Williams Creek Gold Limited

Williams Creek Gold Limited

August 28, 2012 08:15 ET

Williams Creek Announces Completion of Phase I Trenching on the Pine Property and an Update on Its Cariboo Exploration Programs

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 28, 2012) - Williams Creek Gold Limited (TSX VENTURE:WCX) ("Williams Creek", "WCX" or the "Company") is pleased to announce the completion of its Phase I trenching program on its 100% owned Pine Property in the Cariboo Region, British Columbia, Canada.

The Company trenched a total of 275 meters (902.2 feet) in the early part of August 2012. Trenches were shallow as bedrock was found to be within one to two meters from surface. A total of eight samples were taken and the results appear in the table below.

ppm ppm ppm
L363951 0.365 <0.2
L363952 0.064 <0.2
L363953 3.53 <0.2
L363954 0.024 <0.2
L363955* >10.0 24 <0.2
L363956 0.008 <0.2
L363957 0.091 <0.2
L363958 0.041 0.2

*Sample L363955 was taken from a 0.3m quartz vein.

While few mineralized faults or veins were recognized and sampled during the trenching, the three strongly anomalous samples occur in the same area where 2005 and 2011 soil grids indicated strongly anomalous soils. The combination of the historical soil grids and the 2012 trench results suggest the presence of a north- northeast trending zone of gold mineralization.

"We are pleased with these encouraging results," stated Company Chairman and CEO, Michael R. Sonnenreich, "and will be expanding the trenching program to follow up on these anomalies. The Phase II trenching program expansion is anticipated to begin within the next few weeks."

Williams Creek Gold has also embarked on a compilation of historic data, combined with current fieldwork, on its 100% owned Ahbau Creek Property, acquired from New Gold Inc. (News Release WCX12-03, March 7, 2012). The property contains a well-documented gold zone with a published non-National Instrument 43-101 compliant "drill indicated" potential of 45,355 tonnes grading 10.2 g/t gold (Newton 1988). The gold zone consists of gold bearing massive sulphide veins. Mineralized structures and felsic to intermediate intrusive dykes and sills, apparently related to the Naver Pluton, are secondary targets.

Mr. Sonnenreich noted, "The Company is very interested in determining the viability of developing a small mining program centered on the Ahbau Creek Gold Zone. This is precisely the type of project that Williams Creek Gold has targeted in an effort to diversify its holdings and increase shareholder value."

Williams Creek recently completed a soil geochemical program on its wholly owned Ahbau Lake property, and is awaiting assay results.

The Atis Creek - Chubby Bear property, acquired from New Gold Inc. (News Release WCX12-03, March 7, 2012), is currently the subject of ongoing geochemical soil sampling programs.

The technical information contained in this news release was prepared by Robert E. "Ned" Reid, P.Geo., a "Qualified Person" as defined under National Instrument 43-101.

About Williams Creek Gold Limited (WCX)

Visit http://www.WilliamsCreek.ca to learn more about Williams Creek Gold Limited.

Williams Creek Gold Limited is a Canadian company with the primary purpose of participating broadly in the natural resource sector, with an emphasis on the gold subsector, through exploration, joint ventures or other equity investments, royalty and finance agreements.

Williams Creek Gold Limited owns twenty-eight Crown Granted mineral claims known as the Barkerville Project in the immediate vicinity of Barkerville, BC in the Cariboo mining division. The Cariboo gold belt and the Barkerville Camp have a long history of gold production dating back to the 1800s. Historically the Barkerville Camp has reported gold production of 3.8 million ounces, including 2.6 million ounces from surface placer and 1.2 million ounces from lode mining. When placer gold production peaked in the late 1890s, Williams Creek Gold's Black Jack (District Lot 1B), Home Stake (District Lot 4B), Cornish (District Lot 1F) and Wintrip (District Lot 32F) Crown Granted mineral claims were among the first acquired in the early search for lode gold.

Williams Creek Gold Limited also owns a block of four mineral claims 17km west of Barkerville known as the Pine Properties. The Company has three Crown Granted mineral claims in the Kamloops Mining Division, two of which are adjacent to New Gold's New Afton project. Williams Creek Gold Limited also owns the Ahbau Creek, Chubby Bear and Ahbau Lake claim groups in Central British Columbia.

Williams Creek Gold is earning a 50% interest through a joint venture with Tyhee Gold Corp. in the Big Sky Property north of Yellowknife, NWT.

Additionally, Williams Creek Gold Limited has a net 30% interest in the ATW diamond property in the MacKenzie Mining District of the Northwest Territories. Williams Creek also holds the BOPS Project consisting of 32 unpatented lode mining claims in Pershing County, Nevada.

On behalf of the Board of Directors,

Michael R. Sonnenreich, Chairman and CEO

Williams Creek Gold Limited

This news release may contain forward-looking statements including management's assessments of future plans and operations, and expectations of future production. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to, the risks associated with the mining and exploration industry (e.g. operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production and the uncertainty of the availability of capital). The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.

The TSX Venture Exchange has not reviewed nor accepted responsibility for the adequacy or accuracy of this news release which has been prepared by management.

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