BOZ

Banks Island Gold Ltd. (TSX VENTURE:BOZ) - 



--  CDN$7,011,000 in concentrate inventory and proceeds from gold
    concentrate sales in Q1. 
--  CDN$4,226,000 in costs for concentrate charges, royalties, mining,
    processing, and site overhead in Q1. 
--  5,175oz of gold equivalent gold sales and inventory in Q1.



Banks Island Gold Ltd. (the "Company") is pleased to provide an analysis of
financial results for the first quarter of the 2015 fiscal year from the bulk
sample program at the Yellow Giant Gold Property ("Yellow Giant"), located on
Banks Island, British Columbia. 


The Company has released its Financial Statements and Management Discussion and
Analysis for the 1st quarter ("Q1") of the 2015 fiscal year for the period from
March 1st - May 31st 2014. The financial statements can be accessed at
www.sedar.com and should be read in conjunction with this news release.


In Q1 the Company was mining and processing a bulk sample from the Bob Zone at
Yellow Giant Property. Processing was done solely with gravity methods using the
Dense Media Separation Plant and Spiral Concentrator.


Recovered and payable gold and silver sales recognized in Q1 were 5,175oz of
gold equivalent as displayed in Table 1. 


Recovered and payable gold figures are preliminary and subject to change based
on final settlement of sales based on smelter and umpire assays. Recoverable and
payable gold does not include concentrate production that was considered a work
in progress as of May 31st 2014.




                              
  Table 1 - Q1 Recovered and  
  Payable Gold in Concentrate 
                              
------------------------------
Gold                  4,980 oz
Silver               12,657 oz
------------------------------
Gold Equivalent        5,175oz
------------------------------
                                                                            
(i)Gold equivalent is calculated by converting payable silver at a ratio of 
1/65th to payable gold oz.                                                  



As the Company is not yet in commercial production the proceeds and costs
related to gold concentrate production are captured as deferred exploration
expenses in the Q1 financial statements. Readers may reference note 9 in the
Company's Q1 financial statements for additional details. 


The gross proceeds from concentrate sold in Q1 and the amount of concentrate
inventory on hand as of May 31st, 2014 was CDN$7,011,000. The direct costs of
production totaled CDN$4,225,000 and include concentrate charges, royalties,
site overhead, mining, and processing. Income and mineral taxes are not included
in this cost analysis. Details of the direct cost of production are displayed in
Table 2.




                                                                        
  Table 2 - Q1 Proceeds from Concentrate and Direct Cost of Production  
                                                                        
------------------------------------------------------------------------
                                                     $CDN        $CDN/oz
                                          ------------------------------
Proceeds from Concentrate Sold                 $6,124,000               
Inventory of Concentrate                         $887,000               
------------------------------------------------------------------------
Total Proceeds from Concentrate Sold           $7,011,000         $1,355
------------------------------------------------------------------------
------------------------------------------------------------------------
                                                                        
Total Concentrate Charges                      $1,199,000           $232
Estimated Royalties Payable                      $184,000            $36
                                                                        
Site Overhead                                    $681,000           $132
Mining                                         $1,208,000           $233
Processing                                       $954,000           $184
------------------------------------------------------------------------
                                               $2,843,000           $549
------------------------------------------------------------------------
                                                                        
------------------------------------------------------------------------
Total Direct Cost of Production                $4,226,000           $816
------------------------------------------------------------------------
------------------------------------------------------------------------



As discussed in previous news releases, the Company has been constructing a
grinding and flotation circuit to improve gold recovery and concentrate grade
which is expected to have a significant positive impact on gold production and
concentrate charges. 


The Company has provided a comparison of gold recovery, concentrate grade, and
payable metals for the results of Q1 using DMS processing versus the
metallurgical testwork for the Bob Zone, as disclosed by news release on October
22, 2012, for grinding and flotation processing is displayed in Table 3. Gold
payable from concentrate varies with concentrate grade and is based on the sales
contract with Metallica Commodities Corp.


This comparison illustrates the potential impact that the addition of the
grinding and flotation sections will have on costs at the Yellow Giant property
in the future. For example, an increased gold recovery would reduce site
overhead, mining, and processing costs on a per oz basis and increased
concentrate grade would reduce concentrate charges on a per oz basis.


As discussed by news release on July 10th the Company has a significant quantity
of DMS fines which will be re-processed using the grinding and flotation
sections in order to recover gold that was not recoverable from processing
through the DMS plant during Q1.




                                                                    
   Table 3 - Projection of Grinding and Flotation Circuit Addition  
                                                                    
--------------------------------------------------------------------
                                          Q1   Test-work    Variance
--------------------------------------------------------------------
Estimated Gold Recovery                  68%         93%        +37%
Average Concentrate Grade              58gpt      127gpt       +119%
Average Payable Gold                   88.7%       90.5%         +2%
--------------------------------------------------------------------



Benjamin Mossman, P.Eng. is the qualified person who reviewed and approved the
contents of this news release. 


The Company is not basing its production decision on a feasibility study of
mineral reserves with demonstrated economic and technical viability. Banks
Island Gold Ltd. has decided to put the Property into production without first
establishing mineral reserves supported by a NI43-101 compliant technical report
and feasibility study. The Company cautions readers that such production may not
be economically feasible and historically such projects have a much higher risk
of economic or technical failure.


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 www.banksislandgold.com.


ON BEHALF OF THE BOARD OF DIRECTORS

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

The TSX Venture Exchange has not reviewed and does not accept responsibility for
the accuracy or adequacy of this release. Neither the TSX Venture Exchange nor
its Regulation Service Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of
this release.


This press release contains forward-looking statements. All statements, other
than statements of historical fact, constitute "forward-looking statements" and
includes statement regarding the timing for completion of the grinding and
flotation circuits, its effect on gold recovery, grade and average payable gold,
as well as any other information that addresses activities, events or
developments that the Company believes, expects or anticipates will or may occur
in the future including the Company's strategy, plans or future financial or
operating performance and other statements that express management's
expectations or estimates of future performance.


Forward-looking statements are generally identifiable by the use of the words
"may", "will", "should", "continue", "expect", "anticipate", "estimate",
"believe", "intend", "plan" or "project" or the negative of these words or other
variations on these words or comparable terminology. These statements, however,
are subject to known and unknown risks, uncertainties and other factors that may
cause the actual results, level of activity, performance or achievements of the
Company to be materially different from those expressed, implied by or projected
in the forward-looking information or statements. Important factors that could
cause actual results to differ from these forward-looking statements include but
are not limited to: risks related to the exploration and potential development
of the Company's project, the actual results of current exploration activities,
conclusions of economic evaluations, changes in project parameters as plans
continue to be refined, future prices of gold, as well as those factors
discussed in the sections relating to risk factors of the Company Annual
Information Form dated February 22, 2013 filed on SEDAR.


There can be no assurance that any forward-looking statements will prove to be
accurate, as actual results and future events could differ materially from those
anticipated in such statements. Accordingly, the reader should not place any
undue reliance on forward-looking information or statements. Except as required
by law, the Company does not intend to revise or update these forward-looking
statements after the date of this document or to revise them to reflect the
occurrence of future unanticipated events.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Banks Island Gold Ltd.
Benjamin W. Mossman
604-245-0066

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