Mr. Charles Desjardins reports

PISTOL BAY MINING INC. - CLARIFIES TECHNICAL DISCLOSURE

As a result of a review by the B.C. Securities Commission, Pistol Bay Mining Inc. is issuing this news release to clarify the company's previous disclosure. On Oct. 19, 2016, as updated Nov. 1, 2016, the company announced that it entered into a definitive option agreement with Aurcrest Gold Inc. to acquire claims in the Confederation Lake greenstone belt southeast of Red Lake, Ont.

In the Oct. 19 and Nov. 1 news releases, the company included a mineral resource estimate for the Arrow zone that was prepared by Aurcrest and not Pistol Bay. The mineral resource estimate was included in a technical report titled "Resources at Garnet Lake property, Confederation Lake belt," dated Sept. 4, 2007, for Aurcrest (under Aurcrest's previous name Tribute Minerals Inc.). Colin Bowdidge, PhD, PGeo, consulting geologist for Pistol Bay, is the qualified person who reviewed the 2007 technical report on behalf of the company.

To the best of the company's knowledge, there is no new material scientific or technical information that would make the disclosure of the mineral resources inaccurate or misleading. The company will compile and reassess the property data respecting the claims acquired from Aurcrest to plan an exploration program. The company will file an NI 43-101 compliant technical report by mid-April, 2017, to support the mineral resource disclosure for the Arrow zone.

The qualified person who has reviewed and approved the technical disclosure in this news release is Mr. Bowdidge, PhD, PGeo, consulting geologist for Pistol Bay.

We seek Safe Harbor.