Mr. Charles Desjardins reports

PISTOL BAY ACQUIRES ADDITIONAL GROUND AT CONFEDERATION LAKE GOLD AS WELL AS ZINC/COPPER IN HISTORIC DRILL HOLES

Pistol Bay Mining Inc. has entered into an option agreement to acquire two additional claim groups in the Confederation Lake greenstone belt, southeast of Red Lake, Ont. This acquisition brings Pistol Bay's land position in this belt with its numerous zinc-copper-silver (and gold) deposits and occurrences to approximately 9,450 hectares (23,300 acres) over a 53-kilometre length of favourable volcanic geology.

The two claim groups are called the Lucky 7 and Moth groups. The Lucky 7 property (five claims, 640 hectares and 1,580 acres) covers a number of mineralized zones discovered by prospectors Jerry Williamson and Perry English. The claims adjoin the Garnet Lake and Garnet East claim groups that are part of the group of properties acquired by Pistol Bay from AurCrest Gold Inc. A copper-gold sulphide zone, which apparently grades into a siliceous gold zone at its eastern end, was stripped and drill tested in 2002 by Kings Bay Gold Corp. Two short electromagnetic anomalies were drill tested by Selco Mining Corp. in 1980. A zone of massive to disseminated sulphides, referred to as the Hilltop copper-gold zone, has been trenched but apparently never drilled. The results of four grab samples were collected by Colin Bowdidge, PhD, PGeo, consulting geologist for the company, during a property visit in 2016. Note the high-grade gold and copper assays from the last sample listed from the Hilltop zone.

The Moth group of 10 claims comprises 85 units (1,360 hectares and 3,360 acres). It is separated from the Lucky 7 claims by a five-kilometre gap. It covers a 5.5-kilometre length of favourable geology, and its north boundary is only two kilometres from the former producing South Bay mine, which is at the end of the South Bay Road, and hence the end of the most accessible part of the Confederation Lake greenstone belt. The area was extensively explored between 1970 and the mid-1990s, with at least 14 diamond drill holes. Widespread hydrothermal alteration was noted, and there were numerous indications of zinc and/or copper mineralization.

Charles Desjardins, chief executive officer of Pistol Bay, commented: "This latest acquisition continues Pistol Bay's policy of acquiring a dominant land position in this well-mineralized belt with its high potential for zinc-copper mineralization. The 13-gram-plus-gold assay in a grab sample from the Lucky 7 property, and historic drill hole assays up to 2.86 grams per tonne of gold on the Moth property suggest that we might be getting into an area with a potential for gold, as well as base metals, and this is something that hasn't been widely recognized before in the Confederation Lake belt."

Under the terms of the option agreement, to acquire a 100-per-cent interest in the Lucky 7 and Moth claims, Pistol Bay is required to make total cash payments of $72,000 and issue a total of 2.3 million shares over a three-year period. A vendor of the Lucky 7 and Moth claims will retain a 1.5-per-cent net smelter return royalty, of which one-half or 0.75 per cent of the NSR may be repurchased for the consideration of $400,000 at any time up to when a production decision is made.

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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