be grouted to minimize dam seepage pursuant to B3 (a).

The installation of an approximate 700-metre three-phase power line to the West zone has been completed, which eliminates the need for diesel-powered generators. Delivery of transformers is expected this week. Power is required for dewatering the workings and underground mining.

Bonanza ledge

Upon completion of the QR dam raise expected in early November, 2012, mining will begin at Bonanza ledge (see news release dated Dec. 6, 2011), now fully permitted.

The technical information in this news release has been reviewed and approved by company chief geologist, Jim Yin, PhD, PGeo, a qualified person as defined in National Instrument 43-101.

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