Mr. Darin Labrenz reports

PURE GOLD ANNOUNCES SIGNIFICANT EXPANSION OF 2016 EXPLORATION PROGRAM AT MADSEN GOLD PROJECT

Pure Gold Mining Inc. has expanded its 2016 exploration program, including an additional 35,000 metres of diamond drilling, at the company's 100-per-cent-owned Madsen gold project. The expansion will increase the total drilling planned for 2016 to approximately 51,000 metres.

"Given our continued success, I am excited to announce the continuation of drilling at Madsen along with an increased exploration program," stated Darin Labrenz, president and chief executive officer of Pure Gold. "Drilling to date has confirmed our exploration model and has intersected gold mineralization within the McVeigh horizon along a one-kilometre-long corridor to a depth of 300 metres where it remains open to depth. Our expanded and accelerated drill program will primarily focus on testing downplunge extensions to high-grade gold mineralization within the McVeigh horizon where we believe there is strong potential to grow the resource and improve any possible future economics."

The planned $9.1-million expansion of the 2016 program will include:

• An additional 30,000-metre diamond drill program focused on the potential expansion of the McVeigh horizon. Two rigs are currently active at McVeigh and the company is moving to accelerate this drilling through the mobilization of a third rig;
• Approximately 5,000 metres of drilling at Russet South and other satellite targets with a goal of expanding the near-surface, high-grade mineralization discovered to date;
• Development of a plan to reopen the existing McVeigh portal and decline, allowing for inspection of the underground, as well as completion of detailed underground geological mapping and sampling to refine structural setting, characterize mineralization and aid in additional targeting at McVeigh;
• Continued surface geology mapping, soil and rock sampling, scientific review of historic data sets, and multidisciplinary analysis and refinement of targeting.

The Madsen mine produced 2.5 million ounces of gold from surface to a depth of 1,200 metres at a historic production rate of approximately 2,000 ounces of gold per vertical metre. Of this, the Austin horizon was the principal source of mine feed, with historic mining at the parallel McVeigh horizon limited to a maximum mining depth of 230 metres. The results of the drilling program to date in 2016 confirm that the McVeigh is a fold continuation of the Austin horizon with the mineralized shoots of the McVeigh horizon sharing the same characteristics, and similar widths and grades as the parallel Austin horizon. The expanded program will focus on the McVeigh horizon and potential resource expansion by testing the downward plunge of the high-grade shoots below the historical mining. A limited portion of this expanded drill program will also be allocated toward near-surface expansion of satellite targets, including the Russet South discovery, which is located 1.5 kilometres from the McVeigh horizon.

Further results are pending from the continuing drill program and will be released as received.

For a complete list of 2016 drill results to date, please visit the company's website.

About Madsen

The Madsen mine operated for over 36 years with historic production of 2.5 million ounces at an average grade of 9.9 grams per tonne gold. The Madsen gold project 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 g/t Au (in 3.24 million tonnes) and an inferred resource of 297,000 ounces gold at 11.74 g/t Au (in 790,000 tonnes)(1). The mineral resource is based on 13,624 drill holes, evenly dispersed throughout the mineral resource. A robust geologic model based on 27 levels of geological mapping and chip sampling provides a solid understanding of continuity of mineralization.

In addition to the mineral resource, the Madsen gold project hosts a number of highly prospective new discoveries including the Fork zone and Russet South targets. 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.

(1) See the National Instrument 43-101 technical report entitled "Technical Report on the Preliminary Economic Assessment For the Madsen Gold Project," prepared by Nordmin Engineering Ltd., dated effective April 20, 2016. Mineral resources are not mineral reserves and do not have demonstrated economic viability.

Quality assurance/quality control and core-sampling protocols

Drill core samples are submitted to ALS Minerals in Thunder Bay, Ont., for sample preparation by crushing to 70 per cent less than two millimetres a rotary split of one kilogram and pulverization of the split to better than 85 per cent passing 75 microns. Sample pulps are shipped to the ALS assay laboratory in North Vancouver, B.C., for gold analysis with a 30-gram fire assay and AAS finish (code Au-AA23). Samples returning greater than five g/t Au are reassayed with a gravimetric finish (code GRA21). Mineralized zones with visible gold are also analyzed by a one kg screen fire assay with screening to 100 microns. A duplicate 30 g fire assay is conducted on the screen undersize with assaying of the entire oversize fraction (code Au-SCR21). Control samples (accredited standards and non-accredited blanks) were inserted on a regular basis. Results are assessed for precision on a continuing basis.

Qualified persons and National Instrument 43-101 disclosure

Phil Smerchanski, PGeo, vice-president of 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.

We seek Safe Harbor.