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

August 24, 2011 08:00 ET

Eskay Mining Announces Closing First Tranche of Its Units Offering and Provides Property Update

TORONTO, ONTARIO--(Marketwire - Aug. 24, 2011) - ESKAY MINING CORP. (TSX VENTURE:ESK)(FRANKFURT:878 985)(BERLIN:878 985) ("Eskay" or the "Corporation") wishes to announce t hat further to its press release of July 26, 2011, the Corporation has completed the sale of 2,881,818 units (the "Units") priced at $0.11 per Unit for gross proceeds of $316,999.98. Each Unit consists of one (1) common share (the "Common Share") and one-half (½) 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. A cash fee of $21,840 and 198,545 broker warrants to acquire Common Shares at a price of $0.20 per share for a period of twelve (12) months from closing were issued in relation to this closing. All of the securities referred to herein are legended and restricted from trading until at least December 24, 2011.

The Corporation continues to offer 2,118,182 Units on the same terms as in the Corporation's July 26, 2011 press release.

The current issued and outstanding capital is 89,731,929 after the above mentioned issuance of shares.

Eskay has completed a 26 line-kilometre ground geophysics program on its 100% owned Corey and 70% owned SIB projects located in the Stewart Mining District, British Columbia. The projects, which are situated to the south of Barrick Gold's Eskay Creek Mine, are considered prospective for VHMS, porphyry and epithermal gold mineralization. Five high-priority prospects were surveyed in July and August of 2011 using S. J. Geophysics' IP/resistivity distributed acquisition system.

S. J Geophysics' system is well suited to exploring in rugged terrain such as that in the Eskay area. The purpose of these surveys was to explore for mineralized systems at greater depth than previously tested by drilling and shallow ground geophysics. Both surface arrays and available drill hole current electrode arrays were utilized in these surveys. Three dimensional resistivity and IP inversion modeling is currently under way and results are pending.

A total of 12 line kilometres targeted mineralization at the Hexagon/Hexagon East and Lulu targets on the SIB property (optioned from St Andrews Goldfields). Five borehole electrodes were also utilized at Lulu in an attempt to explore for deeper-seated sulfide mineralization.

At Corey, the survey targeted the Red lightning GFJ and C-10 targets, however glaciers and mud/rock slides limited the extent of these grids.

The 3-D inversion results are expected to be available in September of 2011. The Corporation has filed sufficient work on the SIB and Corey properties to keep them in good standing for ten (10) years.

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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