PureGold Closes $15 Million Non-Brokered Flow Through Financing

Eric Sprott increases his share ownership to 12%

Not For Distribution To United States News Wire Services Or For Dissemination In The United States

VANCOUVER, British Columbia, June 17, 2020 (GLOBE NEWSWIRE) -- Pure Gold Mining Inc. (TSXV:PGM, LSE:PUR) ("PureGold" or the "Company") is pleased to announce that it has closed the non-brokered private placement of 9,868,421 common shares of the Company that qualified as “flow-through shares” for the purposes of the Income Tax Act (Canada) (the “FT Shares”) at a price of $1.52 per FT Share (the “Financing”), for gross proceeds to PureGold of $15,000,000. Subsequent to the private placement, Mr. Eric Sprott was the back-end buyer of all of the FT Shares.

“This new capital gives us the financial flexibility to launch an aggressive exploration drilling campaign designed to accelerate our goal of resource growth and expansion. While we remain completely focused on our fully-funded mine construction and ramp-up, we strongly believe our mine plan is both scalable, and has the potential to expand. This investment allows us to begin building out our future growth today, concurrent with mine construction activities which remain on-track for first gold production in Q4 2020,” said Darin Labrenz, President & CEO. “We would like to thank Eric Sprott for his continued support of the Company and of our vision of becoming a high-margin, long-life producer in the Red Lake mining district”.

The gross proceeds from the issuance of the FT Shares will be used for “Canadian exploration expenses” and will qualify as “flow-through mining expenditures” (the “Qualifying Expenditures”), as those terms are defined in the Income Tax Act (Canada), which will be renounced to the initial purchasers of the FT Shares with an effective date no later than December 31, 2020 in an aggregate amount not less than the gross proceeds raised from the issue of the FT Shares, and, if the Qualifying Expenditures are reduced by the Canada Revenue Agency, the Company will indemnify each initial purchaser of FT Shares for any additional taxes payable by such subscriber as a result of the Company’s failure to renounce the Qualifying Expenditures as agreed.