Mr. Darin Labrenz reports

PURE GOLD INTERSECTS 31.3 G/T GOLD OVER 3.7 METRES INCLUDING 54.1 G/T GOLD OVER 2.0 METRES AT THE MCVEIGH HORIZON, MADSEN GOLD PROJECT

Pure Gold Mining Inc. has released additional drill results from the McVeigh horizon, located on the company's 100-per-cent-owned Madsen gold project. Results reported herein represent the final set of results from the initial 16,000-metre program, which is now complete. As previously announced, the company has begun an expanded exploration program that will include an additional 35,000 metres of drilling. The continuing work is designed to test and advance new interpretations of near-surface targets in close proximity to the existing mining infrastructure.

"Drilling to date indicates that the McVeigh horizon is open for resource expansion along strike and at depth, below historical mining depths of 230 metres," stated Darin Labrenz, president and chief executive officer of Pure Gold. "The opportunity for resource growth at relatively shallow depths is rare in a historic mining project such as this. We believe the McVeigh horizon has similar potential to the parallel Austin horizon which was mined from surface to a depth of 1,200 metres over a two-kilometre strike length."

Highlights from infill and step-out drilling on the one-kilometre-long McVeigh horizon include:

• 40.1 grams per tonne gold over 1.2 metres in hole PG16-110;
• 31.3 g/t gold over 3.7 metres in hole PG16-112;
• Including 54.1 g/t gold over two metres;
• 14.2 g/t gold over five metres in hole PG16-122;
• Including 28.5 g/t gold over 2.1 metres.

New assay results from select drill holes testing the McVeigh horizon are outlined in the table.

                     MADSEN DRILL RESULTS

Hole ID          From           To       Length         Gold
                   (m)          (m)          (m)        (g/t)

PG16-108        172.0        180.2          8.2          6.0
incl.           174.0        178.0          4.0         10.5
PG16-110        291.5        292.7          1.2         40.1
PG16-111        202.7        204.7          2.0          5.2
PG16-112        281.3        285.0          3.7         31.3
incl.           281.3        283.3          2.0         54.1
PG16-115        166.7        168.7          2.0          7.5
PG16-117        275.7        278.9          3.2          5.7
PG16-117        289.0        291.5          2.5          8.5
incl.           290.5        291.5          1.0         20.1
PG16-117        320.0        322.0          2.0         11.5
PG16-119        123.1        130.0          6.9          4.4
incl.           124.0        127.2          3.2          7.1
PG16-121        140.5        146.3          5.8          5.7
incl.           142.0        144.8          2.8         10.2
PG16-122          8.3          9.3          1.0         30.1
PG16-122        128.5        133.5          5.0         14.2
incl.           130.6        132.8          2.1         28.5
   
(i) Assay composites were calculated using uncut assays and 
are reported as drilled widths and interpreted to vary 
between 55 per cent and 90 per cent of true widths.

The current targeting strategy is focused on extending known and discovering new shoots of gold mineralization within the McVeigh horizon along a one-kilometre corridor. The results of drilling confirm that the McVeigh horizon is a fold continuation of the Austin horizon with the mineralization of the McVeigh horizon sharing the same characteristics and similar widths and grades as the parallel Austin horizon, which produced over two million ounces of gold from surface to a depth of 1,200 metres.

Pure Gold has initiated an expansion of the 2016 exploration program, including an additional 30,000 metres of drilling targeting downplunge extensions of gold mineralization below the historical mine workings in the McVeigh horizon and 5,000 metres on satellite target zones. The company is further accelerating this program with the addition of a third drill rig. Results from the program will continue to be released as available.

For a long section showing the McVeigh horizon drill results and 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 g/t 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 gold (in 3.24 million tonnes) and an inferred resource of 297,000 ounces gold at 11.74 g/t gold (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 the geology and 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, as well as two significant historic underground mines. 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 g 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.