Banks Island Gold Ltd.
TSX VENTURE : BOZ

Banks Island Gold Ltd.

February 10, 2012 08:30 ET

Banks Island Gold Ltd. Exploration and Corporate Update

- Assay Results Pending on Nine Drill Holes

- Drilling to Commence in March Targeting Three Strong Geophysical Anomalies

- LOI Signed on New North American Gold Property

- Skanderbeg Capital Partners Retained as Corporate Development Consultant

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 10, 2012) - Banks Island Gold Ltd. (TSX VENTURE:BOZ) (the "Company") is pleased to provide an update on exploration activities on the Banks Island Gold Project and corporate activities.

EXPLORATION UPDATE

The Company recently completed 1,923m of diamond drilling in nine diamond drill holes at the Tel Zone. Diamond drilling primarily targeted the Tel zone below the current resource. Several mineralized intercepts were encountered and have been submitted for assay. The Company has begun preparations to drill test three of the strongest conductive anomalies determined from the VTEM plus time-domain airborne geophysical survey flown by Geotech Ltd. in September 2011. Diamond drilling is expected to commence in early March 2012.

LETTER OF INTENT ON NORTH AMERICAN GOLD PROPERTY

The Company announces that it has entered into a nonbinding Letter of Intent (LOI) which allows Banks Island Gold an exclusive right to perform a due diligence on a North American gold property. The LOI requires that the due diligence be conducted in a confidential manner until a decision to proceed with the acquisition has been made by the Company. The Company has paid a non-refundable deposit of $100,000 to secure exclusive rights for a 120 day period to conduct due diligence and to negotiate an option agreement on the property. The Company has no obligation to enter into any agreement and there is no guarantee or assurance that any agreement will result from the Company's due diligence. If the Company does enter into any agreement in the future, it will then issue a news release.

SKANDERBEG CAPITAL PARTNERS

The Company announces that it has retained the services of Skanderbeg Capital Partners Inc. ("Skanderbeg") as a corporate development consultant. Skanderbeg is a merchant banking group, focused on identifying, structuring and operating companies with highly prospective business opportunities around the world. Skanderbeg maintains offices in both North America and Europe and is headquartered in Vancouver, British Columbia.

Skanderberg will be paid a monthly fee of $7,000 for an initial term of 12 months and will be granted 200,000 stock options of the Company, exercisable at 50 cents per share. The options will vest at a rate of 25% per quarter from date of grant and are exercisable for a period of 5 years. The Agreement and the grant of options pursuant to the Agreement are subject to regulatory approval.

RENMARK FINANCIAL

The Company announces that it has retained the services of Renmark Financial Communications Inc. ("Renmark") to handle its investor activities and reinforce Banks Island Gold's profile in the financial community and enhance the visibility of its project portfolio.

Renmark Financial Communications Inc. is a Montreal and Toronto based full service investor relations firm representing small, medium and large cap public companies trading on all major North American exchanges.

In consideration of the services to be provided, the Company has agreed on a monthly agreement starting March 1, 2012 paying a monthly retainer of $7,000 to Renmark. Renmark does not have any interest, directly or indirectly, in the Company or its securities, or any right or intent to acquire such an interest.

The Company is a junior mining resource exploration company focused on exploring for and developing economically viable mineral resources. The Company's mineral property is located on Banks Island 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

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 and 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.

Contact Information

  • Banks Island Gold Ltd.
    Benjamin W. Mossman, P.Eng.
    President, Director, & Chief Executive Officer
    604-245-0066
    www.banksislandgold.com