Banks Island Gold Ltd.
TSX VENTURE : BOZ

Banks Island Gold Ltd.

November 02, 2011 09:30 ET

Banks Island Gold Ltd. Reports Strong VTEM Conductors Identified on Banks Island

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 2, 2011) - Banks Island Gold Ltd. (the "Company") (TSX VENTURE:BOZ) is pleased to announce that it has received the final report from Geotech Ltd. on the VTEM plus time-domain airborne geophysical survey flown in September 2011.

The Company views the VTEM plus survey to be highly successful. Conductive anomalies appear to correlate to several of the known mineralized zones on Banks Island. Importantly, new targets with strong conductive anomalies in unexplored areas have been identified by the survey.

The strongest conductor, with a strike length of approximately 700m, is in an unexplored area under Witness Lake and marsh. A strong anomaly is present north of Sproatt Lake along strike and to the east of the Crossbreak showing. Several conductors were identified in the Arseno Lake area where known mineralization occurs, including the Discovery and Kim Zones, and where a large geochemical soil anomaly was outlined by previous operators.

Several strong anomalies ranging from 300m to 700m in strike length were identified on the Waller Peninsula over a 2km2 area. There are no records of exploration on the Waller Peninsula by previous operators or in the public domain. In addition to steeply dipping "structural" conductors similar to the known mineralized zones on Banks Island, flat or slightly dipping conductors ranging from "thin" to "thick" were identified.

The Company is encouraged that conductive anomalies appear to coincide in location and orientation over the Tel and the Discovery Zones. Several conductive anomalies correlate with other known mineralized showings on Banks Island. A 300m long northwest trending anomaly under Hepler Lake at the Island prospect is present and a 500m long northwest trending anomaly is present on the southwest shore of Crazy Lakes.

Principal geophysical sensors used in the survey included a versatile time domain electromagnetic (VTEMplus) system and horizontal magnetic gradiometer. A total of 978 line-kilometers of geophysical data were acquired during the survey. Data analysis was performed by Geotech Ltd.

The Company is currently evaluating and prioritizing the geophysical targets outlined by Geotech Ltd. A program of geological mapping followed by drill testing is contemplated. Geophysical maps, reports, and summaries will be available on www.banksislandgold.com.

Dr. Dirk Meckert, PhD, P.Geo 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 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

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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