Mr. J. Frank Callaghan reports

BARKERVILLE RESOLVES SHAREHOLDER PETITION RESPECTING AGM AND POURS GOLD BAR

The parties have recently reached an agreement to resolve the previously filed petition in the Supreme Court of British Columbia, which had requested that the court: (i) authorize the petitioners to call an annual general and special meeting of Barkerville Gold Mines Ltd.; (ii) authorize the petitioners to give notice of the meeting to the company's shareholders and to prepare an information circular in respect of the business of the meeting; (iii) authorize the petitioners to present a private placement proposal to the shareholders at the meeting; and (iv) appoint a shareholder of the company, or such other person the court may designate, to act as independent chair of the meeting.

The details of the agreement, which have now been incorporated into an order of the court, include:

1. The company's meeting for the year 2012 will be held at 1500-1055 West Georgia St., Vancouver, B.C., on April 16, 2013, at 10 a.m., as previously called by the company, in accordance with all applicable laws.
2. The meeting will be chaired by either Norman Anderson or David McMillan, both of whom are independent directors of the company, as the company may decide.
3. Due to the timing of the meeting, and subject to the following, the company has agreed to waive the relevant limitation period and put the petitioners' previously proposed private placement proposal, which must be provided to the company by no later than March 4, 2013, in the company's meeting management proxy circular, it being acknowledged and agreed that the inclusion of any such proposal will be subject to the petitioners first having been advised by the B.C. Securities Commission that it does not object to the company providing notice to the shareholders that the proposal will be considered and voted on at the meeting, or, if the BCSC does object, the petitioners shall have applied and obtained a partial revocation order from the BCSC to allow the company to give notice to the shareholders of the proposal and for such to be considered and voted on at the meeting.
4. The company will co-operate with the petitioners in obtaining such permission or authorization from the BCSC as may be required to permit the company to provide notice to the shareholders that the private placement proposal will be considered and voted on at the meeting.
5. By no later than March 4, 2013, the petitioners will provide the company with the names and biographical information of any proposed nominee directors the petitioners intend to support for election as directors of the company, who are not currently directors; however, such nominees, if any, will not be included in the company's meeting management proxy circular.

Technical review

The company reminds shareholders that its present cease trade order will remain in place until the company files a final National Instrument 43-101 technical report acceptable to the BCSC, which addresses all technical disclosure comments of the BCSC. As previously reported, as part of its BCSC response, the company engaged Snowden Mining Industry Consultants Pty. to assist in satisfying certain conditions of the BCSC underlying the CTO and, in particular, preparing an independent audit of the resource estimate provided for Cow Mountain, which was the subject of the company's original technical report, authored by Peter George of Geoex Ltd., which had been filed with the BCSC on Aug. 14, 2012. The company has been recently advised by each of Snowden and Geoex that they reasonably expect that a complete draft of their updated NI 43-101 report should be available for review by the company in the first week of February, such that the company reasonably expects that it might be in a position to respond to BCSC's technical disclosure comments and file a final and acceptable NI 43-101 report on SEDAR fully by the final week of February.

QR mine and mill

Kevin McMurren, mine manager, reports that the company poured a gold dore bar today and expects to receive revenue from the sale of the bar in approximately one week's time. The revenues received from the sale of gold dore bars are expected to provide additional working capital to the company through April, 2013.

Bonanza Ledge mine

Tom Hatton, mine superintendent for wells, reaffirms, as previously reported, that final clearing of the laydown area for Bonanza Ledge is completed, and stump tub grinding for reclamation is complete. Mining equipment, including excavators, cats and trucks used at the QR mine for the dam raise, was moved to Bonanza Ledge.

We seek Safe Harbor.