Mr. Benjamin Mossman reports

BANKS ISLAND GOLD LTD. DISCOVERS JASPEROID STYLE OF MINERALIZATION AT TEL ZONE

Banks Island Gold Ltd. is providing an update on mining and processing at the Yellow Giant gold project.

The company has recently been mining and processing mineralization from the Tel Central zone. During mining of the T30 Central level, company geologists noted unusual amounts of microcrystalline quartz breccia within the mineralized vein. This rock type, which has been provisionally named "Jasperoid," makes up the eastern third of the Central zone between T20 and T30 levels. Jasperoid encountered is commonly stained red from hematite, but can also be stained dark grey to black colour from galena and argentite.

Jasperoid has a modest specific gravity (approximately 2.75 tonnes per cubic metre), which makes the preconcentration of this material by dense media separation difficult. Assays from this material ranged from 29 grams per tonne gold to 214 g/t gold. Jasperoid with black staining shows high silver values, which assayed up to 1,490 g/t Ag. Assay results from selected samples of Jasperoid are displayed in the attached table. The majority of Jasperoid samples contain low sulphur, which suggests that gold is present as free grains of electrum or native gold.

             ASSAY RESULTS FROM JASPEROID MATERIAL 

                                             Sample assays
                            Sample No.  Gold (g/t)  Silver (g/t)

Jasperoid -- blood red, 
copper staining               E5394883         214           374
Jasperoid -- with pyrite
and galena banding            E5394885          29         1,490
Jasperoid -- black colour     E5394886          35         1,264
Jasperoid -- red colour, 
composite from crushed ore    E5396715          29           130

Company engineers are studying the best method to mine and process this material from T30 Central. This material will likely be processed directly through the grinding and flotation sections of the mill with gold recovered by the Falcon concentrator and by flotation. In this case the company would process Bob and Tel Main mineralization through the dense media separation plant, and Tel Central mineralization directly fed into the grinding circuit.

Company geologists are studying the implications of the jasperoid-style mineralization on the geological model and exploration plans for the Tel area.

At present the company is processing mineralization from the upper Bob zone. Mining commenced in the upper Bob zone in February, 2013, and production from this area has exceeded expectations based on the mineral resource. Mine crews are completing a fourth draw point at present to extract the remaining ore and, once complete, will prepare this stope for backfilling.

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 NI 43-101-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.

Dr. Dirk Meckert, PGeo, is the qualified person who reviewed and approved the contents of this news release.

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