Mr. Darin Labrenz reports

PURE GOLD INTERSECTS 34.0 G/T GOLD OVER 11.0 METRES AT STARRATT

Pure Gold Mining Inc. has released results from drilling completed at Starratt, a regional target at the company's 100-per-cent-owned Madsen gold project. Results reported herein are part of the continuing 77,000-metre Madsen drill program and represent the first four drill holes at Starratt, a Madsen-style exploration target associated with the historic Starratt Olsen mine, located 2.2 kilometres south of the Madsen No. 2 shaft. Four drill rigs are currently active on-site, with three rigs testing the McVeigh horizon and one testing satellite targets.

Results from the completed drill holes are outlined in the table.

 
                            MADSEN DRILL RESULTS

Hole ID                   From            To       Length(i)       Gold     
                            (m)           (m)          (m)         (g/t)    

PG16-198                 559.0         570.0         11.0          34.0     
incl.                    561.0         563.0          2.0          27.3     
and incl.                567.0         570.0          3.0         104.1    
PG16-205                                         No significant results                                  
PG16-211                 254.1         255.8          1.7           4.7     
PG16-215(ii)             396.6         397.6          1.0          69.2     

(i) Assay composites were calculated using uncut assays and are 
reported as drilled widths and interpreted to vary between 20 per cent 
and 70 per cent of true widths. It should be noted that PG16-198 has an 
estimated true thickness of 2.3 metres.                                                                    
(ii) Partial results from 395.0 to 399.6 metres by metallic screen fire 
assay. Assaying of hole PG16-215 outside of this interval is 
incomplete.          

Exploration by Pure Gold has defined the setting of mineralization at Madsen, demonstrating that McVeigh is a footwall continuation of the Austin horizon, is open in all directions and remains largely untested. Continuing surface exploration has traced the Austin-McVeigh horizon several kilometres to the south, where a similar setting is present at the historic Starratt Olsen mine. Results to date suggest that the style of mineralization, alteration and host rock bear a strong similarity with the Austin and McVeigh horizons(1).

"We are very excited by these results which support a geologic relationship between the Starratt target and Madsen mine's Austin and McVeigh horizons," stated Darin Labrenz, president and chief executive officer of Pure Gold. "Starratt was a sizable historic mine, and our initial efforts suggest it is a robust target that could potentially support expansion of the production profile at Madsen. The first results from Starratt confirm that it is open downplunge and along strike, and, importantly, point to the scale of the mineralized system present at Madsen highlighting the significant upside potential of Pure Gold's large land package."

The results of Pure Gold's continuing exploration continue to reinforce that new geoscience and innovative ideas along with adequate resourcing can produce new discoveries in a historic mining district. While a portion of Pure Gold's 2016 exploration program has been allocated to advancing satellite exploration targets, the primary focus remains on advancing the McVeigh and Austin horizons at Madsen by continuing to step out below shallow historic mine workings, and testing the depth and strike extents of mineralization.

Historic Starratt Olsen mine

The Starratt Olsen mine operated from 1948 to 1956 and is reported to have produced approximately 163,990 ounces gold at an average grade of 6.17 grams per tonne gold from 823,554 tonnes of ore(2). Underground production at Starratt spanned from surface to a vertical depth of 600 metres, with a strike extent of approximately 1,100 metres. Mineralization at the historic Starratt Olsen mine is of a similar style and setting to that of the Madsen mine with replacement-style, disseminated gold mineralization documented within three contiguous gold-bearing zones. Although much of the historic mining and geologic records from the Starratt operations have been lost, Pure Gold recently located a hard copy data set dating back to 1958. The company has begun capturing the data digitally and integrating them with Pure Gold's extensive proprietary data set for Madsen.

Starratt exploration target

The historic mine and the Starratt target lie within 100-per-cent-owned patent claims that form a core part of Madsen. No mineral royalties apply to this area. The continuing data compilation work has been supported by modern survey data collection including differential GPS and LiDAR data, high-resolution airborne magnetics, and relogging of historic drill core.

Digital geologic mapping at Madsen was initiated upon acquisition of the property, progressing to the south toward Starratt in 2015 and 2016. This work identified a continuation of the stratigraphic units and alteration zones which host the ores at Madsen and provided support for initial drill targeting at Starratt(1). Pure Gold's mapping suggests that the historic zones at Starratt are analogous in geologic setting to the McVeigh, South Austin and Austin horizons with mineralization occurring along structures that intersect geologic contacts at low angles.

Drilling confirms steeply dipping zone beneath Starratt workings

Recent drilling below stopes off of the north end of the Starratt mine has expanded the mineralization significantly downplunge from the mined zones. Drill hole PG16-198 represents the northernmost high-grade gold intercept to date within the Starratt target. Furthermore this hole lies 300 metres below mined stopes in an untested area. The true thickness for this intercept is estimated at 2.3 metres. The low angle of intersection of this hole was expected as initial reconnaissance drilling required targeting from the footwall for logistical reasons (see PG16-198 geologic cross-section figure). PG16-215 intersected high-grade mineralization above stopes at the south end of the historic mine. Together these drill holes span a 1,100-metre strike extent, confirming the robust nature of the mineralized system at Starratt. Further testing of the extents and nature of mineralization at Starratt is continuing and will be prioritized in the context of other high-priority regional targets.

For a map showing the location of Starratt, a long section showing the Starratt target, a cross-section showing drill hole PG16-198, a long section showing Starratt to Madsen and a complete list of 2016 drill results to date, visit the company's website.

Pure Gold's 2016 exploration program is continuing with three drill rigs currently testing the McVeigh horizon and a fourth drill rig testing satellite targets, including Russet South and Starratt. The program is expected to include 77,000 metres of core drilling in 2016. Further results will be released as available.

About Madsen

The Madsen mine operated for over 36 years with historic production of 2.5 million ounces at an average grade of 9.9 g/t gold. The Madsen gold project hosts a permitted mill and tailings facility, and access to power, water and labour. The Madsen gold project has an indicated resource of 928,000 ounces gold at 8.93 g/t gold (in 3.24 million tonnes) and an inferred resource of 297,000 ounces gold at 11.74 g/t gold (in 790,000 tonnes)(2). The mineral resource is based on 13,624 drill holes, evenly dispersed throughout the mineral resource. A robust geologic model based on 27 levels of geological mapping and chip sampling provides a solid understanding of the geology and continuity of mineralization.

In addition to the current mineral resource, the Madsen gold project hosts a number of prospective new discoveries including the Fork zone and Russet South targets, as well as two significant historic underground mines. Pure Gold believes the opportunity exists to advance these targets through the application of modern exploration science and a new understanding of the district.

(1) The proximity and geologic similarities to Madsen do not mean that Pure Gold will obtain similar results at Starratt or other exploration targets on the Madsen property. Starratt is an early-stage exploration project and does not contain any mineral resource estimates as defined by National Instrument 43-101. The potential to define a mineral resource at Starratt or other targets is conceptual in nature, and there has been insufficient exploration to define a mineral resource. It is uncertain if further exploration at these or other targets at Madsen will yield a mineral resource.

(2) See the National Instrument 43-101 technical report entitled "Technical Report on the Preliminary Economic Assessment For the Madsen Gold Project," prepared by Nordmin Engineering Ltd., dated effective April 20, 2016. Mineral resources are not mineral reserves and do not have demonstrated economic viability.

Quality assurance/quality control and core-sampling protocols

Drill core samples are submitted to ALS Minerals in Thunder Bay, Ont., for sample preparation by crushing to 70 per cent less than two millimetres a rotary split of one kilogram and pulverization of the split to better than 85 per cent passing 75 microns. Sample pulps are shipped to the ALS assay laboratory in North Vancouver, B.C., for gold analysis with a 30 g fire assay and AAS finish (code Au-AA23). Samples returning greater than five g/t Au are reassayed with a gravimetric finish (code GRA21). Mineralized zones with visible gold are also analyzed by a one kg screen fire assay with screening to 100 microns. A duplicate 30 g fire assay is conducted on the screen undersize with assaying of the entire oversize fraction (code Au-SCR21). Control samples (accredited standards and non-accredited blanks) were inserted on a regular basis. Results are assessed for precision on a continuing basis.

Qualified persons and NI 43-101 disclosure

Phil Smerchanski, PGeo, vice-president of exploration for the company, is the designated qualified person for this news release within the meaning of National Instrument 43-101, and has reviewed and verified that the technical information contained herein is accurate, and approves of the written disclosure of same.

We seek Safe Harbor.