Banks Island Gold Ltd. announced an update of its recent developments, activities, and exploration plans for the Yellow Giant Gold Property, located on Banks Island, British Columbia. The company is actively exploring and developing the Yellow Giant Property. The company is basing its operations from a 35man floating camp anchored in Wreck Bay. The road building and earthworks required for commencing underground mining and installation of the planned process plant are now complete. Banks Island Gold has completed 1,955m of exploration diamond drilling since April 13, and is currently drilling at the Bob Zone along strike and at depth. Assays are pending and will be reported as received. The company reported that road building at Yellow Giant is complete. Over the last three months the Company has constructed 6.8km of access road, including a 2.1km road from Tel Zone to the Bob Zone and a 4.7km road from Tel Zone to the Kim and Discovery Zones. The road building contractor, K&D Contracting Ltd, achieved good productivity during this period, averaging approximately 86m of advance per day. In addition, the Company has prepared mine portals at the Bob, Tel, and Discovery Zones, upgraded the barge landing at Supply Point, and built level areas for future buildings and infrastructure. The Company has achieved unprecedented access across areas of highly prospective geology on the mineral claim and established access to all four zones with known mineral resources. The company mobilized its newly purchased diamond drill to site in early April. The company's employees commenced exploration diamond drilling on April 13. After a four day period for commissioning of equipment and crew orientation, the exploration diamond drill crew has ramped up and is achieving an average of 95m drilled per day. Since April 13(th) the Company has completed 10 drill holes totaling 1,955m of diamond drilling in the Tel Area (RustyRoch Zone) and Bob Zone. Exploration diamond drilling over the next month will focus on drilling Bob Zone at depth, testing geophysical targets at the Crossbreak Zone, and testing of geochemical anomalies at Long Lake. The refurbishment of the company's Dense Media Plant is ongoing and all components have been engineered and procured. The bins, feeders, and conveyors are currently being manufactured in Lindsey, Ontario. The plant is currently expected to be near completion by mid-June and will be shipped to the Yellow Giant site in July 2013.

Banks Island Gold Ltd. reported an update of its recent developments, activities, and exploration plans for the Yellow Giant Gold Property, located on Banks Island, British Columbia. As announced on November 9, 2012, the company provided formal notification to Selkirk Metals Corp., of the company's intention to put the Yellow Giant Gold Property ("Yellow Giant" or the "Property") into commercial production. The company has now received formal notification that Selkirk will not exercise its Back-in Right to acquire a 51% interest in Yellow Giant. The company now has until August 4th, 2014 to secure financing and commence construction of the production facilities, at which point the Back-in Right will be permanently extinguished. Selkirk continues to be a major shareholder in the Company and currently owns approximately 5% of the issued and outstanding common shares of the company and retains a 2% NSR royalty on Yellow Giant. The company announced that it has commenced mobilization and preparation for an aggressive exploration program at Yellow Giant. The Company plans to conduct a 35,000m drill program with the goal of significantly expanding the current mineral resource by testing high priority targets across the Property. The company has mobilized a 35 man floating accommodation camp to service the Property. The Company is leasing a floating accommodation barge rather than purchasing the barges. The company has also mobilized a road building contractor to site. The contractor will be tasked with the building of exploration roads from the Tel Zone to the Bob, Kim, and Discovery Zones. In order to achieve maximum cost efficiencies, the Company is purchasing its own diamond core drill and use company employed diamond drillers. Exploration diamond drilling will be done on a full time basis commencing in March. Ongoing road building will provide accessibility over the Yellow Giant Property and allow expanded and cost-effective exploration activities. The company's exploration program, including camp services, road building, and exploration diamond drilling, is fully funded by existing working capital. The company is involved in discussions with multiple parties in order to secure further project financing for the Yellow Giant Gold Project. The company submitted applications for a British Columbia Mines Act Permit and an Environmental Management Act Permit for a 200tpd underground mine at the Tel Zone on January 23, 2013. The company has commenced the refurbishment of its Dense Media Plant, currently located in Lindsay, Ontario. Refurbishment work includes conveyors, chutes, bins, controllers, piping, and electrical. The company has been working closely with its metallurgist, engineers, and project manager to refine the process flowsheet, mechanical equipment, and process plant design. The company plans to source and utilize high-quality used or refurbished equipment for the primary machinery of the process plant. Major equipment for the plant has been selected and will be purchased once the company secures project financing. The company has not completed a feasibility study which establishes mineral reserves with demonstrated economic and technical viability. The Company cautions readers that any potential production may not be economically feasible and historically projects taken to production without establishing reserves through a feasibility study have a much higher risk of economic or technical failure.

Banks Island Gold Ltd. the discovery of extensive gold, silver, molybdenum, and copper mineralization located approximately 3km south of the Red Mountain mineralized zones. Company geologists discovered this new mineralization in a recently uncovered glacial valley located between MacAdam Point and Lost Mountain. The Red Mountain Gold Property is located 15km east of Stewart, British Columbia. In 1965, previous operators discovered gold/molybdenum mineralization in an area named MacAdam Point where a small area of a Quartz-Monzonite intrusive stock protruded at the northern edge of Bromley Glacier. A sample taken on the contact zone assayed 8.6gpt gold and 0.23% molybdenum over 8.5m. During the company's exploration activities in September 2012, company geologists observed that the eastern arm of the Bromley Glacier at Lost Mountain had receded to the edge of the Cambria Icefield, exposing the entire valley. A follow-up exploration program was conducted in early October of 2012 to prospect the area. Two recent field trips were focused on mapping and sampling the MacAdam Intrusive. Preliminary surveying indicate a surface exposure with dimensions of approximately 1000m x 600m. Chip samples were collected while mapping the contact, as the outer 10m of the Quartz Monzonite and the surrounding Hornfels aureola show a marked increase in vein intensity. Veins consist of coarse quartz containing variable amounts of pyrite, sphalerite, chalcopyrite and molybdenite. Veins up to 0.5m in thickness were encountered and locally veins are spaced in 0.2m intervals. Company geologists were able to access the contact zone between the MacAdam Intrusive and the Hornfels at the eastern side of the newly uncovered glacial valley. A mineralized shear zone along the contact was prospected over a strike length of 120m. One sample across the shear zone assayed 6.2gpt Au, 22gpt Ag and 0.40% Mo over 5.0m. A second sample assayed 0.1gpt Au, 12gpt Ag, 0.45% Mo and 0.1% Cu over 3.0m. This newly discovered mineral showing, named 'Lost Valley', is located approximately 880m along the contact from the historic MacAdam Point showing. The contact zone was not accessible between the Lost Valley and MacAdam Point showings due to steep and unstable terrain. However, numerous boulders with well mineralized quartz veins were observed in a recent rockfall of substantial size between the showings. Highlights from the sampling in this area include a sample which assayed 71gpt Au, 197gpt Ag, and 1.1% Cu and a sample which assayed 35gpt Au, 102gpt Ag, and 0.2% Cu.