Mr. J. Frank Callaghan reports

BARKERVILLE ANNOUNCES PROPERTY PURCHASE FROM MOSQUITO CONSOLIDATED GOLD MINES LTD.

Subject to regulatory approval, Barkerville Gold Mines Ltd. has entered into an agreement with Mosquito Consolidated Gold Mines Ltd. to acquire all residual property interest owned by Mosquito in the Cariboo district near Wells, B.C., for the purchase price of $5-million. These interests include a 50-per-cent interest in the Cariboo gold quartz property and placer mining rights on the Mosquito Creek property and a 3-per-cent net smelter return royalty on the Cariboo gold quartz mine property, Island Mountain mine property and Mosquito Creek mine property. The transaction is subject to Mosquito Creek obtaining a fairness opinion and board approval.

The company intends to finance the property acquisition from the funds to be raised in its private placement announced on Dec. 5, 2011, in a news release.

Frank Callaghan, president and chief executive officer of the company, stated, "The company had previously completed all of its obligations to acquire the 50-per-cent interest in the Cariboo gold property other than the delivery of a feasibility study, but this payment will enable the company to complete its obligations plus purchase the outstanding 3-per-cent net smelter return royalties on the properties which we believe to be in the best interests of the company as it enables the company to continue its development of its Bonanza Ledge project in an expedient manner."

We seek Safe Harbor.