Mr. Charles Desjardins reports

PISTOL BAY CLARIFIES EXCLUSIVITY AGREEMENT

Pistol Bay Mining Inc. has taken this opportunity to clarify its news release issued Sept. 5, 2018.

At the present time, the company has not entered into an agreement to market the nutraceutical products referenced in the news release issued yesterday. The company has entered into an exclusivity agreement with a private Ontario company executed by the parties on Sept. 4, 2018, that allows Pistol Bay to undertake due diligence on the products, the intellectual property surrounding the products and the market opportunities for both the foundational product, as well as new product applications containing cannabinoids. The agreement restricts Privco from negotiating for the sale or licensing of the products to third parties for a period of 60 days. The parties are at arm's length. No business or financial terms have been agreed to at this point and there can be no assurance that Pistol Bay will decide to proceed with a transaction following completion of due diligence, or that the parties will agree on financial or business terms. If such an agreement is entered into, such transaction would likely constitute a change of business pursuant to the policies of the TSX Venture Exchange. In such case trading will be halted pending the approval of such transaction by the TSX Venture Exchange.

The company wishes to clarify certain information relating to the products which are the subject matter of the current due diligence being undertaken. Privco has advised that it has invested $5.5-million to date in the development, and clinical testing of its foundational product, which has sold commercially since 1991. This foundational product, primarily sold through multilevel marketing companies, is mainly a combination of botanicals that contain multiple molecules that contribute to delivering therapeutic effects, including stress reduction and anti-aging. The foundational product holds an NPN (natural health number), which was issued by Health Canada, and Privco advises that retail sales of the product by third party licensees has totalled approximately $500-million (U.S.) to date.

Privco has developed a product that combines its foundational product with cannabidiol molecules. CBD is a plant-based molecule that is getting a lot of attention recently for its many benefits including treating pain, anxiety, inflammation and epilepsy. Privco believes that CBD, when combined with its foundational product, could enhance the efficacy of the CBD.

Privco is also developing a second product -- a full-spectrum soft gel -- which will contain solely CBD. Neither of these products has been made available for commercial sale and they remain subject to further development and clinical trials.

The company also wishes to clarify that the statement from the Sept. 5, 2018, news release, "We are unique worldwide in that our adaptogenic blend increases the bioavailability and bioefficacy of the cannabinoids significantly," was meant to reference a statement put forward by Privco in its current marketing materials. At present, Pistol Bay undertakes no activity in this line of business.

Investors are cautioned that until such time as a definitive transaction agreement is entered into, and a management information circular or filing statement is prepared in connection with such a transaction, any information released or received with respect to the potential transaction may not be accurate or complete and should not be relied upon. Trading in the securities of Pistol Bay should be considered highly speculative.

About Pistol Bay Mining Inc.

Pistol Bay Mining is a diversified junior Canadian mineral exploration company with a focus on zinc and base metal properties in North America. The company is also actively pursuing the right opportunity in the cannabis space to enhance shareholder value.

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