Eskay Mining Corp.
FRANKFURT : 878 985
BERLIN : 878 985

July 26, 2011 16:31 ET

Eskay Announces Proposed Units Offering of Up to $550,000 and Provides Update

TORONTO, ONTARIO--(Marketwire - July 26, 2011) - ESKAY MINING CORP. (TSX VENTURE:ESK)(FRANKFURT:878 985)(BERLIN:878 985) ("Eskay" or the "Corporation") wishes to announce that it is offering up to 5,000,000 units (the "Units") priced at $0.11 per Unit for gross proceeds of up to $550,000 (the "Offering"). Each Unit consists of one (1) common share (the "Common Share") and one-half (1/2) of a share purchase warrant (a "Warrant"). Each full Warrant entitles the holder to acquire a further Common Share of the Corporation at a price of $0.20 per Common Share until the earlier of: (i) the date which is twelve (12) months following the closing; and (ii) in the event that the closing price of the Common Shares on the TSX Venture Exchange is at least $0.30 for ten (10) consecutive trading days, and the 10th trading day (the "Final Trading Day") is at least four (4) months from the closing date, the date which is thirty (30) days from the Final Trading Day.

The Corporation may pay a finder's fees and/or commissions up to 8% in cash and issue brokers warrant equal to 8% of the number of Units sold. Each broker warrant entitles the holder to acquire a Common Share at the price of $0.20 for a period of twelve (12) months from closing.

The funds will be used for exploration on the Corporation's properties and for working capital.

This transaction is subject to the approval of the TSX Venture Exchange.

A ground geophysical program has commenced on the Eskay property in Northern British Columbia. SJ Geophysics will be carrying out a series of IP/resistivity surveys utilizing their state of the art distributed acquisition system. The surveys include a combination surface and borehole electrode survey at the Lulu property and surface surveys at Hexagon, C-10 and Red Lightning project areas. The surveys are expected to be completed by the middle of August. Diagnos Inc. has completed the first phase of a Computer Aided Resources Detection System (CARDS) evaluation over the Eskay properties. The purpose of the study is to identify favourable exploration targets based on the analysis of all available geophysical, drill hole and surface data using artificial intelligence and data mining techniques. The next phase will consist of field checking a number of the identified targets and is expected to begin later this year.

Mira Geoscience Ltd. is continuing a compilation and targeting project utilizing all available geophysical, geochemical, drill hole and surface geological data sets available to Eskay at this time. The newly completed Diagnos Inc. CARDS evaluation will be include in their targeting model.

Cautionary Note Regarding Forward-Looking Statements:

This Press Release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. When used in this document, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions are intended to identify forward-looking statements. Such statements reflect our current views with respect to future events and are subject to such risks and uncertainties. Many factors could cause our actual results to differ materially from the statements made, including those factors discussed in filings made by us with the Canadian securities regulatory authorities. Should one or more of these risks and uncertainties, such actual results of current exploration programs, the general risks associated with the mining industry, the price of gold and other metals, currency and interest rate fluctuations, increased competition and general economic and market factors, occur or should assumptions underlying the forward looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, or expected. We do not intend and do not assume any obligation to update these forward-looking statements, except as required by law. Shareholders are cautioned not to put undue reliance on such forward-looking statements.

Neither TSX Venture Exchange nor its Regulation Services 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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