Barkerville Gold Mines Ltd.: Goldstream Mill Purchase Completed

Barkerville Gold Mines Ltd. (TSX VENTURE:BGM)(FRANKFURT:IWUB) (the "Company")
announces that it has closed the purchase of the Goldstream Mill facility,
tailings pond and related mineral leases through the acquisition (the
"Acquisition") of Bethlehem Resources (1996) Corporation ("BRC") under the terms
previously disclosed on September 23, 2010 (News Release 10-25) by making its
final payment of $550,000 and 543,000 common shares at a deemed value of $0.92
per share.


It is the Company's intention, subject to approvals, to relocate, refurbish and
upgrade the Goldstream mill facility to a location in the vicinity of the Gold
Quartz mine on Cow Mountain, near Wells, central B.C., where two of the
Company's NI 43-101 gold resources and proposed open-pit deposits are located.
Upon relocation and if supported by feasibility work, the Company plans to
upgrade the mill with an additional ball mill and a carbon-in-pulp circuit, to
an increased capacity of 3,000 tonnes per day. 


The Goldstream Mill is a custom mineral processing plant located in the
Revelstoke Mining Division, approximately 90 km north of Revelstoke, B.C. (via
Hwy 23). It is a permitted facility currently on care and maintenance, with
available accommodation in the adjacent tailings pond for possible future
operations.


The Acquisition was completed pursuant to a share purchase agreement
("Agreement") between the Company, BRC and International Bethlehem Mining
Corporation (TSX VENTURE:IBC) ("IBC") dated September 2, 2010 whereby the
Company purchased all the issued and outstanding shares of BRC from IBC.
Pursuant to the Agreement, the Company paid IBC an aggregate purchase price of
$3,300,000. The purchase price was satisfied by the Company paying IBC a $50,000
deposit, a $200,000 due diligence fee, $250,000 on each of the 6 month and 12
month anniversaries of the Closing Date and $550,000 on the 18 month anniversary
of the Closing Date. The Company also paid $2,000,000 by the issuance of
$500,000 worth of shares on the 6 month anniversary, the 12 month anniversary
and the 18 month anniversary of the Closing Date. The number of shares issued to
IBC was calculated based on the volume weighted-average price of the Company's
shares, subject to a floor price of $0.92 per share totaling 1,614,941 shares.


The Company's permitted Bonanza Ledge open-pit mine on the adjacent Barkerville
Mountain is in the preliminary mine startup stages as the Company seeks
necessary government approvals to handle Bonanza Ledge ore at the offsite QR
mill facility. 


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 dore gold in September 2010 and continued until December
2011. 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.
On December 5, 2011 the Company received, under the British Columbia Mines Act,
their Mine Permit approving the Mine Plan and Reclamation Program for Bonanza
Ledge. The Company is awaiting permits to mill ore from Bonanza Ledge at the QR
Mine facility. 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.


On behalf of the Board of Directors

J. Frank Callaghan, President and CEO 

This News Release contains forward-looking statements. Forward-looking
statements are statements which relate to future events and conditions and
therefore involve inherent risks and uncertainties. These statements are only
predictions and involve known and unknown risks, uncertainties and other factors
that may cause our or our industry's actual results, levels of activity,
performance or achievements to be materially different from any future results,
levels of activity, performance or achievements expressed or implied by these
forward-looking statements. While these forward-looking statements, and any
assumptions upon which they are based, are made in good faith and reflect our
current judgment regarding the direction of our industry, actual results will
almost always vary, sometimes materially, from any estimates, predictions,
projections, assumptions or other future performance suggested herein. Except as
required by applicable law, the Company does not intend to update any of the
forward looking statements to conform these statements to actual results. All
phases of the Company's operations are subject to environmental regulation and
governmental approval and permits and there can be no assurance that the Company
will obtain all the requisite permits for future development. Mining is an
inherently risky business with large capital expenditures and cyclical metals
markets.