Mr. Ken Donner reports

PURE GOLD COMMENCES TEST MINING AT MADSEN GOLD PROJECT

Pure Gold Mining Inc. has extended the Madsen decline by 87 metres and commenced test mining within the first of two planned stopes from the McVeigh zone. Mining through 13 metres of new linear development along the mineralized structure has returned muck samples averaging 18.8 grams per tonne gold and chip samples averaging 15.3 g/t gold. Results thus far have exceeded expectations in terms of grades and widths and have highlighted the clear visual nature of the mineralization.

The test mining is scheduled to complete in September, 2018, with the planned extraction of approximately 7,200 tonnes of mineralized material. The results from the test mining will be used to demonstrate lateral and vertical continuity of mineralization, as a validation of the resource model, and to provide geotechnical data in support of the continuing definitive feasibility study (DFS). To date mineralization is strongly visual, characterized by silicification, diopside veining, brown biotite, and pale pink to brown potassium feldspar alteration, and the presence of visible gold. Mineralization mined thus far supports the geometry of the geological model, exceeds the estimated resource with respect to gold grades, and exhibits excellent geotechnical conditions.

                                  TEST MINING RESULTS FROM STOPE 1                                                               
                                                                                                         
                    Width*    Estimated tonnes    Muck sample gold grade**     Chip sample gold grade**
                       (m)                                           (g/t)                        (g/t)

Composite results      4.4                 450                        18.8                         15.3
                 
* True width. 
** Individual samples cut to 100 g/t Au.                                                      

Ken Donner, vice-president, operations, commented: "Our test mining and bulk sample program are key components of the Madsen gold project definitive feasibility study. Ramp development was rapidly completed in excellent ground conditions, allowing lateral development to commence in late June. Thus far, the underground geological team has demonstrated the ability to identify and follow the mineralized structure, and development has returned wide zones of high-grade mineralization through the first stoping unit. Grade control results to date have exceeded the resource model in this area. Near-surface, ramp-accessible high-grade gold will form an important component of the mine schedule during a period when capital payback is important."

The bulk sample program is designed to partially test two proposed stopes from the McVeigh zone, with an expected overall grade of approximately 8.1 grams per tonne gold estimated from within the two stopes. Within the area tested by mining thus far, the resource model estimated an average grade of 14.3 g/t gold, with an average width of approximately four metres. To date, the company has completed 87 metres of ramp development to access the bulk sample location at a vertical depth of approximately 160 metres and 20 metres of lateral development including 13 metres of development along the mineralized structure.

The company has developed an extensive sampling program to characterize the mineralized material during this test phase. Muck samples are selected in a regular pattern, with five individual muck samples taken from every second scoop bucket, resulting in one muck sample for every two tonnes of mining. Chip samples are collected by utilizing a pneumatic chipper with two sampling lines completed across each development face. In addition, the company is collecting test hole data from each wall approximately one metre back from each face, as well as testing walls with a bazooka core drill.

In addition to bazooka drilling from underground, the company continues to drill from surface as part of an expanded exploration program. Currently two drill rigs are targeting the wedge area, with a goal of expanding the mineralized zones and declaring maiden resources for the area in the fourth quarter of 2018.

About Madsen

The Madsen gold project has historic production of 2.5 million ounces of gold and a current indicated resource of 1,744,000 ounces gold at 8.7 grams per tonne gold (in 6.2 million tonnes) and an inferred resource of 296,000 ounces gold at 7.9 g/t gold (in 1.2 million tonnes). The project benefits from existing infrastructure including a mill and tailings facility, paved highway access, and access to power, water and experienced labour (1). A feasibility study is under way with results expected in the fourth quarter of 2018 and the Madsen gold project is firmly on the path to becoming Ontario's next gold mine.

See the National Instrument 43-101 technical report entitled "Technical Report for the Madsen Gold Project -- Restated Preliminary Economic Assessment and Initial Satellite Deposit Mineral Resource Estimates" with an effective date of Dec. 14, 2017, for complete details, available on the company's website or SEDAR profile.

Quality assurance/quality control and core sampling protocols

All underground samples and bazooka drill core samples are bagged, sealed and submitted to SGS in Red Lake, Ont., for sample preparation by crushing to 75 per cent less than two millimetres, a riffle split of one kilogram and pulverization of the split to better than 85 per cent passing 75 microns. Gold analysis is completed in the SGS Red Lake lab with a 30-gram fire assay and atomic absorption spectroscopy finish (code GE-FAA303). Samples returning greater than 100 g/t Au are reassayed with a gravimetric finish (code GO-FAG303). Control samples (accredited standards, duplicates and non-accredited blanks) were inserted on a regular basis. Results are assessed for accuracy, precision and contamination on a continuing basis.

Qualified persons and National Instrument 43-101 disclosure

Mr. Donner is the designated qualified person for this news release within the meaning of National Instrument 43-101 and has reviewed and verified that the technical information contained herein is accurate and approves of the written disclosure of same.

About Pure Gold Mining Inc.

The company's mandate is pure and simple. To dream big. To colour outside the lines. To use smart science and creativity to unlock the next major discovery at the Madsen gold project in Red Lake, Ont.

We seek Safe Harbor.