Banks Island Gold Ltd. Provides Update on Commissioning of Grinding and Flotation Circuits

- Current mill throughput at 200tpd.

- Gold Recovery currently estimated at +92%.

- Falcon Gravity Concentrator commissioned.

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sep 18, 2014) - Banks Island Gold Ltd. (TSX VENTURE:BOZ) (the "Company") is pleased to report that the commissioning of grinding and flotation circuits is in progress and production of gold concentrate has recommenced at the Yellow Giant Gold Property ("Yellow Giant"), located on Banks Island, British Columbia.

The Company has recently installed and commissioned additional tailings filter press capacity and optimized the grinding circuit and mill cyclone. Since these improvements have been completed, mill throughput has averaged 200 tonnes per day.

The Falcon Gravity Concentrator in the milling circuit was recently commissioned. This equipment captures gravity recoverable gold in the milling circuit and produces a separate high grade concentrate. Preliminary results from this circuit indicate production of ~1/2tonne of concentrate per day grading ~900gpt gold and ~750gpt Silver. The Company intends to operate this system in order to reduce the amount of gold "lock-up" in mill liners and provide a higher percentage of payable gold from this segment of gold production.

Since commencement of processing on August 6^th to September 16^th, the Company has produced 635 dry metric tonnes of concentrate with an average grade of approx. 72gpt gold and 184gpt silver. The Company estimates that average metallurgical gold recovery to date at 92%.

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

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.