Banks Island Gold Ltd. Provides Update and Releases Second Quarter Financial Statements - Seite 2

Commercial Production Update

The Company's has not yet declared commercial production for the Yellow Giant Project. The declaration of Commercial Production will be based on an evaluation of production criteria which includes mill throughput, gold recovery, and gold production. The declaration of commercial production is a matter of judgement and is at the discretion of the Board of Directors. In general, the criteria being used by the Board of Directors while assessing whether the criteria for commercial production have been satisfied include, but are not limited to, sustainable production which approaches mill throughput of 200tpd, gold recovery of 90%, and gold production of 77oz gold equivalent per day over a reasonable period of testing. Once all criteria have been met at a sustainable level the Company will declare commercial production for the Yellow Giant Project.

Mineralized Material

As at October 29, 2014 the Company has the following mineralized material in stockpiles or in production.

• Surface Stockpile of 5,000 tonnes from Bob and Tel Zones.
• Underground broken inventory of 7,000 tonnes at the Tel Main Zone and 2,000 tonnes at the Bob Zone.
• DMS fines stockpile of 3,000 tonnes which are composed of material rejected by the Spiral Concentrator.

The Company currently has an additional 24,000 tonnes of mineralized material in the Tel Zone fully developed and ready for production mining of which 5,000 tonnes is drilled and ready to blast. The Company continues production mining and mine development at the Tel Zone and other zones at Yellow Giant in order to maintain a healthy inventory of material available for processing.

Jasperoid

During mining of the T30 Central level, Company geologists noted unusual amounts of micro-crystalline quartz breccia within the mineralized vein. This rock type, which has been provisionally named "Jasperoid", makes up the eastern third of the Central Zone between T20 and T30 levels. The majority of Jasperoid samples contain low sulphur, which suggests that gold is present as free grains of electrum or native gold. The Company is currently performing test work before further processing of this minor subsection of the resource to ensure optimum recovery of gold from this area.