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Banks Island Gold Makes Significant Progress towards Completion of Grinding and Flotation Circuits at Yellow Giant

Banks Island Gold Ltd. (the "Company") is pleased to report an update on progress at the Yellow Giant Gold Property, located on Banks Island, British Columbia.

The Company has made significant progress towards completion and commissioning of the grinding and flotation sections of the mineral process plant. Company engineers and Halyard Inc. have been responsible for project management to oversee this work. All major equipment is now in place and company crews are now completing piping, pumps, and electrical work. The Company plans to begin commissioning of the grinding and flotation sections in late-July and begin production of flotation concentrate in early August 2014.

Design and construction of additional improvements will continue after commissioning. A gold room is planned to be commissioned in late August for upgrading gravity recoverable gold into a direct smelting gold product. An onsite assay laboratory facility is planned to be constructed and commissioned in September. Design and construction of all facilities are being handled by Company employees.

GRINDING AND FLOTATION CIRCUITS

The Company continues work towards completion of installation and commissioning of the grinding and flotation circuits of the process plant. The grinding and flotation modules are now installed, the thickeners are erected and mechanically complete, both filter presses have been erected, and the mill feed conveyor has been erected and commissioned. The diesel gensets, which include primary and backup power with a combined capacity of 3.2MVA, are installed and are due to be commissioned and tied into the site power system. The stock tanks and agitators are to be erected shortly and piping and electrical installations are in progress and nearing completion. The company plans to commence Cold Commissioning in the next week to be followed by Hot Commissioning. The running of ore through the plant is anticipated to start in late July with production of flotation concentrates expected to commence in early August.

A photo of the processing plant, as at July 10th 2014, is displayed in Figure 1.

To view 'Figure 1 - Yellow Giant Process Plant - July 1st 2014', please visit the following link: http://media3.marketwire.com/docs/bank0711.pdf

Mr. Benjamin Mossman P.Eng, CEO of Banks Island Gold is the qualified person who reviewed and approved the contents of this news release.

The Company is a mining company focused on gold production, exploration, and development of economically viable mineral resources. The Company's mineral property is located in British Columbia. For more information, please refer to the Company's website at Banks Island Gold Ltd.

ON BEHALF OF THE BOARD OF DIRECTORS

Benjamin W. Mossman, P.Eng, President, Director, & Chief Executive Officer

Source:

Banks Island Gold Ltd

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