Williams Creek Gold Limited

Williams Creek Gold Limited

May 31, 2012 16:30 ET

Williams Creek Announces TSX Approval of Big Sky Joint Venture and Start of Exploration Program at Yellowknife, NWT

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 31, 2012) - Williams Creek Gold Limited (TSX VENTURE:WCX) ("Williams Creek," "WCX," or the "Company") is pleased to announce the May 25 2012 TSX approval of its Big Sky Joint Venture with Tyhee Gold Corp. to earn a 50% interest in the Big Sky Property (see News Release WCX12-04, March 30 2012). Big Sky is located 17km north of Yellowknife, Northwest Territories, and consists of three mining leases covering 597 hectares and 17 claims totaling 2,406 hectares.

Williams Creek will start the program with a remote sensing satellite data analysis compiled by Auracle Geospatial Science Inc. to provide georeferencing and digital surface terrain modeling, a structural model, and mineral, alteration and lithologic spectra models and mapping. Ground geology is expected to commence in June, focusing on the known shear zones at Oro Lake that transect the northern portion of the Kam Group Volcanics. The adjacent Con and Giant mines extracted more than 13 million ounces of gold from chlorite carbonate schists (shear zones) that transect Archean and Kam Group volcanic rocks.

"We believe the Big Sky Property has great potential," stated Williams Creek Chairman and CEO Michael R. Sonnenreich, "and we are very pleased to be working closely with Tyhee Gold on the project and to be able to benefit from their past experience on the property."

The 2012 Phase I Big Sky program will consist of the remote sensing satellite survey, prospecting, geological mapping and sampling to further define the extent of the known Oro Lake shear zones and define drill-ready targets for the Phase II program.

Tyhee Gold Corp. Interim President Brian Briggs said the "Joint Venture with Williams Creek comes at an opportune time for us as it will advance the exploration of the Big Sky Property while Tyhee is focused on finalizing a feasibility study based on the Ormsby, Clan and Nicolas Lake deposits."

Williams Creek is pleased to have engaged Michael B. Regular, B.Sc., P.Geo., to run the Phase I exploration project. Mr. Regular has worked for Tyhee Gold Corp. since 2006 on exploration and drilling programs in the Yellowknife region, including the Oro Lake Shear Zone, and has excellent familiarity with the geology of the region. Mr. Regular will be working closely with Tyhee's Chief Geologist Val Pratico to ensure Williams Creek benefits from Tyhee's previous experience on the Big Sky project. Mr. Regular is a graduate of Memorial University of Newfoundland, St. John's and is a qualified person as defined by National Instrument 43-101.

About Williams Creek Gold Limited (WCX)

Visit 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 28 Crown Granted mineral claims 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. 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 Gold is earning a 50% interest in the Big Sky Property north of Yellowknife, NWT. Its joint venture partner is Tyhee Gold Corp.

On Behalf of the Board of Directors

Michael R. Sonnenreich, Chairman and CEO

Williams Creek Gold Limited

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. 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.

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