Mr. Rolly Uloth reports

WESDOME INCREASES RESERVES 57% AT EAGLE RIVER MINE

Wesdome Gold Mines Ltd. has had significant increases in mineral reserves for its 100-per-cent-owned Eagle River and Mishi gold mines, located west of Wawa, Ont. Mineral reserves and resource estimates are updated as at Dec. 31, 2014.

Highlights:

• Eagle River proven and probable reserves increase 57 per cent to 265,000 ounces at an average grade of 10.1 grams per tonne gold.
• Mishi proven and probable surface minable reserves increase 8 per cent to 121,000 ounces at an average grade of 2.1 grams per tonne gold.
• Reserve blocks remain open to expansion.
• Significant increases in definition drilling are planned in 2015, particularly at the open pit Mishi mine, to further expand mineral reserves and mineral resources.

Rolly Uloth, president, commented: "In 2014, we modestly increased drilling and dramatically increased mineral reserves. This work demonstrates the potential of the recently discovered parallel structures, which, along with the mine's main producing structure, remain open laterally and at depth. In 2015, the company will focus on demonstrating the long-term potential of our producing mines in this camp. So far in this regard we have accomplished significant reserve increases net of depletion, upgraded resources to reserves, increased milling capacity and validated the new parallel zones. These building blocks put the company in a position of strength to capitalize on our internal growth prospects and see forward well beyond five years. Importantly, reserves demonstrate high grades with fully diluted underground grades of over 10 grams per tonne and open pit grades over two grams per tonne. These grades provide both a strong defence and natural hedge should gold prices unexpectedly decline and represent tremendous upside margin leverage at current or improved gold prices."

George Mannard, vice-president, exploration, added: "It is important to note that after 20 years of production, underground exploration at Eagle River has been relatively shallow, with the deepest drilling to date intersecting high-grade mineralization at 1,300 metres and the deepest production level currently at 836 metres. The parallel zone structures remain open laterally and at depth, and they represent exploration targets and internal expansion opportunities for many years to come."

                     MINERAL RESERVES AND RESOURCES*                      
                                        
                                                    Dec. 31,    Dec. 31, 
                                                        2014        2013

                                           Grade          Contained gold
Mine          Category        Tonnes    (g/t Au)                (ounces)

Eagle           Proven       141,000         8.5      39,000      41,000
River         Probable       675,000        10.4     226,000     128,000
                   P+P       816,000        10.1     265,000     169,000
Mishi           Proven       159,000         2.4      12,000      16,000
              Probable     1,627,000         2.1     109,000      96,000
                   P+P     1,786,000         2.1     121,000     112,000
Total                                                386,000     281,000

At the Eagle River mine, reserves increased 57 per cent, net of depletion. Previous indicated resources and a portion of inferred resources were converted to reserves through detailed drilling and development work. Both the recently discovered No. 7 and 300 zones stood up well to definition drilling and remain open in all directions. The development drift to the 300 zone is 30 metres from completion, allowing for rapid incorporation into the near-term mine plan. Mineralization in the mine's main 8 zone structure remain open at depth.

At Mishi, the current plan demonstrates a life-of-mine stripping ratio of less than 3:1. Open pit reserves increased 8 per cent, net of depletion, with the addition of a western extension. Mineralization remains open to the east and west. Surface exploration and delineation drilling in 2015 are designed to extend known mineralization and further increase near-surface mineralization in a systematic manner.

In 2014, considerable work was undertaken to improve the efficiency and capacity of the company's milling operations. While the mill performed admirably in 2014 as compared with past years, an expansion of the Mishi open pit reserves may provide much larger quantities of ore for the existing plant. Drilling planned at Mishi in 2015 will provide the basis to analyze the future potential for a much larger throughput plant. With reserves of 386,000 ounces at the company's operating mines, it can now look out well beyond a five-year time horizon.

In addition to the company's operating mines, Wesdome's resource base is complemented by significant indicated and inferred gold resources found on its 100-per-cent-owned Val d'Or, Que., properties and the large Moss Lake deposit near Thunder Bay, Ont. For details regarding these non-operating assets, please review 43-101 technical disclosure available at the company's website or SEDAR.

                       ADDITIONAL MINERAL RESOURCES*
                                                      Dec. 31,    Dec. 31,
                                                          2014        2013

                                           Grade            Contained gold
Mine          Category        Tonnes    (g/t Au)                  (ounces)

Eagle
River         Inferred       292,000         8.5        80,000     105,000
Mishi        Indicated     3,688,000         2.1       248,000     248,000
open pit      Inferred       764,000         2.4        59,000

Mishi        Indicated       567,000         4.5        82,000      82,000
underground   Inferred       437,000         5.8        81,000      81,000
Total        Indicated                                 330,000     374,000
              Inferred                                 220,000     245,000

The company is a producing issuer as per National Instrument 43-101 Section 5.3.

* All mineral reserves and mineral resources estimates have been made in accordance with the standards of the Canadian Institute of Mining, Metallurgy and Petroleum and National Instrument 43-101 and assume a gold price of $1,400 per ounce.

All mineral resources are in addition to mineral reserves.

Mineral resources are not in the current mine plan and therefore do not have demonstrated economic viability.

As per Section 4.2 (b)(ii) of National Instrument 43-101, the change in mineral reserves and resources for the Eagle River and Mishi mines does not constitute a material change in the affairs of the company. For the Eagle River mine, refer to the technical report filed on SEDAR, dated December, 2005, by Strathcona Mineral Services Ltd.

All mineral reserves and resources at Eagle River employ a 1.5-metre minimum width, a 3.0 g/t Au minimum grade for continuity and include 1.0 m of external dilution.

The Mishi mine mineral resource estimates were completed by InnovExplo Inc. in a 43-101 technical report dated Aug. 25, 2010, and filed on SEDAR. The initial Mishi mineral reserves estimates were compiled in a 43-101 report by InnovExplo dated Jan. 12, 2011, and also filed on SEDAR.

At Mishi, proven reserves include broken ore, stockpiles and the remainder of two five-metre benches in progress (bench 2990 and 2995). A 1.0 g/t Au cut-off grade is employed.

Mishi resources are based on InnovExplo's 2010 model employing a 1.0 g/t Au cut-off grade. This has been adjusted to reflect production, broken ore and stockpiles mined from 2012 to 2014. Actual ore mined and milled reconciles very well with the block model. This is clearly a robust and reliable model to date and is carried forward subject to production reconciliation.

Qualified persons for the mineral reserves and mineral resources estimates as per 43-101 are as follows:

• Eagle River:
  • George Mannard, PGeo, vice-president, exploration, Wesdome Gold Mines.

• Mishi:
  • Reserves:
    • Daniel Lapointe, PGeo, chief geologist, and George Mannard, PGeo, vice-president, exploration, both Wesdome Gold Mines;
  • Resources:
    • Based on a resource estimate by Karine Brosseau, PEng, and Carl Pelletier, PGeo, InnovExplo, independent consultants, dated Aug. 25, 2010. This estimate has been reconciled to 2012, 2013 and 2014 production and stockpiles by Daniel Lapointe, PGeo, chief geologist, Wesdome Gold Mines.

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