Banks Island Gold Ltd. Reports Significant Progress at Yellow Giant

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug 29, 2013) - Banks Island Gold Ltd. (TSX VENTURE:BOZ) -

• Dense Media Separation Plant erected onsite. Electrical installation in progress.
• Underground mining crews hired and mining supplies procured.
• Purchase of underground Jumbo drill and acquisition of heavy equipment.

Banks Island Gold Ltd. (the "Company") is pleased to report an update of its construction and project development activities at the Yellow Giant Gold Property, located on Banks Island, British Columbia.

The Company reports that the Dense Media separation plant has been transported to Banks Island and has been erected on site. The plant is being prepared for commissioning in September. Electrical cabling and the erection of two conveyors remain to be completed for the plant to be operational. The Company has purchased and mobilized ancillary equipment and supplies which include a 300kW generator for the plant. A photo of the plant onsite is displayed in Figure 1.

To view the photo of the plant onsite (Figure 1) accompanying this press release, please visit the following link: http://media3.marketwire.com/docs/894996i.jpg

Preparations for commencement of underground mining at the Bob Zone are well advanced. An experienced crew of underground miners has been hired and all necessary mine supplies will be delivered over the next several weeks. The Company has recently purchased a refurbished two boom Jumbo drill and leased a new underground loader and scissor lift.

The Company has established explosives magazines onsite and is working on construction of a mechanical shop and set-up of the mine compressor and generator. The company has recently mobilized heavy equipment to site to expand its capabilities for surface works. Heavy equipment onsite includes a Cat 966 front-end loader, a 30t rock truck, and an excavator.

Mr. Mossman, President and CEO of the Company, stated: "This is an exciting time at site with a great deal of activity as we prepare to commence underground mining and commissioning of the DMS plant. We look forward to the first shipments of concentrate this fall with the realization of a major milestone for Banks Island Gold."

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 junior mining resource exploration company focused on exploring for and developing economically viable mineral resources. The Company's mineral properties are 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 include any 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 prospectus dated September 30, 2011 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.