Mr. Darin Labrenz reports

PURE GOLD ANNOUNCES AGREEMENT TO SELL NON-CORE ASSETS TO PREMIER GOLD FOR $5 MILLION PLUS 1% NSR

Pure Gold Mining Inc. has entered into a binding letter of intent with Premier Gold Mines Ltd. to sell certain non-core claims currently owned by Pure Gold that are contiguous with Premier Gold's Hasaga property.

"In our view, this transaction is a logical step for both companies. It will provide Pure Gold with immediate cash and share consideration without diluting shareholders equity, which will continue to allow the company to devote funds to our highly prospective Madsen gold project," stated Darin Labrenz, president and chief executive officer of Pure Gold. "The sale also provides Pure Gold with continued exposure to the Buffalo claims via the net-smelter-return royalty."

The sale of 28 mining claims adjoining Premier Gold's Hasaga property represents approximately 10 per cent of the area held under the Madsen gold project and does not include any of the infrastructure or mineral resources associated with the Madsen mine, nor does it include any of the company's primary exploration targets. While the Buffalo claims are known to host gold mineralization on the margins of the Dome stock granodiorite, they do not host the mafic-ultramafic contact that Pure Gold has been successfully targeting for high-grade gold mineralization.

On closing it is anticipated that the company will have approximately $7.1-million in cash and short-term investments to continue to advance its exploration and development efforts at Madsen.

Transaction terms

Total consideration payable to Pure Gold will consist of:

1. Cash consideration of $2.5-million payable upon closing;
2. Share consideration totalling $2.5-million based on the 20-day volume-weighted average price of Premier Gold preceding closing;
3. A 1-per-cent NSR on the majority of the Buffalo claims divested. Premier Gold will have the right to acquire 50 per cent of the NSR for consideration of $1-million.

The sale is expected to close on or before Dec. 18, 2015, and is subject to certain conditions, including, but not limited to, the completion of definitive documentation and receipt of all necessary approvals, including the approval of the TSX Venture Exchange. All common shares of Premier Gold received in connection with the sale will be subject to a hold period in Canada of four months and one day from the date of issuance.

Macquarie Capital Markets Canada Ltd. is acting as financial adviser to Pure Gold with regard to the sale.

Exploration program for 2016

Pure Gold's exploration focus in 2016 will be to drill test and advance near-surface high-grade targets associated with the prospective mafic-ultramafic folded stratigraphy to the north and west of the historic mine workings, as well as advance evolving near-mine targets that have developed out of recent structural interpretation and modelling. The company will also continue engineering studies to assess the existing mining and milling infrastructure, and assess potential development opportunities within the existing resource base and nearby prospects. This engineering study will be utilized in designing additional drilling for the purpose of upgrading and expanding the current mineral resource.

Pure Gold is currently preparing for a minimum 6,000-metre winter drill program, designed to test prospective near-surface targets, commencing in January, 2016.

About Madsen

Madsen hosts an operational head frame, a permitted mill and tailings facility, and access to power, water and labour. The Madsen gold project has an indicated resource of 928,000 ounces gold at 8.93 grams per tonne gold (in 3.24 million tonnes) and an inferred resource of 297,000 ounces gold at 11.74 g/t Au (in 790,000 tonnes), and is situated in one of the most active exploration and mining camps in North America. In addition to the mineral resource, the Madsen gold project hosts a number of highly prospective exploration targets including the Fork zone and Russet South targets, where drilling in 2015 returned 15.0 g/t gold over five metres from hole PG15-028 and 39.1 g/t gold over 2.9 metres from hole PG15-031. Pure Gold believes the opportunity exists to advance these near-surface, high-grade exploration targets through the application of modern exploration science and a new understanding of the district.

Qualified persons and National Instrument 43-101 disclosure

Darren O'Brien, PGeo, vice-president, exploration, for the company, is the designated qualified person for this news release within the meaning of National Instrument 43-101, and has reviewed and verified that the technical information contained herein is accurate, and approves of the written disclosure of same.

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