Mr. Richmond Graham reports

BANYAN GOLD ANNOUNCES CLOSING OF $1.2 MILLION FINANCING

Banyan Gold Corp. has filed for approval of its recently announced $1.2-million non-brokered private placement (refer to the news releases of Aug. 9 and Aug. 11).

The filing will consist of 8,157,349 flow-through shares at a price of 7.5 cents per flow-through share for gross proceeds of $611,801.18. A further 9,049,211 hard units at 6.5 cents per unit for gross proceeds of $588,198.72 will be issued. Each unit consists of one common share and one-half of a common share purchase warrant, each full warrant being exercisable for a period of 24 months from closing into one common share at a price of 8.5 cents.

Insiders participated in the financing for $140,280 or 11.7 per cent. Finders' fees of $14,101.56 will be payable on the financing.

Funds raised from the financing will be applied to the evaluation of acquisitions, general and administrative costs, and exploration on Banyan's flagship Hyland project.

"We are pleased with the strong market response to fill our financing in time for Banyan to execute the 2016 field program at the Hyland project," said Tara Christie, president and chief executive officer. "The response to the financing demonstrates the strength of our team and quality of our project."

Banyan owns the Hyland gold project in Yukon along the southeast end of the Tintina gold belt. The Main zone, at a 0.6-gram-per-tonne-gold-equivalent cut-off, hosts a National Instrument 43-101-compliant inferred resource of 12,503,994 tonnes containing 361,692 ounces gold at 0.9 g/t and 2,248,948 ounces silver at 5.59 g/t for 396,468 AuEq ounces.

We seek Safe Harbor.