Banks Island Gold Ltd. Provides Update and Releases Second Quarter Financial Statements

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct. 30, 2014) - Banks Island Gold Ltd. (TSX VENTURE:BOZ) (the "Company") reports that the second quarter, 2015 Financial Statements ("Q2", from the period of June 1, 2014 to August 31, 2014) have been released and are available on www.sedar.com and the Company's website.

Q2 was a transitional period for the Company as production shifted to the production of flotation and gravity gold concentrates with the addition of the grinding and flotation circuits. The Dense Media Separation Plant ("DMS") plant was shut down on June 11, 2014 in order to complete the tie-in between the DMS plant and the grinding and flotation sections. Production of flotation concentrate commenced on August 7, 2014. No production from the property occurred in the period from June 11 to August 7, 2014.

Processing Plant Update

The Company has been ramping up production since full commissioning commenced on August 7, 2014. In August the Company produced 297 dry metric tonnes ("dmt") of flotation concentrate which graded 74 grams per tonne ("gpt") gold and 185gpt silver. In August the flotation plant averaged a throughput of 78dmt per day and gold recovery in the flotation circuit averaged 91%.

In September the Company produced 584dmt of flotation concentrate which graded 72gpt gold and 192gpt silver. The Company also produced 11dmt of gravity concentrate which graded 1,110gpt gold and 838gpt silver. In September the flotation plant averaged a throughput of 173dmt per day and gold recovery in the flotation circuit averaged 89%.

In October, up to October 25, 2014, the Company produced 457dmt of flotation concentrate which graded 68gpt gold and 341gpt silver. During the month the Company stockpiled all of its gravity gold concentrates for further processing on the newly installed concentrating table once commissioning is complete. In October, up to October 25, 2014, the flotation plant averaged a throughput of 168dmt per day and gold recovery in the flotation circuit averaged 86%.

The Company is currently planning to process all gravity gold bearing material inventoried in falcon concentrate and in the recirculating load of the grinding section. The Company's plan is to process the material using the newly installed concentrating table to produce a high grade gold concentrate for direct smelting. Results of the production of gravity recoverable gold will be released with a summary of gold production in the month of October 2014 at the earliest opportunity.