Mr. Darin Labrenz reports

PURE GOLD ANNOUNCES SUBSTANTIAL INCREASE TO 2016 EXPLORATION PROGRAM AT THE MADSEN GOLD PROJECT

Pure Gold Mining Inc. will increase its continuing 2016 exploration program with the addition of 26,000 metres of diamond drilling at the company's 100-per-cent-owned Madsen gold project. The fall drilling program will increase the total planned drilling for 2016 to approximately 77,000 metres.

"I am happy to announce another significant increase in our exploration program at Madsen this year," stated Darin Labrenz, president and chief executive officer of Pure Gold. "With a very successful exploration program and positive results to date in 2016, as well as a strong treasury position, we look forward to building on our accomplishments at Madsen. The addition of an autumn drill program allows us to continue to step out below shallow historic mine workings within the McVeigh and test the depth extents of the mineralization. With one of the highest-grade undeveloped gold resources in Canada, located in a well-endowed and proven mining district, Pure Gold is well positioned to continue to target significant growth potential at Madsen."

Planned $5.8-million fall drill program

The significant expansion to the continuing drill program will allow the company to continue its successful exploration at Madsen and carry on exploration to expand on the existing resource base. The fall drill program is anticipated to provide for continuous drilling through to December, 2016.

The planned $5.8-million increase to the 2016 budget will include:

• An additional 26,000 metres of diamond drilling focused on potential expansion of the McVeigh horizon at depth as well as growth from propertywide targets. Four drill rigs are currently active at Madsen -- three focused on the McVeigh horizon and a fourth on satellite targets;
• Initiation of the underground exploration program, including reopening of the portal, and connection of underground services for the decline which currently provides ramp access to the top 150 vertical metres of the McVeigh horizon;
• Completion of underground inspection to confirm condition of workings and ventilation requirements;
• Initiation of detailed underground mapping to confirm structural setting and characterize mineralization.

Appointment of Ken Donner as vice-president, operations

Pure Gold is also pleased to announce the addition of Mr. Donner as vice-president, operations. Mr. Donner will initially be focused on development management at Madsen, including the reopening of the existing McVeigh portal and rehabilitation of surface infrastructure. The company currently anticipates receiving all approvals to allow for reopening of the portal in calendar fourth quarter 2016.

Mr. Donner is a professional engineer with certification in professional project management and has 30 years of mining industry experience, including 20 years in senior management positions where he gained extensive knowledge in managing and operating underground mines. He was most recently with AMEC Foster Wheeler where he managed the construction of a new ventilation shaft for Newmont Mining's Leeville mine in Nevada. His previous roles include project manager of Brett Resources' Hammond Reef project and operations manager at Oceanagold's Macraes mine in New Zealand. In addition, Mr. Donner has worked as underground manager at several mining operations and development projects including the New Afton, Snap Lake and Snip mines. Mr. Donner holds a certificate in project management from the University of Victoria, an MBA specializing in technology/engineering management from Bellevue City University and a geological engineering degree from the University of Windsor.

Pure Gold's 2016 exploration program is continuing with three drill rigs currently testing the McVeigh horizon and a fourth drill rig testing satellite targets, including Russet South. The previously announced 51,000 metres of drilling are anticipated to be completed by the end of September, 2016, of which 41,610 metres have been completed and released to date. The 2016 exploration program has now been expanded to include 77,000 metres of core drilling, with further results to be released as available.

For an overview long section showing the McVeigh horizon, a map showing exploration targets at Madsen and a complete list of 2016 drill results to date, 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 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 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 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 atomic absorption spectroscoopy 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 NI 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.

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