Mr. Paul Geddes reports

BGM INTERSECTS 13.63 G/T AU OVER 14.55 METRES AT SHAFT ZONE

Barkerville Gold Mines Ltd. has made a new discovery from the continuing 130,000-metre phase 2 Island Mountain exploration drilling program at the company's flagship Cariboo gold project. The company is currently exploring and delineating the Valley zone with four drill rigs. Detailed drilling results, a drill hole location plan map, level plan and longitudinal section are presented on the company's website.

New veining intersected at depth at Mosquito Creek

Located at a vertical depth of 280 metres below surface, drill hole IM-17-081 intersected a new veining occurrence averaging 23.31 grams per tonne gold over 7.80 metres. This veining occurs in the largely untested area between the former Aurum and Mosquito Creek mines. More downhole, at a vertical depth of 400 metres below surface, a second vein set grading 7.43 g/t Au over two metres was also intersected. Because of the lack of drilling at this depth, these two occurrences are open for expansion.

Shaft zone expands

Drill hole IM-17-085 has intersected series of veins averaging 13.63 g/t Au over 14.55 metres at a vertical depth of 250 metres below surface in the Shaft zone. This intersection occurs 45 metres along vein strike of previously reported drill hole IM-17-036 which graded 16.96 g/t Au over 5.15 metres hosted in an analogous vein set. Again, this new occurrence is open for expansion in all directions.

The geometry and hence true width of these mineralized intercepts cannot be assuredly concluded at this time based on the information available.

"Our pragmatic and disciplined exploration approach of drill testing the Shaft and Mosquito Creek zones on aggressively spaced 100-metre drill centres to determine the extents of the mineralized system is consistently generating new zones of veining on Island Mountain," remarked Paul Geddes, PGeo, the company's vice-president, exploration. "Guided by our technical team's geological understanding of the controls on mineralization at the Cariboo gold project, our success rate has increased dramatically and we are eager to begin an infill drilling program on these new targets while still advancing the target pipeline with aggressively spaced exploratory drilling in this large gold system."

About the phase 2 program

The 130,000-metre 2017 phase 2 exploratory and delineation drill program on Island Mountain is intended to determine the extent of the vein systems that were historically never explored, and is aimed at discovering new vein systems and sulphide replacement bodies that will ultimately inform a maiden resource at Island Mountain. Seven drill rigs are currently operating on Island Mountain, with an eighth rig testing for additional mineralization below the former Aurum and Cariboo gold quartz mines which have never been explored since mining operations ceased about 1960.

Qualified persons

Exploration activities at the Cariboo gold project are administered on-site by the company's exploration manager, Maggie Layman, PGeo. As per National Instrument 43-101 standards of disclosure for mineral projects, Mr. Geddes is the qualified person for the company and has prepared, validated and approved the technical and scientific content of this news release. The company strictly adheres to CIM (Canadian Institute of Mining, Metallurgy and Petroleum) best practices guidelines in conducting, documenting and reporting its exploration activities on the Cariboo gold project.

Quality assurance/quality control

Once received from the drill and processed, all drill core samples are sawn in half, labelled and bagged. The remaining drill core is subsequently stored on-site at the company's secure facility in Wells, B.C. Numbered security tags are applied to lab shipments for chain-of-custody requirements. The company inserts quality control (QC) samples at regular intervals in the sample stream, including blanks and reference materials with all sample shipments to monitor laboratory performance. The QA/QC program was designed and approved by Lynda Bloom, PGeo, of Analytical Solutions Ltd., and is overseen by the company's qualified person, Mr. Geddes.

Drill core samples are submitted to ALS Geochemistry's analytical facility in North Vancouver, B.C., for preparation and analysis. The ALS facility is accredited to the ISO/IEC 17025 standard for gold assays and all analytical methods include quality control materials at set frequencies with established data acceptance criteria. The entire sample is crushed and 250 grams are pulverized. Analysis for gold is by 50-gram fire assay fusion with atomic absorption (AAS) finish with a lower limit of 0.01 part per million and upper limit of 100 ppm. Samples with gold assays greater than 100 ppm are reanalyzed using a 1,000 g screen metallic fire assay. A selected number of samples are also analyzed using a 48-multielemental geochemical package by a four-acid digestion, followed by inductively coupled plasma atomic emission spectroscopy (ICP-AES) and inductively coupled plasma mass spectroscopy (ICP-MS).

About Barkerville Gold Mines Ltd.

The company is focused on developing its extensive land package located in the historical Cariboo mining district of central British Columbia. Barkerville's mineral tenures cover 1,164 square kilometres along a strike length of 60 kilometres which includes several past-producing hard-rock mines of the historical Barkerville gold mining camp near the town of Wells, B.C. The QR project, located approximately 110 kilometres by highway and all-weather road from Wells, was acquired by Barkerville in 2010 and boasts a fully permitted 900-tonne-per-day gold milling and tailings facility. Test mining of the Bonanza Ledge open pit was completed in March, 2015, with 91,489 tonnes of ore milled, producing 25,464 ounces of gold.

           LENGTH-WEIGHTED GOLD COMPOSITES FOR ISLAND 
                  MOUNTAIN PHASE 2 DRILL HOLES
     
Hole              From          To       Core length          Au 
ID                 (m)         (m)               (m)       (g/t)

IM-17-079        29.85       30.70              0.85        8.89
IM-17-079       249.40      249.95              0.55        5.65
IM-17-080       148.00      152.30              4.30        4.82
incl.           151.20      151.75              0.55       20.20
IM-17-081       175.30      176.30              1.00       10.90
IM-17-081       257.50      258.00              0.50       28.10
IM-17-081       283.70      291.50              7.80       23.31
incl.           283.70      284.50              0.80       10.15
and             286.10      287.60              1.50       25.40
and             287.60      288.50              0.90       18.25
and             288.50      289.50              1.00       55.70
and             289.50      290.15              0.65       31.50
and             290.15      291.00              0.85       48.20
IM-17-081       402.50      404.50              2.00        7.43
IM-17-082       113.00      113.50              0.50       47.60
IM-17-082       139.60      140.15              0.55        6.03
IM-17-082       178.85      183.10              4.25        5.60
incl.           179.90      180.90              1.00       14.80
IM-17-082       200.30      200.80              0.50       21.10
IM-17-082       209.20      209.70              0.50       28.00
IM-17-082       297.60      298.80              1.20        5.56
IM-17-083        20.65       21.15              0.50       11.30
IM-17-083       216.10      216.60              0.50        8.28
IM-17-083       221.65      229.25              7.60        5.78
incl.           221.65      222.30              0.65       21.90
and             223.50      224.00              0.50       18.05
and             228.75      229.25              0.50       29.90
IM-17-084                                                    NSA
IM-17-085       291.60      292.30              0.70       21.40
IM-17-085       366.45      381.00             14.55       13.63
incl.           367.40      368.45              1.05       32.60
and             369.70      370.20              0.50       26.80
and             377.00      377.85              0.85      155.00
and             378.65      379.15              0.50       10.55
  

True widths cannot be accurately determined from the information available; therefore, core lengths are reported. Rock not recovered by drilling was assigned zero grade. Top cuts have not been applied to high-grade assays.

We seek Safe Harbor.