Mr. Charles Desjardins reports

PISTOL BAY CLOSES FINANCING, EXTENDS EXPIRY ON WARRANTS

Pistol Bay Mining Inc. has closed a non-brokered private placement financing for total gross proceeds of $336,600.

The company has allotted and issued 3.96 million units at a price of 8.5 cents per unit. Each unit comprises one common share and one transferable share purchase warrant, with each warrant entitling the holder to purchase one additional common share of the company for a period of up to 18 months at a price of 12 cents.

In addition, the company has paid finders' fees of a total of $32,810, 173,000 common shares and 223,000 finders' warrants under the following terms:

• One hundred seventy-three thousand finders' warrants authorize the holder to acquire one unit of the company for a period of 18 months at a price of 12.5 cents, with each unit consisting of one common share and one non-transferable share purchase warrant exercisable at a price of 12.5 cents for 18 months from closing.
• Fifty thousand finders' warrants authorize the holder to acquire one unit of the company for a period of 12 months at a price of 8.5 cents, with each unit consisting of one common share and one non-transferable share purchase warrant exercisable at a price of 12 cents for 12 months from closing.

The company will use the proceeds of the private placement for exploration expenditures on the company's Canadian properties and general working capital. All securities issued under the private placement are subject to a four-month-and-one-day hold period expiring on Aug. 28, 2017.

Further, the company announces an amendment to the amount of NFT (non-flow-through) units issued pursuant to the financing closed on March 20, 2017. The company issued an additional 2,731 NFT units at a price of seven cents per NFT unit to one subscriber. Each NFT unit comprises one common share and one transferable share purchase warrant, with each warrant entitling the holder to purchase one additional common share of the company for a period of up to 18 months at a price of 12 cents.

Warrant extension

Furthermore, upon the approval of the TSX Venture Exchange, the company will extend the expiry date of 7,632,500 common share purchase warrants that were issued by way of a private placement approved by the exchange on Aug. 29, 2016. The old expiry date on the warrants of Aug. 29, 2017, will be extended to Aug. 29, 2018. The exercise prices will remain the same.

About Pistol Bay Mining Inc.

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

We seek Safe Harbor.