Pure Gold Announces Final Closing of Sale of Non-Core Assets to Premier Gold and Early Exercise of Warrants

VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 20, 2016) - Pure Gold Mining Inc. (TSX VENTURE:PGM) ("Pure Gold" or the "Company") is pleased to announce that it has closed the sale of surface rights on certain non-core patented mining claims (the "Buffalo Claims"), first announced on December 2, 2015, to Premier Gold Mines Limited ("Premier Gold"), in exchange for $0.5 million in cash. These proceeds are in addition to the $2.0 million in cash and approximately $3.4 million in net proceeds received from the sale of Premier Gold shares, received by the Company for the sale of the underlying mineral rights on the Buffalo claims.

Pure Gold is also pleased to announce it has received $1,020,750 from the exercise of 2,041,500 warrants, with an expiry date of September 4, 2016.

ABOUT PURE GOLD

Our mandate is pure and simple. To dream big. To colour outside the lines. To use smart science and creativity to unlock the next major discovery at the Madsen Gold Project in Red Lake, Ontario. And become Canada's next iconic gold company.

Additional information about the Company and its activities may be found on the Company's website at www.puregoldmining.ca and under the Company's profile at www.sedar.com.

ON BEHALF OF THE BOARD

Darin Labrenz, President & CEO

Certain statements made and information contained in this news release and elsewhere constitutes "forward-looking information" within the meaning of Canadian securities legislation. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may constitute forward-looking statements. Such forward-looking statements are based on certain assumptions and are subject to risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements. Many of these uncertainties and contingencies can affect the Company's actual performance and could cause actual performance to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, the Company. Readers are cautioned that forward-looking statements are not guarantees of future performance. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those acknowledged in such statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except to the extent required by applicable laws. Accordingly, readers are advised not to place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statement that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws.