Pure Gold Drilling Commences Extensive 2017 Exploration Program - Seite 2

Receipt of Approval to Re-Open the Existing Portal and Ramp

Approval to re-open the Portal to allow for underground exploration was received from Ontario's Ministry of Northern Development and Mines in late December 2016. The Company now has all necessary approvals and work has begun to re-establish required services to the Portal and ramp.

The Portal, established in the 1990s, is located approximately one kilometer from the mill and provides ramp access to the top 150 vertical metres of mine workings. Currently, the ramp declines in the footwall of the McVeigh horizon, extending for 1,080 linear metres from surface to just above three level. Opening the Portal will provide immediate access to the footwall of the McVeigh and Austin horizons allowing for cost effective underground drilling which is expected to provide sufficient drill density to better define possible mining shapes, as well as allow exploration drilling to continue to expand the resource. It will also allow for a field inspection of the underground headings, including rock mass characterization, as well as detailed underground geological mapping and sampling to refine the structural setting. Work either completed or in progress includes:

• awarding of the mining contract for support of the advanced exploration project to Dumas Contracting Ltd;
• clearing of powerline from Pure Gold's milling facility to re-connect the Portal and ramp to grid power;
• purchase of power components as well as ramp ventilation and heating systems; and
• establishment of surface support infrastructure at the Portal

Currently it is anticipated that the Portal will be re-opened in February with underground diamond drilling scheduled to begin by the end of the first quarter.

Completion of the 2016 Exploration Program

With receipt of final assays, Pure Gold has completed its 2016 exploration work program, successfully intersecting gold mineralization in multiple, related targets with the drilling of approximately 78,800 metres from a total of 237 drill holes. Previously unreported results from the 2016 program include:

• 14.3 g/t gold over 1.0 metres in hole PG16-282 (A3)
• 8.0 g/t gold over 1.8 metres in hole PG16-290 (McVeigh)

The 2016 exploration program led to a breakthrough in geologic understanding, genetically and spatially linking mineralization in multiple settings and demonstrating that intersected gold mineralization remains open for expansion. At Madsen, drilling traced near surface gold mineralization across a 1.2 kilometre strike length, with mineralization remaining open for expansion. Concurrent drilling of the Austin horizon has led to a better understanding of the controls of high grade mineralization resulting in the development of the A3 target, an Austin-parallel gold bearing structure.