Banks Island Gold Ltd. Reports Update on Underground Mining at Yellow Giant

Banks Island Gold Ltd. (TSX VENTURE:BOZ) - 



--  Mine development for initial production mining at Tel Zone near
    completion. 
--  11,000 tonnes of mineralized material currently in surface stockpile. 
--  Production mining of 25,000 tonnes at Tel Zone to commence on July 30th.
--  6 months of mill feed available (36,000t) at start of flotation
    concentrate production in early August.



Banks Island Gold Ltd. (the "Company") is pleased to report an update on
progress at the Yellow Giant Gold Property ("Yellow Giant"), located on Banks
Island, British Columbia.


At present the Company has 11,000 tonnes of broken mill feed stockpiled and will
have a 25,000 tonne stope ready for production mining at the Tel Zone by July
30th 2014. At a production rate of 200 tonnes per day, the Company has
approximately 6 months of mineralized material available for processing once the
grinding and flotation circuits are commissioned and ready for production in
early August.


The Company plans to continue mine development at the Tel Zone and other zones
at Yellow Giant in order to maintain a healthy inventory of material available
for processing.


Bob Zone

The Company estimates that approx. 2,000 tonnes of mineralized material remains
in broken inventory at the Bob Zone which will be processed once the grinding
and flotation sections are commissioned. The arithmetic average of assays of
mill feed from the Bob Zone to date is 21.0gpt Au and 51gpt Ag.


The Company plans to backfill the upper Bob Zone stope with cemented tailings,
complete a service/ventilation raise from the lower workings to surface, and
then continue underground development to access planned mining stopes below the
B30 level.


Tel Zone

As of July 15th 2014, underground mine development crews had completed 445m of
tunneling at the Tel Zone, including 375m of waste development and 70m of ore
development. 


Waste development to the third level at the Tel Zone is estimate to be complete
on July 30th. Completion of the third level development will allow mining of a
25,000 tonne block of the mineral resource. This production area, the Upper Tel
Zone, represents approximately 57% of the total mineral resource at the Tel
Zone. 


Mining of mineralization at the Tel Zone will commence in August 2014 and
coincide with the start of production of flotation concentrates. Mine
development of the main ramp will continue concurrently with production mining
in order to access planned mining stopes below the third level.


The current Mineral Resource for the Tel Zone is displayed in Table 1 and is
effective as of February 1st 2013. The mineral resource is stated at a 6gpt Au
cut-off grade.




                                                                         
              Table 1 - Current Mineral Resource - Tel Zone              
                                                                         
-------------------------------------------------------------------------
Zone          Measured              Indicated             Inferred       
                    Au     Ag             Au     Ag             Au     Ag
         Tonnes  Grade  Grade  Tonnes  Grade  Grade  Tonnes  Grade  Grade
                 (gpt)  (gpt)          (gpt)  (gpt)          (gpt)  (gpt)
Tel      15,000   21.1     43  21,000   18.5     41   8,000   20.6     40
-------------------------------------------------------------------------
                                                                            
Total Measured &           36,000 tonnes @ = 22,700oz Gold,  48,000oz Silver
 Indicated:          19.6gpt Au & 42gpt Ag                                  
Total Inferred:     8,000 tonnes @ 20.6gpt  = 5,300oz Gold,  10,000oz Silver
                             Au & 40gpt Ag                                  



The NI43-101 Technical Report on the Yellow Giant Gold Property dated February
1st 2013 was prepared by independent consultant, Mr. Robert Baldwin, P.Eng, has
been posted on SEDAR and will be available on the Company's website.


Stockpile

As reported by news release on July 10th 2014, the Company estimates there are
currently 6,000 tonnes of DMS fines stockpiled onsite which are composed of
material rejected by the Spiral Concentrator.


The Company has sampled material from its DMS fines stockpiles. The average of
14 samples ranged from 7.8gpt Au to 62.9gpt Au with an arithmetic average of
19.9gpt Au and 51gpt Ag.


The Company also has a stockpile of mineralized material mined recently from the
Tel Zone with an estimated quantity of 3,000 tonnes. Assays from mined material
at Tel are pending.


To view Figure 1, click on the following link:
http://media3.marketwire.com/docs/BOZ717.jpg


Mr. Benjamin Mossman, P.Eng, CEO of Banks Island Gold, is the qualified person
who reviewed and approved the contents of this news release. 


Analytical work on concentrates was carried out by ALS Mineral Services in North
Vancouver, British Columbia. Quality assurance and quality control programs
include the use of analytical blanks, standards, and duplicates in addition to
the lab's own internal quality assurance program. Samples are fire assayed with
a gravimetric finish to determine gold and silver values.


The Company is a mining company focused on gold production, exploration, and
development of economically viable mineral resources. The Company's mineral
property is located in British Columbia. For more information, please refer to
the Company's website at www.banksislandgold.com


ON BEHALF OF THE BOARD OF DIRECTORS

Benjamin W. Mossman, P.Eng, President, Director, & Chief Executive Officer

The TSX Venture Exchange has not reviewed and does not accept responsibility for
the accuracy or adequacy of this release. Neither the TSX Venture Exchange nor
its Regulation Service Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of
this release.


This press release contains forward-looking statements. All statements, other
than statements of historical fact, constitute "forward-looking statements" and
include any information that addresses activities, events or developments that
the Company believes, expects or anticipates will or may occur in the future
including the Company's strategy, plans or future financial or operating
performance and other statements that express management's expectations or
estimates of future performance.


Forward-looking statements are generally identifiable by the use of the words
"may", "will", "should", "continue", "expect", "anticipate", "estimate",
"believe", "intend", "plan" or "project" or the negative of these words or other
variations on these words or comparable terminology. These statements, however,
are subject to known and unknown risks, uncertainties and other factors that may
cause the actual results, level of activity, performance or achievements of the
Company to be materially different from those expressed, implied by or projected
in the forward-looking information or statements. Important factors that could
cause actual results to differ from these forward-looking statements include but
are not limited to: risks related to the exploration and potential development
of the Company's project, the actual results of current exploration activities,
conclusions of economic evaluations, changes in project parameters as plans
continue to be refined, future prices of gold, as well as those factors
discussed in the sections relating to risk factors of the Company Annual
Information Form dated February 22, 2013 filed on SEDAR.


There can be no assurance that any forward-looking statements will prove to be
accurate, as actual results and future events could differ materially from those
anticipated in such statements. Accordingly, the reader should not place any
undue reliance on forward-looking information or statements. Except as required
by law, the Company does not intend to revise or update these forward-looking
statements after the date of this document or to revise them to reflect the
occurrence of future unanticipated events.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Banks Island Gold Ltd.
Benjamin W. Mossman
604-245-0066