Mr. Charles Desjardins reports

VTEM PLUS IDENTIFIES NUMEROUS NEW CONDUCTORS AT CONFEDERATION LAKE

Pistol Bay Mining Inc. has provided an update of its activities for the past few months.

The company has received the final results of a 2,100-line-kilometre helicopter-borne electromagnetic and magnetic survey of the eastern two-thirds of its properties in the Confederation Lake greenstone belt, covering a 40-kilometre length of the belt. The survey was carried out by Geotech Ltd., using its VTEM (versatile time domain electromagnetic) Plus system. Geotech is an industry leader in airborne electromagnetic surveying, and the VTEM Plus system has successfully detected conductive zones at depths of several hundred metres. The latest versions of VTEM have succeeded in detecting an IP (induced polarization) effect response, which is capable of responding to disseminated sulphides. Horizontal gradient magnetometers allow the creation of gradient-enhanced magnetic grids, which give resolution of fine structural details, at a level that would have required a closer line spacing in previous single-magnetometer airborne surveys.

After reviewing the survey data with the company's consulting geophysicist, Jeremy S. Brett of MPH Consulting Ltd., the following observations were made:

• Conductive responses were confirmed at all historic showings, zones and mineralized drill intersections.
• There are conductive extensions of several known zones, beyond sections that have been drilled in the past.
• There are untested conductors on strike with known mineralized zones or occurrences.
• There are new clusters of conductors, away from any known mineralization, that are in areas of favourable geology, and constitute new target areas.
• Numerous IP effect anomalies have been identified, either as separate anomalies or as extensions of conductors.

Appraisal of targets from the VTEM Plus survey is continuing. The database of whole-rock chemical analyses, inherited from Noranda by Tribute Minerals Inc., is an important tool in evaluating anomalies, because it can highlight areas of favourable geology and hydrothermal alteration.

Charles Desjardins, chief executive officer of Pistol Bay, commented: "This is an exciting time for Pistol Bay. We are working to develop and prioritize targets for ground follow-up and drill testing. Because of the large number of potential targets generated by the VTEM survey, we are considering inviting joint venture partners for all or parts of the Confederation Lake project. We have had early-stage discussions with potential joint venture partners. Once we've got our targets finalized, we will be entertaining proposals for joint ventures to advance this highly prospective property."

In another development, the company has received a new National Instrument 43-101 technical report on the Garnet Lake property (which includes the Fredart and Lucky 7 claim groups). The report includes a new inferred mineral resource for the Arrow zone: 2.1 million tonnes with average grades of 5.78 per cent zinc, 0.72 per cent copper, 0.60 gram per tonne (g/t) gold and 19.5 g/t silver. The resource is based on a cut-off grade of 3 per cent zinc equivalent, and a three-metre minimum true width. The technical report recommends 2,000 metres of diamond drilling to test for possible down-plunge extensions of the Arrow zone. The report can be viewed under the company's profile on SEDAR.

The Fredart A zone has a historical resource of 368,000 tonnes grading 1.56 per cent copper and 33.6 g/t silver. The method used to calculate that resource is not disclosed sufficiently in historic reports to allocate that resource estimate to any of the current accepted categories of mineral resource or mineral reserve. No qualified person has reviewed the resource to assess its quality or relevance. As a historic estimate, it should not be relied on. Several of the historic drill holes in the Fredart A zone reported substantial widths -- drill hole FA1966-15 reportedly cut 40.42 metres averaging 1.40 per cent copper and 21.1 g/t silver, including a higher-grade section of 16.22 metres grading 2.67 per cent copper and 48.3 g/t silver.

Technical information in this news release has been provided or approved by Dr. Colin Bowdidge, PhD, PGeo, a qualified person as the term is defined in National Instrument 43-101 and consulting geologist for Pistol Bay.

About Pistol Bay Mining Inc.

Pistol Bay Mining is a diversified junior Canadian mineral exploration company with a focus on zinc and base metal properties in North America.

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