Pure Gold Drilling Commences Extensive 2017 Exploration Program

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan. 11, 2017) - Pure Gold Mining Inc. (TSX VENTURE:PGM) ("Pure Gold" or the "Company") is pleased to announce the launch of its 2017 exploration program at the Company's 100% owned Madsen Gold Project ("Madsen"). The phased exploration program is designed to focus on resource growth and concurrently advance Madsen towards operational readiness. Drilling has re-commenced on the project with four diamond drill rigs prioritized for the McVeigh, Austin and A3 targets of the Madsen Mine. In addition, Pure Gold has now received the necessary approvals to re-open the McVeigh Portal ("Portal") and ramp and mining contractors have been mobilized to site to commence site preparations.

2017 Exploration Program Commences

Phased Approach to Resource Growth:

• a four-rig program with up to 70,000 metres of diamond drilling, collared from both surface and underground;
  • surface drilling to expand resource through wider step-outs at the McVeigh, Austin and A3 targets (commenced January 2017); and
  • underground drilling to drill off near surface mineralization and better define anticipated mining shapes (scheduled commencement late Q1).
• a H2-2017 resource update to incorporate >150,000 metres of new diamond drilling since last resource.

McVeigh Underground Exploration Project:

• re-establish services to the existing Portal and ramp including power, heating and ventilation;
• assess and secure ground conditions and complete detailed geologic mapping and sampling; and,
• establish underground drill bays to optimize delineation of near-surface mineralization in the McVeigh and Austin horizons.

"Exploration drilling has been highly successful in expanding gold mineralization in multiple targets, all in close proximity to the existing infrastructure and open for expansion," stated Darin Labrenz, President and CEO of Pure Gold. "With the completion of the 2016 program, we look forward to the next phase of Madsen's evolution as we re-open the Portal and commence exploring from underground, utilizing the existing ramp which provides access to the top 150 vertical metres. Our team is focused on expanding the current resource and providing a framework for expanding the current base case production scenario at Madsen."