Mr. Darin Labrenz reports

PURE GOLD FULLY FUNDED TO RAPIDLY ADVANCE MADSEN THROUGH FEASIBILITY STUDY AND PERMITTING UPDATES

Pure Gold Mining Inc. has provided an update on the development and exploration activities at its 100-per-cent-owned Madsen gold project. With the close of the recent financing, and approximately $24-million now in the treasury, the company is fully financed to complete the definitive feasibility study (DFS), finalize remaining mining and processing permits, extract a 7,200-tonne bulk sample, and undertake an additional 21,000 metres of exploration drilling focused on increasing the scale of the project beyond that contemplated in the feasibility study.

Upon the completion of the DFS in October, 2018, the company will be in a position to make a production decision and ramp up preproduction work as permits are updated. Meanwhile continuing exploration efforts will be primarily focused on expanding mineralization at the company's Wedge target with a goal of estimating a mineral resource for this area in the fourth quarter of 2018. New resource areas at the Wedge, Russet South and Fork deposits have the potential to provide both near-term mine plan scalability and mine life extension.

Project development update

The company has made significant progress on the DFS including completion of trade-off studies, metallurgical testwork, geotechnical field studies, and has initiated detailed mine design work that will form the foundation of the Madsen development and production schedule.

"Our feasibility team is making great progress and the study is on track for completion in the fourth quarter of 2018," stated Darin Labrenz, president and chief executive officer of Pure Gold. "Importantly, our work program is fully funded through to mid-2019 when we anticipate having all required updated permits in place to support our goal of advancing Madsen to production. As outlined in our 2018 preliminary economic assessment, Madsen has the potential to be a low-capital-intensity project leveraging key existing infrastructure to provide high margins, setting it apart from other near-term producers in our space. Our current development program is designed to further derisk the project, demonstrate the upside growth potential and scalability, and put the Madsen gold project firmly on the path to becoming Ontario's next gold mine (1)."

To date, the company has:

• Initiated the definitive feasibility study of the Madsen gold project, advancing toward a production decision in the shortest timeline possible;
• Completed the rehabilitation of the Madsen ramp;
• Completed the rehabilitation of 2 level from the Madsen ramp and an exploration drift allowing for infill drilling of preliminary stope areas;
• Completed rehabilitation of the shaft manway to 4 level, providing secondary egress from the Madsen ramp;
• Completed 18,000 metres of underground resource definition drilling from the Madsen ramp and new exploration drift, with multiple drill holes both upgrading and expanding the mineralization outside of the current resource (2);
• Completed trade-off studies exploring the use of the existing Madsen No. 2 shaft for ore and waste hoisting;
• Evaluated the capacity of existing tailings management facility (TMF) and designed TMF expansion options within the existing footprint;
• Completed a geotechnical site investigation of the TMF, including substantial geotechnical drilling, test pits and installation of groundwater monitoring wells;
• Collected approximately 1,000 kilograms of mineralized drill core intercepts and underground samples and completed initial phases of metallurgical testwork with recoveries from samples averaging 95.4 per cent, with a range from 90 per cent to 99 per cent, and an average of 36 per cent reporting to the gravity circuit (3);
• Initiated detailed mine design work to support the DFS development and production schedule.

To support the DFS initiatives, test mining has commenced with development in progress to support the planned extraction of 7,200 tonnes of mineralized material designed to establish both lateral and vertical continuity. The existing Madsen ramp is currently being driven an additional 100 linear metres to access the bulk sample location, with approximately 225 metres of lateral development and 50 metres of vertical development. During the test mining the company plans to implement a comprehensive production-level mapping and sampling program including face chip samples, test hole sludge samples and extensive muck sampling, along with 2,100 metres of bazooka (EW-size) core drilling.

Exploration update

The company continues to demonstrate strong upside potential at Madsen, with additional discoveries announced in January from the Wedge target area. Since November, 2017, the company has completed 23,000 metres of exploration drilling from surface.

Wedge drill result highlights announced to date include (4):

• 33.3 grams per tonne gold over 8.3 metres from drill hole PG17-467;
• 25.2 g/t gold over 2.1 metres from drill hole PG17-482;
• 21.3 g/t gold over 10.3 metres from drill hole PG17-486;
• 22.5 g/t gold over 2.0 metres from drill hole PG18-505.

Given the positive exploration results, the company is herein announcing an increase of 21,000 metres of surface drilling at Madsen, with the primary goal of expanding the mineralized zones at Wedge, and declaring maiden resources for the area in the fourth quarter of 2018, to expand the satellite resource inventory.

Expansion of the exploration program will increase the total surface drilling planned for 2018 to approximately 40,000 metres. Exploration drilling on the property is continuing with two surface drill rigs currently active. Results from completed surface drilling at both Wedge and Russet South, and completed underground drilling from the Madsen exploration drift are pending and will be released when available.

About Madsen

The Madsen gold project has historic production of 2.5 million ounces of gold and a current indicated resource of 1,744,000 ounces gold at 8.7 grams per tonne gold (in 6.2 million tonnes) and an inferred resource of 296,000 ounces gold at 7.9 g/t gold (in 1.2 million tonnes). The project benefits from existing infrastructure including a mill and tailings facility, paved highway access, and access to power, water and experienced labour (1). A feasibility study is under way with results expected in the fourth quarter of 2018 and the Madsen gold project is firmly on the path to becoming Ontario's next gold mine.

(1) See the National Instrument 43-101 technical report entitled "Technical Report for the Madsen Gold Project -- Restated Preliminary Economic Assessment and Initial Satellite Deposit Mineral Resource Estimates" with an effective date of Dec. 14, 2017, for complete details, available on the company's website or SEDAR profile.

(2) See news release dated April 11, 2018.

(3) See news release dated April 3, 2018.

(4) See news releases dated Jan. 31, 2018, and April 3, 2018.

Qualified persons and NI 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.

About Pure Gold Mining Inc.

The company's mandate is pure and simple. To dream big. To colour outside the lines. To use smart science and creativity to unlock the next major discovery at the Madsen gold project in Red Lake, Ont.

We seek Safe Harbor.