Mr. Charles Desjardins reports

PISTOL BAY MINING INC. ARRANGES FINANCING

Pistol Bay Mining Inc. has arranged non-brokered private placements of non-flow-through and flow-through units. The company intends to use the proceeds for initial exploration work on its Confederation Lake project (Dixie claims) and to investigate additional opportunities that will enhance shareholder value.

Previously, the company executed an option agreement to acquire a 100-per-cent interest in zinc-copper properties located in the Red Lake, Ont., region. The Dixie 17-18-19 properties consist of 67 claim units (1,072 hectares) located in the Confederation Lake greenstone belt, 35 kilometres southeast of Red Lake, Ont. The Confederation Lake belt is known to host numerous volcanogenic massive sulphide (VMS) occurrences and deposits. The largest VMS deposit to date, the South Bay mine, produced, between 1971 and 1981, approximately 354 million pounds of zinc, 57.6 million pounds of copper and 3.74 million ounces of silver from 1.6 million short tons (grades of 11.06 per cent zinc, 1.8 per cent copper and 72.7 grams per tonne silver).

The three Dixie mineralized zones were explored by Selco in the period from 1977 to 1981, by Noranda from 1989 to 1992, and by Tribute Minerals Inc. between 2002 and 2009. Selco drilled a total of 40 diamond drill holes, Noranda drilled seven holes and Tribute Minerals drilled 11 holes. The company intends to compile all the historical data on the property, as well as review all the Titan 24 and downhole EM (electromagnetic) data. A systematic program of exploration will be developed, including an anticipated diamond drilling program. Technical information in this news release has been prepared and/or reviewed by Mike Magrum, PEng, and qualified person as defined in National Instrument 43-101.

Subject to the approval of the TSX Venture Exchange, the company has arranged a non-brokered private placement of up to 10 million units for total proceeds of up to $550,000. Up to five million units will be issued as non-flow-through units at a price of five cents per unit consisting of one common share and one whole warrant. Each whole warrant will entitle the holder to purchase one additional common share of the company at a price of 7.5 cents per share for 12 months from the date of closing. Up to five million units will be issued as flow-through units at a price of six cents per unit consisting of one common share and one-half of one whole warrant. Each whole warrant will entitle the holder to purchase one additional common share of the company at a price of nine cents per share for 12 months from the date of closing. Finders' fees, as allowed pursuant to the policies of the TSX Venture Exchange, may be payable in connection with the offering.

The company further announces that pursuant to its stock option plan, the company has granted incentive stock options to its directors, officers, consultants and employees to purchase a total of one million common shares in the capital stock of the company, subject to regulatory approval, exercisable for a period of five years, at a price of five cents per share.

We seek Safe Harbor.