Banks Island Gold Ltd.

Banks Island Gold Ltd.

October 25, 2011 17:00 ET

Banks Island Gold Ltd. Completes Initial Public Offering

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 25, 2011) - Banks Island Gold Ltd. (the "Company") is pleased to announce that it successfully completed its initial public offering (the "Offering") of 4,000,000 common shares for gross proceeds of $1,000,000. The agent for the Offering was Mackie Research Capital Corporation (the "Agent"). After giving effect to the Offering, the Company now has 14,726,000 common shares issued and outstanding. The Company granted to the Agent non-transferable warrants to purchase up to an aggregate of 400,000 common shares of the Company at a price of $0.25 per common share. The Agent's warrants may be exercised on or before October 25, 2013. The Agent also received a cash commission equal to 10% of the gross proceeds of the Offering, as well as a corporate finance fee.

The Company anticipates that its common shares will begin trading on the TSX Venture Exchange on or about October 28, 2011 under the trading symbol "BOZ".

Pursuant to the terms of a mineral property exploration and option agreement dated March 1, 2011 between Selkirk Metals Corp. ("Selkirk") and the Company, as amended May 19, 2011, on October 28, 2011 the Company plans to issue 809,800 common shares to Selkirk, representing 5% of the issued and outstanding common shares of the Company on a fully diluted basis. The common shares will be subject to a hold period expiring at midnight on February 28, 2012.

The Company is a junior mining resource exploration company focused on acquiring mineral properties and exploring for and developing economically viable mineral resources. The Company's mineral property is located in British Columbia. For more information, please refer to the Company's prospectus dated September 30, 2011 available on SEDAR (www.sedar.com).

ON BEHALF OF THE BOARD OF DIRECTORS

Benjamin W. Mossman, President & Chief Executive Officer

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.

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.

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