Mr. Charles Desjardins reports

PISTOL BAY COMMENCES WORK ON DIXIE CLAIMS - RED LAKE, ONTARIO

Pistol Bay Mining Inc. has commenced a detailed compilation and review of historical exploration data on its Dixie property, 35 kilometres southeast of Red Lake, Ont.

The Dixie property is situated in the Confederation Lake greenstone belt, which 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 (recovered grades of 11.06 per cent Zn, 1.8 per cent Cu and 72.7 grams per tonne Ag). The South Bay mine site is 45 kilometres east of the Dixie property on the same felsic volcanic unit.

The Dixie property covers four groups of airborne electromagnetic anomalies, known as Dixie 17, 18, 19 and 20. The Dixie 17, 18 and 19 anomalies were explored by Selco in the 1977 to 1981 period, by Noranda in 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.

VMS-type mineralized zones have been located on the Dixie, 17, 18 and 19 anomalies. A mineralized zone on Dixie 17 has yielded results up to 7.34 per cent Zn and 1.4 per cent Cu over a core length of 9.5 metres. The Dixie 18 mineralized zone has been drilled over a length of 250 metres and to a depth of 150 metres. Noranda made a resource estimate of 150,000 short tons grading 14 per cent Zn (note: this is a historical resource estimate that does not comply with National Instrument 43-101 and has not been reviewed by a qualified person to assess its reliability). The Dixie 19 zone has been traced over a length of 500 metres, with drill intercepts including 6.33 per cent Zn and 1.5 per cent Cu over a core length of 3.55 metres.

Tribute Minerals carried out a Titan 24 deep earth imaging survey over the eastern one-third of the present Dixie property. It covered the Dixie 19 and 20 anomalies. The survey defined a new blind anomaly (one which does not come to surface) beneath the Dixie 19 zone. Two diamond drill holes put down in 2002 tested what appeared to be the top of this zone. Drill hole DX-2002-01 was reported to have intersected 1.25 metres averaging 9.71 per cent Zn, 0.20 per cent Cu and 10.7 g/t Ag, and drill hole DX-2002-04 reportedly cut 1.25 metres averaging 5.32 per cent Zn. These intersections were at vertical depths of 262 and 350 metres, respectively. No deeper drilling was done on this target, despite the interpretation that the top of the conductor was at 375 metres below surface.

A second, larger and deeper, conductive body was located approximately coincident with, but below the Dixie 20 anomaly. The conductive body, modelled by inversion of magneto-telluric (MT) data, has an irregular shape, but was reported to extend over an east-west length of 1,800 metres. One diamond drill hole, DX-2003-01A, may have intersected the top of the conductive body. This hole cut a wide zone of altered felsic pyroclastic rocks, with variable pyrite content. The highest individual assays were 0.98 per cent Zn and 1.13 per cent Cu. Down-hole electromagnetic surveying indicated that this hole had penetrated a large (up to 800 by 800 metres) conductive body close to its edge. Another model of the same MT data suggested that the conductive body may trend close to north-south, for example, subparallel to the survey lines and subparallel to the drill hole put down to test it.

The data review and compilation will collate drill hole results and assess the potential of extensions of the Dixie 17, 18 and 19 zones. It will also attempt to assess the validity of the interpreted conductors defined by the Titan 24 survey. It will make recommendations for a diamond drilling program, as well as outlining requirements for deep-penetrating electromagnetic surveys. The Titan 24 system that covered the eastern one-third of the property was in development in 2002 to 2003 when the survey was done, and the results may be open to reinterpretation of target geometries. The western two-thirds of the property has been tested by EM surveys and diamond drilling to depths of no more than 200 metres. To illustrate the type of deposit that might be expected in the Confederation Lake belt, the South Bay mine produced from a series of massive sulphide lenses, of which the deepest and richest extended from a depth of about 330 metres to 440 metres. Deeper-penetrating exploration technologies will substantially increase the possibility of economically significant discoveries.

Technical information in this news release has been provided and/or reviewed by Colin Bowdidge, PhD, PGeo, a qualified person as defined in NI 43-101.

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