Mr. Benjamin Mossman reports

BANKS ISLAND GOLD LTD. PROVIDES UPDATE ON COMMISSIONING OF GRINDING AND FLOTATION CIRCUITS

Banks Island Gold Ltd.'s commissioning of grinding and flotation circuits is in progress and production of gold concentrate has recommenced at the Yellow Giant gold property, located on Banks Island, British Columbia.

The company has recently installed and commissioned additional tailings filter press capacity and optimized the grinding circuit and mill cyclone. Since these improvements have been completed, mill throughput has averaged 200 tonnes per day.

The Falcon gravity concentrator in the milling circuit was recently commissioned. This equipment captures gravity recoverable gold in the milling circuit and produces a separate high-grade concentrate. Preliminary results from this circuit indicate production of approximately half a tonne of concentrate per day grading approximately 900 grams per tonne gold and approximately 750 gpt silver. The company intends to operate this system in order to reduce the amount of gold "lock-up" in mill liners and provide a higher percentage of payable gold from this segment of gold production.

Since commencement of processing on Aug. 6 to Sept. 16, the company has produced 635 dry metric tonnes of concentrate with an average grade of approximately 72 gpt gold and 184 gpt silver. The company estimates that average metallurgical gold recovery to date at 92 per cent.

Benjamin Mossman, PEng, is the qualified person who reviewed and approved the contents of this news release.

The company is not basing its production decision on a feasibility study of mineral reserves with demonstrated economic and technical viability. Banks Island Gold has decided to put the property into production without first establishing mineral reserves supported by an NI43-101-compliant technical report and feasibility study. The company cautions readers that such production may not be economically feasible and historically such projects have a much higher risk of economic or technical failure.

We seek Safe Harbor.