Mr. Charles Desjardins reports

PISTOL BAY RECEIVES FIRST RESULTS OF VTEM PLUS SURVEY AT CONFEDERATION LAKE

Geotech Ltd. of Aurora, Ont., has completed a helicopterborne VTEM Plus survey of the eastern three-quarters of Pistol Bay Mining Inc.'s landholdings in the Confederation Lake greenstone belt southeast of Red Lake, Ont. The first set of products has been delivered to Pistol Bay, including electromagnetic (EM) profiles and total-field magnetics. More data products will be delivered over the next few weeks.

The VTEM (versatile time-domain electromagnetic) system was first deployed in 2005, when it featured a 30-metre-diameter transmitter loop, capable of putting out more powerful pulses than any other helicopterborne system, giving it unprecedented depth penetration. Continual improvements over the years have led to the VTEM Plus system, with a 36-metre transmitter loop and improved signal processing, allowing it to see even deeper.

The Confederation Lake greenstone belt has long been known as being prospective for zinc-copper VMS (volcanogenic massive sulphide) mineralization. Electromagnetic survey methods, both on the ground and airborne, have been the most important exploration tool for VMS deposits and have been responsible for virtually every VMS discovery since the early 1960s.

The history of the Confederation Lake greenstone belt has paralleled the history of electromagnetic surveying. The first substantial deposit in the belt was the Copperlode A (also known as Fredart A) deposit (1), discovered in the early 1960s by prospecting, which led to widespread appreciation of the VMS potential of the area. In the late 1960s, Selco Exploration Co. carried out an airborne EM survey, and drill testing of anomalies led to the discovery of the South Bay zinc-copper-silver deposit. Selco put the South Bay mine into production in 1971, producing approximately 1.45 million tonnes until its closure in 1981. Although it was a relatively small deposit, its high grade of 11.06 per cent zinc, 1.80 per cent copper and 72.7 grams per tonne silver (2) is reported to have made it a very profitable mine for Selco.

Between the South Bay discovery and 1998, several companies, including Noranda Exploration Co. and Minnova Inc., surveyed all, or parts, of the Confederation Lake belt with airborne EM systems of increasing power and depth penetration, looking for blind sulphide zones (that is, zones that do not come to surface). New sulphide zones were found by drill testing EM anomalies. However, the next two substantial discoveries were made by Noranda in the 1990s using deep-penetrating, time-domain ground surveys in areas of favourable geology. The top of the Arrow zone is approximately 150 metres below surface. The Arrow zone was drilled by Noranda, then by Tribute Minerals Inc., which acquired all of Noranda's assets in the area in 2003. Pistol Bay optioned all of Tribute Minerals' properties, including the Arrow zone, in October, 2016, and is currently waiting for a new mineral resource estimate (3).

The top of the Hornet zone is 300 metres below surface. Noranda only tested it with three drill holes. Pistol Bay is in negotiations to acquire a majority interest in the four-claim property that includes the Hornet zone. Ground time-domain EM systems, like the Crone PEM and Geonics EM-37 that were used by Noranda, are not practical for exploring large areas, because of their high cost. The new VTEM Plus system offers similar depth penetration capabilities at a cost that allows large areas to be covered effectively.

After reviewing the first tranche of the VTEM Plus survey results, Pistol Bay has seen a number of anomalies where no mineralized zones were previously known. No exploration decisions will be made until all of the survey results are in, and appropriate interpretation and modelling procedures have been used.

Chief executive officer Charles Desjardins stated: "We are very encouraged by these preliminary results. We now have complete coverage of our land package with a system that can detect sulphide zones at depths of 300 metres or more, possibly much more (up to 700 metres). It gives us the opportunity to look deeper than anyone else has been able to."

(1) The Copperlode A or Fredart A zone has a historical resource estimate of 386,000 tonnes grading 1.56 per cent copper. The method used to calculate that resource is not disclosed sufficiently to allocate that resource estimate to any of the currently accepted categories of mineral resource or mineral reserve. No qualified person has reviewed the resource to assess its quality or relevance. As a historical estimate, it should not be relied upon.

(2) Although the number of tonnes produced at South Bay is consistent across published sources, there are other published statements of the grade, which are significantly higher than those quoted here, which are from an Ontario Geological Survey record, and hence are somewhat official.

(3) In 2007, a mineral resource estimate was made for Tribute Minerals of the Arrow zone: indicated resource, 2,071,000 tonnes grading 5.92 per cent zinc, 0.75 per cent copper, 21.1 grams per tonne silver and 0.58 g/t gold, plus inferred resource, 120,500 tonnes at 2.60 per cent zinc, 0.56 per cent copper, 18.6 g/t silver and 0.40 g/t gold. This is a now a historical resource and should not be relied upon. A new mineral resource estimate has been prepared, and Pistol Bay expects to receive it shortly.

Technical information in this news release has been provided or approved by Colin Bowdidge, PhD, PGeo, a qualified person as the term is defined in National Instrument 43-101 and consulting geologist for Pistol Bay.

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.

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