Mr. Darin Labrenz reports

PURE GOLD INTERSECTS 76.0 G/T GOLD OVER 2.1 METRES AT RUSSET SOUTH, MADSEN

Pure Gold Mining Inc. has released results from drilling at the Russet South target located at the company's 100-per-cent-owned Madsen gold project. These holes are part of the continuing 77,000-metre drill program designed to expand the high-grade Austin and McVeigh gold resource and to test and build continuity of high-grade gold mineralization at Russet South and other satellite targets. Three drill rigs are currently testing the McVeigh and Austin horizons and one rig is testing satellite targets.

Highlights from drilling at the Russet South target include:

• 76.0 grams per tonne gold over 2.1 metres in hole PG16-233:
  • Including 132.0 g/t gold over 1.1 metres.
• 15.9 g/t gold over one metre in hole PG16-241;
• 6.6 g/t gold over 9.9 metres in hole PG16-243:
  • Including 46.4 g/t gold over one metre.

"These results demonstrate the near-surface potential of the high-grade gold system at Russet South," stated Darin Labrenz, president and chief executive officer of Pure Gold. "Our drilling to date has returned an exceptional hit ratio with nearly two-thirds of the drill holes at Russet returning gold-mineralized quartz veins. The mineral system at Russet South is related in setting and style to high-grade mineralization at Madsen, and the continuity encountered highlights the potential to establish a near-surface resource within a short distance of the permitted mine infrastructure."

Drilling at the Madsen gold project has successfully identified and expanded the footprint of gold mineralization in five related zones, all of which are open for resource expansion. Mineralization located near surface at Russet South shares a similar geologic environment to Madsen's 8 zone resource, situated 1.6 kilometres downdip on the same geologic contact. Similarly, recent drilling at the Starratt target has returned alteration and gold mineralization that also suggest a direct relationship to mineralization present at Madsen, including the A3 target within the Austin horizon, and the south-plunging gold mineralization present at the McVeigh horizon. Together these targets define a five-kilometre-long gold system that is open for drill expansion. Currently, four drill rigs are active on the five-kilometre trend, with three drill rigs prioritized on potential resource expansion of the Austin and McVeigh horizons and a fourth rig targeting gold mineralization at the Starratt target.

Drill results summary

          NEW ASSAY RESULTS FROM SELECT DRILL HOLES  

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

PG16-230               71.5      72.5         1.0         3.2
PG16-233              102.9     105.0         2.1        76.0
incl.                 103.9     105.0         1.1       132.0
PG16-234              192.0     194.0         2.0         7.6
                      198.0     201.0         3.0         2.9
PG16-239              172.3     176.6         4.3         5.2
                      242.0     244.0         2.0         7.3
PG16-241              153.5     154.5         1.0        15.9
PG16-243               88.5      89.5         1.0        13.9
                      161.3     171.2         9.9         6.6
incl.                 165.5     166.5         1.0        46.4
PG16-246                3.2       5.0         1.8         5.7

Note
(i) Assay composites were calculated using uncut assays and 
are reported as drilled widths and interpreted to vary 
between 50 per cent and 97 per cent of true widths.                                                                 

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 current 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.

Note

(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 spectroscopy 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 (certified standards and uncertified blanks), along with field, prep and pulp duplicates, are inserted on a regular basis.

Qualified persons and NI 43-101 disclosure

Phil Smerchanski, 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.

We seek Safe Harbor.