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Pure Gold Adds Fourth Diamond Drill Rig at 100% Owned Madsen Gold Project

Pure Gold Mining Inc. ("Pure Gold" or the "Company") is pleased to announce the addition of a fourth diamond drill rig at the Company's 100% owned Madsen Gold Project ("Madsen"), as well as an update on the re-opening of the existing McVeigh Portal.

Additional Drill Rig Added to Test Russet South and Other Satellite Targets

The addition of a fourth drill rig allows for exploration to advance on satellite targets, including Russet South, without reducing the exploration program currently focused at the McVeigh Horizon. A total of 5,000 metres of drilling is currently planned to be completed on satellite exploration targets by the end of the year, with the goal of discovering high grade mineralization at new targets and expanding the near surface, high grade mineralization discovered to date at Russet South.

Russet South is a high priority target that lies approximately 1.5 kilometres west of the McVeigh horizon and associated Madsen mine infrastructure. Drilling and channel sampling to date has defined high grade gold at three separate targets near surface. These targets share a similar geologic setting to Madsen's high grade 8 Zone which is located 1.6 kilometres down dip on the same geologic contact.

Update on Development Plan to Re-Open the Existing McVeigh Portal

The Project Description for the McVeigh Portal Advanced Exploration Project has been submitted to the Ministry of Northern Development. They have briefed the appropriate representatives at partner ministries as well as the technical reviewers and an interagency review will be scheduled in the near future. The Company anticipates having all necessary approvals to open the portal in Q4 2016.

The McVeigh Portal is located approximately one kilometer from the mill and currently provides ramp access to the top 150 vertical metres of mine workings. Opening the portal will 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, further characterize mineralization and aid in additional targeting at McVeigh. The ramp will also provide access to the footwall of the McVeigh and Austin horizons which will allow for underground drilling to further test mineralization.

Madsen 2016 Exploration Program

Pure Gold's expanded 2016 exploration program is on-going with three drill rigs currently testing the McVeigh horizon and one drill rig testing satellite targets. 51,000 metres of core drilling is currently budgeted for 2016, with 24,916 metres completed and released to date. Further results will continue to be released as available.

For a complete list of 2016 drill results to date, click link below:

http://puregoldmining.ca/sites/default/files/2016-DH-Intercepts-Table-August-09.pdf

For a map showing exploration targets at Madsen, including Russet South, click link below:

http://puregoldmining.ca/sites/default/files/PGM-Madsen-Exploration-Targets-2016.pdf

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