Mr. Benjamin Mossman reports

BANKS ISLAND CLOSES NON-BROKERED PRIVATE PLACEMENT OFFERING, ANNOUNCES SHARES FOR DEBT ARRANGEMENT, AGM RESULTS, AND APPOINTMENT OF NEW CFO

Banks Island Gold Ltd. has closed its private placement announced on Sept. 12, 2014. A total of 2,643,600 flow-through units were issued at a price of 50 cents per flow-through unit for gross proceeds of $1,321,800.

Each flow-through unit consists of one flow-through common share and one-half of one transferrable share purchase warrant. Each whole warrant entitles the holder thereof to acquire one non-flow-through common share in the capital of the company at a price of 60 cents per common share for a period of 24 months following the closing of the offering. Warrants will not be listed for trading. The gross proceeds from the issue of the flow-through shares (as defined in the Income Tax Act (Canada)) included in the flow-through units will be used on qualifying flow-through mining expenditure (as defined in the Tax Act) related to the company's exploration projects. The company intends to renounce Canadian exploration expenses (as defined in the Tax Act) with an effective date of no later than Dec. 31, 2014.

The company paid Secutor Capital Management Corp. a fee of $105,744, equal to 8 per cent of the gross proceeds received by the company from the sale of the flow-through units, and issued 211,488 non-transferable finder warrants. Each finder warrant entitles the holder thereof to purchase one common share at a price of 70 cents for a period of 18 months following the closing of the offering.

The securities issued pursuant to the offering are subject to a hold period expiring on Jan. 18, 2015.

The company intends to use the net proceeds of the offering for continued exploration and development activities on its Yellow Giant gold property located on Banks Island in British Columbia.

Shares for debt

The company has also arranged to partially settle a debt owed to a particular arm's-length vendor by issuing a total of 635,000 common shares at a deemed price of 43 cents per common share. The amount of the indebtedness to be settled by the arrangement totals $273,050. The common shares issued in connection with the debt settlement will be subject to a hold period of four months and one day from date of issuance.

The arrangement is subject to approval of the TSX Venture Exchange.

Results of annual general meeting (AGM)

The company is releasing the results of the company's annual general meeting of shareholders held in Vancouver, B.C., on Sept. 17, 2014. The shareholders approved all motions put forth at the meeting, including the reappointment of Wolrige Mahon LLP, chartered accountants, as the company's independent auditors and the confirmation of the company's stock option plan. As well, the shareholders re-elected Benjamin Mossman, Saurabh Handa, Wolf Nickel, Fred Sveinson and Jason Nickel, to the company's board of directors.

In addition, Craig Kalnin was appointed as interim chief financial officer. Mr. Kalnin is a chartered accountant with over 10 years of experience in financial reporting, controls and corporate governance. Previously, he was the corporate accounting manager at Western Forest Products Inc., the corporate financial analyst, and internal controls and compliance specialist, at Interfor Corp., both resourced-based, Toronto Stock Exchange-listed issuers, and an audit senior at Deloitte and Touche LLP.

The company would like to extend its appreciation to Sharon Muzzin for her excellent performance and dedication as CFO over the past two years, and wishes her success in her future endeavours.

We seek Safe Harbor.