IBC International Bethlehem Mining Corp

Barkerville Gold Mines Ltd. ("Barkerville" or the "Company") (TSX
VENTURE:BGM)(FRANKFURT:IWUB) announces that it has entered into a Letter of
Intent effective September 2, 2010 (the "LOI") with International Bethlehem
Mining Corporation (TSX VENTURE:IBC) ("IBC") to purchase Bethlehem Resources
(1996) Corporation ("BRC"), a wholly-owned subsidiary of IBC, and its Goldstream
Mill facility, tailings pond and related mineral leases and claims (the
"Acquisition"). 


It is the Company's intention, subject to approvals, to relocate, refurbish and
upgrade the Goldstream mill facility to the base of Cow Mountain, near Wells,
BC, where two of Barkerville's NI43-101 gold resources and proposed open-pit
deposits are located in Central British Columbia. Upon relocation, the Company
plans to upgrade the mill with an additional ball mill and a carbon-in-pulp
circuit, to an increased capacity of 2,000 tonnes per day. The Company's Bonanza
Ledge proposed open-pit mine on the adjacent Barkerville Mountain is currently
in the BC Mines Act approval process. The Cariboo Gold Project, encompassing Cow
Mountain, is anticipated to re-enter the BC Environmental Assessment Process in
the 4th Quarter of 2011.


J. Frank Callaghan, President and CEO of the Company commented "Having just
achieved commercial gold production at the Company's QR Gold Mine & Mill, we are
pleased to have the opportunity to potentially increase the Company's gold
production profile with the addition of a second milling facility in close
proximity to our other two deposits".


The Goldstream Mill is a custom mineral processing plant and is located in the
Revelstoke Mining Division, approximately 90 km north of Revelstoke, BC (via Hwy
23). The Goldstream Mill is currently on care and maintenance, however, has a
nameplated milling capacity of 1,360 tonnes per day and residue from such
operations can be accommodated in the adjacent tailings pond and surrounding
properties.


Pursuant to the LOI, the Company will pay IBC an aggregate purchase price of
$3,300,000 for BRC and the Goldstream Mill facility and related assets and
properties. The Company will satisfy the purchase price by paying IBC a $50,000
deposit, a $200,000 due diligence fee, $250,000 on each of the 6 month and 12
month anniversaries of the Closing Date and $550,000 on the 18 month anniversary
of the Closing Date. The Company will also issue $2,000,000 worth of shares of
the Company to IBC by issuing $500,000 worth of shares on each of the Closing
Date, the 6 month anniversary, 12 month anniversary and 18 month anniversary of
the Closing Date. The number of shares to be issued to IBC will be calculated
based on the volume weighted-average price of the Company's shares for the 10
trading days ending on the day prior to the Closing Date, 6 month anniversary,
12 month anniversary and 18 month anniversary of the Closing Date, as
applicable. 


The Acquisition will be subject to certain conditions including the execution of
the Definitive Agreement and TSX Venture Exchange approval.


About Barkerville Gold Mines Ltd.

The Company has been developing its Cariboo Gold Project in Barkerville, B.C.,
which encompasses (from northwest to southeast) the former producing
Hardscrabble Tungsten Mine, Mosquito Creek Gold Mine (now on care and
maintenance), Aurum Mine, Island Mountain Mine, Cariboo Gold Quartz Mine,
Bonanza Ledge (proposed mine), the Cariboo Thompson Gold & Silver Mine and the
Cariboo Hudson Mine. The Company commenced operations in the Cariboo District in
1994 and since that time has focused on the exploration and development of its
gold properties. Mineral tenures in the Historic Cariboo Goldfields encompass
approximately 111,000 hectares (275,000 acres) over a 60 km long by 20 km wide
belt. In the Barkerville Gold Camp, 101 creeks have reported placer gold
production. Recorded gold production from the area totals more than 3.8 million
ounces, including an estimated 2.64 million ounces from placer mining and 1.23
million ounces from lode mining. The Company began gold dore production in
September of 2010 and does not have any of its future gold production hedged.


On Behalf of the Board of Directors, 

J. Frank Callaghan, President and CEO

This News Release contains forward-looking statements. Forward-looking
statements are statements which relate to future events. These statements are
only predictions and involve known and unknown risks, uncertainties and other
factors that may cause our or our industry's actual results, levels of activity,
performance or achievements to be materially different from any future results,
levels of activity, performance or achievements expressed or implied by these
forward-looking statements. While these forward-looking statements, and any
assumptions upon which they are based, are made in good faith and reflect our
current judgment regarding the direction of our industry, actual results will
almost always vary, sometimes materially, from any estimates, predictions,
projections, assumptions or other future performance suggested herein. Except as
required by applicable law, the Company does not intend to update any of the
forward-looking statements to conform these statements to actual results.

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