Mr. Darin Labrenz reports

PURE GOLD INTERSECTS 133.4 G/T GOLD OVER 2.0 METRES AT MCVEIGH, MADSEN GOLD PROJECT

Pure Gold Mining Inc. has released drill results from the continuing 70,000-metre, four-drill-rig exploration program at the company's 100-per-cent-owned Madsen gold project. Results reported herein include a number of significant achievements for Pure Gold and include the following highlights:

• The highest-grade result to date returned from McVeigh being 133.4 grams per tonne gold over two metres in hole PG17-307 including 264.9 g/t gold over one metre.
• The deepest gold-mineralized intercept drilled to date by Pure Gold intersecting the A3 zone at 600 metres vertical and returning 6.2 g/t gold over 3.3 metres in hole PG17-320.
• Extension of the structures hosting mineralization in the McVeigh over 600 metres to the southwest in drill hole PG17-359 which returned 13.9 g/t gold over 1.5 metres in the Fork zone. This confirms that McVeigh, Fork and Starratt target areas link into a common mineral system extending for over five kilometres.

Higher grades at McVeigh

Drill hole PG17-307 intersected the highest-grade result by Pure Gold to date in the McVeigh, returning 133.4 g/t gold over two metres, including 264.9 g/t gold over one metre at a depth of 225 metres below surface. This intercept lies approximately 150 metres below mined stopes on level 2 and outside of conceptual areas studied for potential mining development in the 2016 preliminary economic assessment (PEA) (1). Drilling of the McVeigh continues to support geologic models highlighting internal continuity in south-plunging mineralized shoots. The McVeigh remains open in all directions, with drilling currently focused on broader stepouts, outside the known extents of mineralization, with a goal of expanding the resource in proximity to the established infrastructure.

Drilling at the A3 continues to show continuity of gold mineralization

Results reported herein have identified gold mineralization in a 60-metre stepout on previously reported results from the A3 target of 14.3 g/t over one metre in drill hole PG16-282 (2). Drill hole PG17-320 is the deepest gold-mineralized intercept returned by Pure Gold to date in the A3 target, highlighting gold mineralization at a depth of 600 vertical metres. Drilling targeting the A3, which is situated immediately in the hangingwall of the McVeigh, has now established a 500-metre plunge extent on the mineralized structure.

Stepout drilling intersects mineralization 900 m south of McVeigh portal at the Fork zone

Drilling by Pure Gold intersected 3.9 g/t gold over 6.6 metres, including 13.9 g/t gold over 1.5 metres in a 150-metre stepout from PG14-011 which returned 17.2 g/t gold over 3.5 metres at a vertical depth of 130 metres (3). This intercept establishes a strike length at Fork of 450 metres in a shallow south-dipping gold-bearing structure which remains open for expansion. More importantly, drill hole PG17-359 has extended the gold-mineralized structure that hosts the McVeigh zone approximately 600 metres to the south of the southernmost McVeigh drilling to date.

New geologic modelling based on recent drilling has established the structural framework for the Fork zone and reinforces the scale of the Madsen mineral system. This new work confirms the earlier postulation of strike continuity of the gold-mineralized system between the Madsen and Starratt mines, with approximately 2.5 kilometres from the Madsen No. 2 shaft to the Starratt target and five kilometres of total strike length of the high-grade gold-mineralized system.

"Our drilling has firmly established the expansion of the Madsen mineral system," said Darin Labrenz, president and chief executive officer of Pure Gold. "Today's results show high gold grades intersected outside the limits of the existing resource and more importantly, significant stepout drilling has linked what were previously viewed as separate target areas into a common geologic model, demonstrating the potential size of the Madsen mineral system."

Drill results summary

New assay results from select drill holes are outlined in the associated table.

Hole         From     To     Length       Gold      
ID            (m)    (m)        (m)      (g/t)

PG17-307    281.7  283.7        2.0      133.4  
incl.       282.7  283.7        1.0      264.9        
PG17-320    697.0  700.3        3.3        6.2     
PG17-338    502.8  504.8        2.0        5.9  
PG17-359    164.0  170.6        6.6        3.9    
incl.       165.0  166.5        1.5       13.9        

* Assay composites were calculated using 
uncut assays and true widths are interpreted 
to vary from 50 to 100 per cent (80 per cent,
on average) of reported core lengths.

Pure Gold's 2017 exploration program is continuing with four drill rigs currently testing resource growth potential near the mine infrastructure and along the more-than-five-kilometre strike length of the Madsen mineral system. The program is expected to include 70,000 metres of core drilling, and will include underground drilling, projected to commence in the second quarter 2017. Further results will be released as available.

About Madsen

The Madsen mine operated for over 36 years with historic production of 2.5 million ounces at an average grade of 9.9 grams per tonne gold. The Madsen gold project hosts a permitted mill and tailings facility, and access to power, water and labour. The Madsen gold project has an indicated resource of 928,000 ounces gold at 8.93 g/t gold (in 3.24 million tonnes) and an inferred resource of 297,000 ounces gold at 11.74 g/t gold (in 790,000 tonnes) (1). The mineral resource is based on 13,624 drill holes, evenly dispersed throughout the mineral resource. A robust geologic model based on 27 levels of geological mapping and chip sampling provides a solid understanding of the geology and continuity of mineralization.

In addition to the mineral resource, the Madsen gold project hosts a number of prospective new discoveries including the Fork zone and Russet South targets as well as two significant historic underground mines. Pure Gold believes the opportunity exists to advance these targets through the application of modern exploration science and a new understanding of the district.

(1) See the National Instrument 43-101 technical report entitled "Technical report on the preliminary economic assessment for the Madsen gold project," prepared by Nordmin Engineering Ltd., dated effective April 20, 2016. Mineral resources are not mineral reserves and do not have demonstrated economic viability.

(2) See Pure Gold news release dated Feb. 28, 2017.

(3) See Pure Gold news release dated Oct. 29, 2014.

Quality assurance/quality control and core sampling protocols

Drill core samples are bagged and sealed and submitted to SGS in Red Lake, Ont., for sample preparation by crushing to 75 per cent less than two millimetres, a riffle split of one kilogram, and pulverization of the split to better than 85 per cent passing 75 microns. Gold analysis is completed in the SGS Red Lake, Lakefield or Burnaby labs with a 30-gram fire assay and AAS (atomic absorption spectroscopy) finish (code GE-FAA313). Samples returning greater than five g/t Au are reassayed with a gravimetric finish (code GO-FAG303). Mineralized zones with visible gold and adjacent samples are also analyzed by a one kg screen fire assay with screening to 106 microns (code GO-FAS51K). Two 30 g fire assays are conducted on the screen undersize and combined with an assay of the entire oversize fraction. Control samples (accredited standards and non-accredited blanks) were inserted on a regular basis. Results are assessed for accuracy, precision and contamination on a continuing basis.

Qualified persons and National Instrument 43-101 disclosure

Phil Smerchanski, PGeo, vice-president, exploration, for the company, is the designated qualified person for this news release within the meaning of National Instrument 43-101 and has reviewed and verified that the technical information contained herein is accurate and approves of the written disclosure of same.

We seek Safe Harbor.