Mr. Charles Desjardins reports

PISTOL BAY MINING OPTIONS JOY NORTH PROPERTY, ONTARIO

Pistol Bay Mining Inc. has entered into an option agreement with an arm's-length vendor to acquire a 100-per-cent interest in the Joy North property, located in the Gerry Lake area, approximately 50 kilometres southeast of Red Lake, Ont.

The Joy North property consists of a single mining claim comprising four units (64 hectares), which have been held by the vendor continuously since 1992. It covers a 1,000-metre-long conductive zone, defined on the ground by a horizontal-loop electromagnetic (HLEM) survey. A mobile metal ion (MMI) geochemical survey has indicated anomalies in zinc, copper and gold associated with parts of the conductor. The stronger parts of the HLEM conductor also have more intense magnetic responses.

A single 48-metre diamond drill hole was put down in the vicinity of the conductor (exact location unknown) in 1970 by Caravelle Mines Ltd. It intersected a variety of meta-volcanic rocks exhibiting intense alteration of the type associated with volcanogenic massive sulphide (VMS) deposits. It also intersected calc-silicate rocks suggesting that the property may lie at the same stratigraphic horizon as the Dixie zone, 11 kilometres to the west. The Dixie 18 zone, which lies on the Dixie property, also held by Pistol Bay, was estimated by Noranda Inc. to contain 100,000 tonnes grading 12.5 per cent zinc and 0.5 per cent copper.

The Joy North claim is contiguous with the Joy group of claims, which is part of the property package acquired by Pistol Bay from Aurcrest Gold Inc. (see news release dated Nov. 1, 2016). The Joy group of claims covers five separate mineralized zones, all of VMS character, that lie on two horizons that lie parallel to and 1,000 and 1,300 metres respectively south of the Joy North anomaly. The Diamond Willow zone has a historical resource estimate of 270,000 tonnes grading 4 per cent zinc plus copper. No mineral resource, historical or otherwise, has been calculated for any of the other four zones. Following is a list of the more significant diamond drill intercepts:

• Joy zone -- 5.7 metres at 3.1 per cent copper and 0.2 per cent zinc, and 3.35 metres at 4.01 per cent copper and 0.17 per cent zinc;
• Creek zone -- 0.95 metre at 2.33 per cent copper and 0.27 per cent zinc;
• South zone -- 0.6 metre at 0.28 per cent copper and 17.17 per cent zinc, and 0.25 metre at 0.17 per cent copper and 8.36 per cent zinc;
• Caravelle zone -- 0.25 metre at 0.13 per cent copper and 21.6 per cent zinc, and 1.1 metres at 0.22 per cent copper and 4.44 per cent zinc.

Charles Desjardins, chief executive officer of Pistol Bay, stated: "The Joy North property includes one of the very few electromagnetic anomalies in the prolifically mineralized Confederation Lake greenstone belt that has not been satisfactorily explained by diamond drilling. Its associated MMI geochemical anomalies make it a prime exploration target. An existing logging road that comes within 200 metres of the target also makes it one of the most accessible. The company intends to apply for an exploration permit and to include drilling this target in its plans for the 2017 program."

The transaction

The company can earn a 100-per-cent interest in the property by issuing an aggregate of 1,005,000 common shares and paying a total of $40,500 over a four-year period. A 2-per-cent net smelter return royalty has been granted to the vendor, of which 1 per cent may be purchased at any time by the company for $500,000, and the remaining 1 per cent at any time for $1.5-million. In addition, the company must drill a minimum of two diamond drill holes with core of BTW or larger size, to a minimum aggregate depth of 600 metres on the property, subject to the company being granted an early exploration permit by the MNDM.

This transaction is subject to TSX Venture Exchange approval. All shares issued will be subject to a hold period expiring four months and one day from the day of issuance.

Technical information in this news release has been provided and/or reviewed by Colin Bowdidge, PhD, PGeo, a qualified person as defined in National Instrument 43-101.

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