Barkerville Gold Mines Ltd.
TSX VENTURE : BGM
FRANKFURT : IWUB

Barkerville Gold Mines Ltd.

July 16, 2012 04:00 ET

Fully Permitted Barkerville Gold Announces Its QR Mine to Process Ore From Bonanza Ledge Open Pit

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 16, 2012) - Barkerville Gold Mines Ltd. (TSX VENTURE:BGM)(FRANKFURT:IWUB) (the "Company" or "Barkerville") announced today it received an amendment on Friday, July 13th to its Mines Act permit for the mill at QR Mine to process ore from its newly permitted Bonanza open pit Mine.

The QR Mill facility is located southeast of Quesnel, B.C. It is anticipated that the mill will provide 40 jobs over at least four years and will directly support mining jobs at the new Bonanza Ledge gold mine. Ore will be processed at the mill once the facility is up and running and various site improvements have been completed.

Bonanza Ledge received its Mines Act Permit on Dec. 5, 2011, and currently has a mine life of four years. The mine design is the culmination of geological exploration, engineering and environmental studies undertaken by the company in the Barkerville camp since the deposit was discovered in 2000. Bonanza Ledge Mine start-up is expected to commence during the third quarter, 2012.

The Quesnel region has been hard hit by losses in forestry due to the mountain pine beetle epidemic and will benefit by the QR Mill continuing its operations. Mineral exploration and mining are important economic drivers for British Columbia. The production value of B.C.'s mining industry was approximately $8.6 billion in 2011.

Rich Coleman, Minister of Energy and Mines

"The QR Mill will provide another 40 jobs for the Bonanza Ledge mining project in Barkerville and will carry on the gold mining legacy in the Cariboo region. Mining across B.C. supports job creation, provides opportunities for business growth and helps improve the capacity of health, education and other public services through government revenues."

Frank Callaghan, President & CEO, Barkerville Gold Mines

"Bringing a mining property to production from its original discovery through to a permitted operation, is an achievement that involves a partnership with government, First Nations, local stakeholders and the investment community. Next month marks the 150 year anniversary of Billy Barker's original gold strike and we are proud to be able to sustain that legacy going forward while positively supporting the local economy."

About Barkerville Gold Mines Ltd.

Since the mid-1990s the Company has focused on exploration and development of gold projects in the Cariboo Mining District in central B.C. The Company's mineral tenures now cover over 117,691.14 hectares, encompassing seven past producing hard rock mines and three NI 43-101 gold deposits, including the QR Mine & Mill. The QR Property was acquired in February 2010 and includes a 900 tonne/day gold milling facility and a permitted gold mine located approximately 110 kilometers by highway and all-weather road from the Barkerville Gold Camp. Mining operations commenced at QR in the first quarter of fiscal 2011 and the Company began pouring doré gold in September 2010 and continued until December 2011. In November 2010 the Company acquired a second permitted mill currently on care and maintenance in Revelstoke, B.C. for relocation to the Barkerville Gold Camp near Wells, B.C. and upgrade to a +3,000-tonne/day facility subject to all necessary government approvals. In November 2010 the Company and the Lhtako Dene First Nation also signed a Project Agreement in relation to its Bonanza Ledge and Cariboo Gold Projects. The Company has completed significant drilling and exploration programs and together with the historical data is compiling all information to determine geologic models and updated technical reports to continue with exploration and development of the Cariboo Gold projects.

The technical information in this news release has been reviewed and approved by the Company's Chief Geologist Jim Yin, PhD, P.Geo, a qualified person as defined in National Instrument 43-101.

This news release has been prepared on behalf of the Board of Directors which takes full responsibility for its contents.

J. Frank Callaghan, President and CEO

Certain information in this news release is forward-looking within the meaning of certain securities laws, and is subject to important risks, uncertainties and assumptions. This forward-looking information includes, among other things, information with respect to the Company's beliefs, plans, expectations, anticipations, estimates and intentions, including the listing and trading of the Company's common shares on the TSX Venture Exchange. The words "may", "could", "should", "would", "suspect", "outlook", "believe", "anticipate", "estimate", "expect", "intend", "plan", "target" and similar words and expressions are used to identify forward-looking information. The forward-looking information in this news release describes the Company's expectations as of the date of this news release.

The results or events anticipated or predicted in such forward-looking information may differ materially from actual results or events. Material factors which could cause actual results or events to differ materially from such forward-looking information include, among others, the Company's ability to engage and retain qualified key personnel, employees and affiliates, to obtain capital and credit and to protect its property rights.

The Company cautions that the foregoing list of material factors is not exhaustive. When relying on the Company's forward-looking information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Company has assumed a certain progression, which may not be realized. It has also assumed that the material factors referred to in the previous paragraph will not cause such forward-looking information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.

THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME.

Neither the 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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