Banks Island Closes Non-Brokered Private Placement Offering, Announces Shares for Debt Arrangement, AGM Results, and Appointment of New CFO

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sept. 17, 2014) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Banks Island Gold Ltd. ("Banks Island" or the "Company") (TSX VENTURE:BOZ) is pleased to announce that the Company has closed its private placement (the "Offering") announced on September 12, 2014. An aggregate of 2,643,600 Flow-Through Units ("Flow-Through Units") were issued at a price of $0.50 per Flow Through Unit for gross proceeds of $1,321,800.

Each Flow-Through Unit consists of one flow-through common share ("Flow-Through Share") and one-half of one transferrable share purchase warrant ("Warrant"). Each whole warrant entitles the holder thereof to acquire one non-flow-through common share ("Common Share") in the capital of the Company at a price of $0.60 per Common Share for a period of twenty-four (24) months following the closing of the Offering. Warrants will NOT be listed for trading. The gross proceeds from the issue of the flow through shares (as defined in the Income Tax Act (Canada)) (the "Tax Act") included in the Flow-Through Units will be used on qualifying "flow-through mining expenditure" (as defined in the Tax Act) related to the Company's exploration projects. The Company intends to renounce Canadian Exploration Expenses (as defined in the Tax Act) with an effective date of no later than December 31, 2014.

The Company paid Secutor Capital Management Corp. a fee of $105,744 equal to 8% of the gross proceeds received by the Company from the sale of the Flow-Through Units and issued 211,488 non-transferable finder warrants ("Finder Warrants"). Each Finder Warrant entitles the holder thereof to purchase one Common share at a price of $0.70 for a period of 18 months following the closing of the offering.

The securities issued pursuant to the Offering are subject to a hold period expiring on January 18, 2015.

The Company intends to use the net proceeds of the Offering for continued exploration and development activities on its Yellow Giant Gold Property located on Banks Island in British Columbia.

The securities have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "1933 Act"), or under any state securities laws, and may not be offered or sold, directly or indirectly, or delivered within the United States or to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the 1933 Act) absent registration or an applicable exemption from the registration requirements. This news release does not constitute an offer to sell or a solicitation to buy such securities in the United States.