Mr. Frank Callaghan reports

BARKERVILLE GOLD MINES LTD. PROJECT UPDATE

Barkerville Gold Mines Ltd. has provided a project update on its Gold Quartz, Bonanza Ledge and historic Island Mountain mine projects near Wells, B.C., and the QR mine near Quesnel, B.C. The company is working toward completing recommendations put forward in the technical report dated Dec. 31, 2012 (see news release dated June 19, 2013).

Gold Quartz mine/Cow Mountain

Jim Yin, PhD, PGeo, chief geologist, reports that 6,817 infill drill core samples totalling approximately 43,400 feet have been collected from exactly 100 out of 250 diamond drill holes conducted on Cow Mountain between 2007 and 2011 that were never completely assayed. Of these 6,817 infill core samples, 6,535 have been cut and shipped to Acme Analytical Laboratories Ltd. for screen metallic assay. Of the 6,535 samples in the lab, 4,802 have been analyzed and 1,733 are pending.

In addition, 4,132 reject samples of diamond drill holes conducted on Cow Mountain in 2011 have been assembled and will be shipped to the lab for metallic reassays. As noted in Barkerville's recently published technical report, screen metallic reassays can be expected to increase previously published grades by 10 per cent to 15 per cent. Results of the assaying and reassaying described above will be released when the analysis has been completed.

Detailed metallurgical testwork is scheduled to begin in the fourth quarter 2013 on Cow Mountain mineralized samples. This work will involve a number of processes, with a focus on producing flotation concentrate as potential feed to the existing QR leach circuit. The generated information would be to standards compliant for preliminary-economic-assessment-level reporting.

Historic data including various reports, and old plan and level maps for Barkerville, Cow and Island Mountain are being digitized and added to the company's database.

Bonanza Ledge mine/Barkerville Mountain

Tom Hatton, mine superintendent for Wells, reports that the sedimentation dam is nearing completion in Lowhee Creek; construction is by Roktek Services Inc. with supervision and design by Knight Piesold Ltd. The balance of the clearing and stump chipping is under way. Site preparations have begun to enable mining of the Bonanza Ledge deposit. All other preparations to mine Bonanza Ledge and truck ore to the QR mill are complete.

Snowden Mining Industry Consultants Inc. has been retained to provide a new model on the Bonanza Ledge open-pit mine.

The on-site demonstration of dry ore sorting technology is also planned as part of the Bonanza Ledge mine operation. It would be conducted to evaluate preconcentration using X-ray (DEXRT) technology on one-inch to two-inch crushed ore prior to transport to the QR mill for final processing.

Preliminary metallurgical studies were undertaken for the Gold Quartz and Bonanza Ledge projects beginning in 2011 and extending to earlier this year. The results to date indicate these mineralized samples responded well to conventional flotation and cyanide leaching procedures over a range of the deposit lithology and head grades. Generally gold recoveries exceeded 90 per cent.

Photos of operations at Bonanza Ledge are available on the company's website.

Island Mountain mine

As identified in the recently completed technical report, the historic Island Mountain mine is recognized by the company as a high-priority target for further evaluation. The Island Mountain mine target consists of a large historic database of surface and underground drilling, along with extensive historic underground workings along the Rainbow-Baker contact to a vertical depth of approximately 2,000 feet.

The company has retained mining consultant APEX Geoscience Ltd. to compile and validate all of the existing surface and subsurface data to enable the construction of a robust geological model for the Island Mountain mine that will lead to a resource estimate.

Jean Paulter, PGeo, Al Dorherty, PGeo, and Sean Dally, PGeo, have been retained by the company to assist in completing geological mapping and surface sampling across Island Mountain in order to achieve a better understanding of the Island Mountain mine geology. Large-scale trenching is in progress with over 450 channel samples having been collected to date.

Furthermore, 466 reject core samples from diamond drill holes completed between 1999 and 2005 have been assembled for screen metallic reassay analysis and will include quality assurance/quality control samples.

QR mine and mill

Kevin McMurren, mine manager, reports that the company is currently undertaking underground mining operations at the QR mine. Ore in two stopes is being accessed from development completed earlier this year in the West zone. Mining contractor Roktek Services Inc. is running two shifts per day, seven days per week. An estimated 4,000 tonnes of ore has been mined; transportation of the ore to the mill has started and is being stockpiled at a rate of 150 tonnes a round. Development mining is almost finished, longholing will start soon, and each blast will produce a few thousand tonnes.

Relisting

As reported in the news release dated Aug. 9, 2013, Barkerville is in the process of making application to the exchange to reinstate its common shares for trading. In connection with this process, the company is exploring further financing options, which may include such options as debt financing, forward gold sales or a gold streaming agreement. Barkerville will report on the progress of the reinstatement application and further financing options as information becomes available.

The company's new corporate presentation is now available on its website. The technical information in this news release has been reviewed and approved by the company's chief geologist, Jim Yin, PhD, PGeo, a qualified person as defined in National Instrument 43-101.

We seek Safe Harbor.