Pistol Bay to Start Drilling at Confederation Lake in March 2018

Vancouver, B.C. – February 22, 2018: Pistol Bay Mining Inc. (TSX-V – PST; Frankfurt – OQS2) (“Pistol Bay” or the “Company’) is pleased to announce that it is currently soliciting and reviewing bids from drilling contractors for the rights to drill the Company’s Confederation Lake greenstone belt VMS properties. A decision is expected shortly, and drilling is planned to commence March 2018.

Pistol Bay has received the one million dollars ($1,000,000) from Rio Tinto for the uranium assets it owned in the Athabasca Basin (see news release February13,2018). Proceeds from this payment will be used to fund the drilling program at Confederation Lake.

Three drill holes of at least 500 metres each are planned to further test the Arrow Zone and to retrieve core for preliminary metallurgical testing. The Arrow Zone was the subject of a 43-101 report in 2017 that presented an inferred mineral resource of 2,100,000 tonnes grading 5.78% zinc, 0.72% copper, 0.60 grams per tonne (g/t) gold and 19.5 g/t silver. (8.42% zinc eq.) (see news release February 15, 2018).

Approximately ten diamond drill holes totaling approximately 2,000 metres will test the Fredart “A” Zone (also referred to as the Copperlode “A” Zone). A historical resource estimate made in 1971 for the Fredart “A” Zone, based on diamond drilling in the 1960s, was 386,000 tonnes grading 1.56% copper and 33.6 g/t silver, or alternatively 219,500 tonnes at 1.95% copper and 41.8 g/t silver. Neither of these estimates conforms to any class of mineral resource or mineral reserve defined by the 2014 CIM guidelines.

#PistolBayMining $PST Plans 2018 #Drilling #Program in Confederation Lake

Pistol Bay (TSX.V-PST) announced that it plans to commence a 2018 drilling program on it’s Confederation Lake greenstone belt in the very near future.

Charles Desjardins, President and CEO of Pistol Bay, commented, “After the company’s very encouraging VTEM plus survey in 2017, we are excited to commence the next stage of development of Confederation Lake volcanic massive sulphide belt.”

Three drill holes of at least 500 metres each are planned to further test the Arrow Zone, and to retrieve core for preliminary metallurgical testing.  The Arrow Zone was the subject of a 43-101 report in 2017 that presented an inferred mineral resource of 2,100,000 tonnes grading 5.78% zinc, 0.72% copper, 0.60 grams per tonne (g/t) gold and 19.5 g/t silver. (8.42% zinc eq.)

Additionally, the Company plans to survey the older drill holes on the Arrow Zone, which were drilled by Noranda in 1997 and 1998, using a gyro or similar method, to accurately determine hole deviation.  Collars of all holes on the Arrow zone will be surveyed by differential GPS to determine their precise location and the initial azimuth.  These new and precise measurements will allow more precise positioning of drill intercepts and will ultimately lead to a higher level of confidence in the mineral resource.

Approximately 10 diamond drill holes totaling approximately 2,000 metres will test the Fredart “A” zone (also referred to as the Copperlode “A” zone).  A historical resource estimate made in 1971 for the Fredart “A” zone, based on diamond drilling in the 1960s, was 386,000 tonnes grading 1.56% copper and 33.6 g/t silver, or alternatively 219,500 tonnes at 1.95% copper and 41.8 g/t silver.  Neither of these estimates conforms to any class of mineral resource or mineral reserve defined by the 2014 CIM guidelines.

Although the first five holes in 1965 were assayed for gold with results up to 1.2 g/t Au, the remaining 76 holes were not assayed for gold.  Four of the highest grade and widest drill intercepts on the Fredart “A” zone were:

DDH 65-03: 1.83 metres @ 5.24% Cu and 170.45 g/t Ag

DDH 66-11: 6.61 metres @ 3.37% Cu and 159.52 g/t Ag

DDH 66-15: 17.53 metres @ 2.54% Cu and 45.72 g/t Ag

DDH 66-18: 46.21 metres @ 1.18% Cu and 51.11 g/t Ag

Intersection lengths are core lengths; true widths are not known.  Sampling, assaying, security and QC protocols are unknown.

Technical information in this news release was reviewed by Colin Bowdidge, Ph.D., P.Geo., a Qualified Person as defined in National Instrument 43-101.

#RioTinto Exercises #Option for #PistolBayMining $PST C-Block #Uranium #Properties

Pistol Bay (TSX.V-PST)  has entered into an amending and final agreement with Rio Tinto Canada Uranium Corp. (”RTCUC” or “Rio Tinto”), with regard to the C 4, 5 and 6 Uranium properties, whereby Rio Tinto will make a final cash payment of $1,000,000 to Pistol Bay.

The C block of Uranium properties, located in the Athabasca Basin of Saskatchewan, is under option to Rio Tinto, which has earned a 75-per-cent interest to date.

Under the 4th amending and final agreement, Rio Tinto will acquire an additional 25% interest in the Property (thereby increasing its aggregate interest to 100%), by making a cash payment of $1,000,000 to Pistol Bay within 14 days from the effective date of this final agreement.  As part of this final agreement, no royalty is granted to Pistol Bay with respect to the property under the agreement.

PB #Blockchain $PST Announces “HashDrop” #Blockchain #Application

Pistol Bay Mining Inc. (TSX-V – PST; Frankfurt – OQS2) (“Pistol Bay” or the “Company’) is pleased to give an update on the development of our subsidiary, PB Blockchain Inc. (see news release dated November 15, 2017.) This wholly owned subsidiary is focused on blockchain applications for mining and resource company management. We will be leveraging the work of other Application Program Interface (API) companies to build a suite of blockchain products to address needs that are particular to the data management and security of mining/oil and gas companies. It is expected that many of these blockchain products could have crossover to other industries.

Charles Desjardins, President and CEO of PB Blockchain, is pleased to report that our development team is creating our own application named “HashDrop”. This will be accomplished by utilizing existing blockchain solutions to create a secure platform for parties to manage and update digital assets and documents within their data centers while providing trusted transactions with full confidence in the principle of the information being shared or accessed.

It is a secure, comprehensive, and unalterable platform that eliminates the time and costs of document sharing and assembly. It enables the organization to better coordinate compliances, deliver information efficiently, and trade digital assets securely. With a wide range of device types, our platform adapts to various device configurations.

Our easy to use interfaces are backed by the infrastructure behind the scenes to ensure fast, reliable uploads, downloads, and sharing. Our team who is creating HashDrop will continue to evolve the product and architecture to ensure speed data transfer and improved reliability.

The framework of our HashDrop application will be as follows:

Architecture

Designed with multiple levels of protection covering:

  • Data transfer
  • Encryption
  • Network configuration
  • Application-level controls all distributed across a scalable, secure infrastructure

Platform Objectives

  • A secure platform for users or parties to manage and update digital assets and documents
  • Integrate with Ethereum blockchain for logging all digital assets, data, and documents
  • Validate and allow transfer of ownership of the digital assets

Authentication

  • Different levels of authority access
  • Login/register using email and password

Accessibility

  • Parties can share and manage digital assets anywhere with internet access – with the utilization of public blockchain, information is shared under a fast and secure environment

Search Function

  • Authorized members are able to search for all data & digital assets that are uploaded on to the blockchain platform through our user-friendly interface
  • Our HashDrop application will communicate with the secured database that is synced with the blockchain, where uploaded data & digital assets are recorded

Quality Control

  • Documentation errors are the No.1 source of defects and generate excessive costs and time
  • Our platform eliminates duplicate documents, lost documents, document issues, and exceptions

Due Diligence

  • Whether it is file transfer or trade of digital assets, the costs will be significantly reduced to all parties to review and audit the documents and data associated with the transaction

Sharing Permissions

Administration will have comprehensive control of:

  • The team sharing abilities
  • Whether members can share files and folders with people within the company
  • Whether members can edit folders owned by people within the company
  • Whether members can create file request and collect files from other members of the company
  • Whether members can view and make comments on files

@PistolBayMining $PST Signs Confidentiality Agreements and Applies for Additional Drill Permits for Confederation Lake

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Pistol Bay (TSX.V-PST) has signed Confidentiality Agreements (“CAs”) with two prospective partners who have expressed interest in farming in to part or all of the 42,000-acre Confederation Lake zinc-copper project east of Red Lake, Ontario.  One CA has been signed by a mid-tier producer, and the other by a junior exploration group.

Pistol Bay has applied to the Ontario Ministry of Northern Development and Mines (“MNDM”) for exploration permits covering the Garnet, Fredart, Moth and Fly claim groups.  The MNDM circulated the applications to potentially affected First Nations and other aboriginal organizations on September 22, 2017, with no comments or concerns received to date.  Exploration permits are normally issued within 50 days of the circulation date unless serious concerns have been raised by indigenous interests.  The Company currently holds an exploration permit for the Dixie property.

Charles Desjardins, CEO of Pistol Bay, commented “The level of interest expressed by companies that have approached us about possible farm-ins and joint ventures is a testament to the quality of the Confederation Lake project.  With zinc prices at a record high, there’s lots of demand for zinc and copper exploration projects. Not many companies can offer a belt-wide property base with proven VMS mineralization and a new airborne EM survey with multiple untested targets.”

@PistolBayMining $PST Increases Size of Confederation Lake VTEM Survey

Pistol Bay Logo3Pistol Bay expanded the upcoming VTEM airborne electromagnetic and magnetic survey to cover almost twice the area of the original survey plan. Geotech Limited is contracted to survey the 40 km length of the Confederation Lake greenstone belt, southeast of Red Lake, Ontario.

With a larger loop, more power and better signal-to-noise resolution than earlier airborne electromagnetic systems, the current version of VTEM™, known as VTEM™ Plus, is able to resolve conductors at significantly greater depths than any previous airborne system.  By flying a survey over large areas of favourable geology, Pistol Bay will be exploring a depth slice that has only been investigated in the past by large-loop ground EM systems over very limited areas.  Target definition will be materially assisted by two recently acquired data sets.  A whole-rock geochemical database with almost 7,000 analyses was inherited from Noranda Exploration by AurCrest Gold Inc. and delivered to Pistol Bay as part of the AurCrest Gold property acquisition (see Pistol Bay news release January 18, 2017).  As well, a data set of Selco drill results, many of which were never in the public domain was supplied by the vendor of the Joy North property (see Pistol Bay news release February 22, 2017).

@PistolBayMining $PST Executes LOI to Option Copperlode Property with Five Known Zinc-Copper Zones

Pistol Bay has the option to acquire up to an 80 percent interest in the Copperlode Property by making certain payments and share issuances.  The Copperlode Property consists of four mining claims comprising 31 claim units for a total area of approximately 496 hectares or 1,225 acres.  Frontline holds the claims under option from a vendor.  The Copperlode Property hosts two mineralized zones with historical mineral resources based on drilling by Copperlode Mines Ltd. and Rexdale Mines Ltd. in the 1960s and 1970s:

The Copperlode “E” Zone has a historical resource of 145,000 tonnes with reported grades of 8.28% zinc, 1.02% copper and 24 grams per tonne silver.  The Copperlode “D” Zone has a historical resource of 32,600 tonnes reported to average 7.58% zinc and 0.26% copper.  These historical resources do not comply with current standards as spelled out in National Instrument 43-101.  Insufficient work has been done on these zones by a qualified person to determine whether 43-101 compliant mineral resources exist.

Other mineralized zones on the Copperlode Property, with selected diamond drill intercepts, are:

  • Copperlode “B” zone, 6.3 metres @ 2.50% zinc and 1.68% copper
  • Copperlode “C” zone, 1.5 metres @ 0.21% zinc and 6.02% copper
  • Hornet Zone, 6.6 metres @ 7.56% zinc and 0.08% copper, also 5.03 metres @ 4.07% zinc and 1.13% copper.  The Hornet zone was discovered by Noranda Exploration in 1997; it is open at depth and along strike.

Visit:  www.pistolbaymining.com for full news release  Pistol Bay Logo3

@PistolBayMining $PST Closes #Financing, Extends Expiry on #Warrants

Pistol Bay Logo3Pistol Bay $PST closed a non-brokered private placement financing for gross proceeds of $336,600, issuing 3,960,000 units at a price of $0.085 per unit, each unit comprising of one common share and one transferable share purchase warrant, with each warrant entitling the holder to purchase one additional common share for a period of 18 months at a price of $0.12.

The Company has paid finder’s fees of a total of $32,810, 173,000 common shares, and an aggregate 223,000 finder’s warrants. Pistol Bay will use the proceeds of the private placement for exploration expenditures and general working capital.

The Company will extend the expiry date of 7,632,500 common share purchase warrants that were issued on August 29, 2016. The old expiry date of August 29, 2017 will be extended to August 29, 2018.

@PistolBayMining $PST to Commence VTEM (TM) Survey, Confederation Lake Project, Northwest Ontario

Pistol Bay $PST has contracted Geotech Ltd to carry out a 1,128 line-km helicopter-borne survey of the central part of the Company’s land position in Ontario. The survey will use Geotech’s Versatile Time-Domain Electromagnetic (VTEM Plus) system, which  includes a horizontal magnetic gradiometer.

Pistol Bay anticipates that this survey will explore the survey area to a significantly greater depth than previous airborne surveys, the last of which was done 20 years ago.

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@RioTinto to Provide $750,000 Cash Injection to @PistolBayMining $PST

Pistol Bay $PST has amended their agreement with Rio Tinto Exploration Canada with regard to the C4, 5 and 6 Uranium properties, whereby Rio Tinto will make an initial cash payment of $750,000 to Pistol Bay.

Under the amending agreement, Rio Tinto will acquire an additional 25% interest in the Property (thereby increasing its aggregate interest to 100%), by:

a) paying Pistol Bay $750,000 on or before April 17, 2017; and b) paying Pistol Bay one of the following payments:

i) $1,500,000 on or before 31 December 2017; ii) $2,000,000 on or before 31 December 2018; or iii) $2,250,000 on or before 31 December 2019.

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