Mr. Darin Labrenz reports

PURE GOLD MINING RAISES $12.3 MILLION FROM THE EXERCISE OF SHARE PURCHASE WARRANTS

Pure Gold Mining Inc. has raised $12.3-million from the exercise of 14,465,000 share purchase warrants with a strike price of 85 cents, representing 100 per cent of the warrants that otherwise would have expired May 24, 2020.

On closing of the recently announced private placement, Pure Gold will have approximately $101-million in cash, along with $35-million (U.S.) available in an undrawn credit facility.

With approximately $150-million available in financing and $86-million remaining on capital expenditure to complete its mine construction, the company is in a uniquely solid financial position to be able to concurrently finance an aggressive exploration program. Commencing June 3, this program will include underground drilling focused on the expansion of mineral resources in areas targeted for early production, as well as expansion of new high-grade discoveries at surface and at depth across the company's 47-square-kilometre property. This drilling will enable the company to accelerate its resource growth plan, without impacting its capital budget for final mine completion and first gold pour.

"The past week has bolstered our balance sheet and added depth to our shareholder base. I'd like to thank our long-term shareholders, including AngloGold Ashanti for maintaining their shareholdings in Pure Gold (at about 15 per cent) through the exercise of warrants. And I'd also like to thank Eric Sprott for his increased support (about 12 per cent) and for recognizing not only the value of our near-term gold production, but also the explosive value creation that comes from ongoing discoveries and resource growth in one of the highest-grade mines in the world," said Darin Labrenz, president and chief executive officer. "Our mine has all the attributes of a company maker -- location, grade, size and transformative growth potential. The opportunity for value creation is tremendous, with near-term cash flow delivered in a rising gold market, and a strong organic growth platform to build out our vision of a long-life growth company. Having only scratched the surface across our plus-seven-kilometre-long high-grade gold system, we are taking measures to expedite our growth plan. New funds will be earmarked for aggressive exploration work that will fast-track discovery and resource development in a phased approach to realizing the true potential of our scalable Pure Gold mine."

About Pure Gold Mining Inc.

The Pure Gold Red Lake mine is Canada's next gold mine. Fully financed, the project is on track to deliver near-term gold production into a rising Canadian gold price environment, with first production scheduled for late 2020. The orebody is situated within a seven-kilometre-long gold system that is wide open for expansion at depth and along strike, and multiple discoveries by the company suggest potential opportunities for near-term growth.

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