Mr. Charles Desjardins reports

RIO TINTO TO PROVIDE $750,000 CASH INJECTION TO PISTOL BAY

Pistol Bay Mining Inc. has entered into an amending agreement with Rio Tinto Exploration Canada Inc. (RTECI) with regard to the C 4, 5 and 6 uranium properties, whereby Rio Tinto will make an initial cash payment of $750,000 to Pistol Bay.

The C block of uranium properties, located in the Athabasca basin of Saskatchewan, is under option to Rio Tinto, which has earned a 75-per-cent interest to date. Rio Tinto has previously indicated its intention to exercise the further option to acquire a 100-per-cent interest by paying Pistol Bay $5-million on or before Dec. 31, 2019, and granting Pistol Bay a 5-per-cent net profit interest (see Pistol Bay news release of Feb. 16, 2015).

Under the amending agreement, Rio Tinto will acquire an additional 25-per-cent interest in the property (thereby increasing its aggregate interest to 100 per cent), by:

• Paying Pistol Bay $750,000 on or before April 17, 2017;
• Paying Pistol Bay one of the following payments:
  • $1.5-million on or before Dec. 31, 2017;
  • $2-million on or before Dec. 31, 2018; or
  • $2.25-million on or before Dec. 31, 2019.

Pistol Bay will retain a 5-per-cent net profits interest in the property.

Charles Desjardins, chief executive officer of Pistol Bay, commented: "Rio Tinto's payment does not dilute the company and allows Pistol Bay to expand the scope of its upcoming exploration work, including drilling, on its Confederation Lake greenstone belt zinc-copper-gold project. We look forward to continuing our working relationship with Rio Tinto."

About Pistol Bay Mining Inc.

Pistol Bay Mining is a diversified junior Canadian mineral exploration company with a focus on precious and base metal properties in North America.

We seek Safe Harbor.