Kaminak Announces Updated Mineral Resource Estimate at Coffee Gold Project: Oxide Gold Ounces Increased by 73%; Indicated Gold Resources Added

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan 28, 2014) - Kaminak Gold Corporation (TSX VENTURE:KAM) is pleased to announce an updated National Instrument 43-101 Mineral Resource Estimate on the Coffee Gold Project, Yukon, Canada. At a base case cut-off of 0.5 grams per tonne gold ("g/t Au") for Oxide and Transitional material and a 1g/t Au cut-off for Sulphide material, the updated mineral resource estimate consists of an Indicated Resource of 14 million tonnes grading at 1.56g/t Au for 719,000 ounces, including 480,000 ounces gold classified as Oxide, and an Inferred Resource of 79 million tonnes grading at 1.36g/t Au for 3,434,000 ounces of gold, which includes 2,078,000 ounces gold classified as Oxide.

This updated Resource Estimate will be incorporated together with the metallurgical results reported in 2013 (see news release 2 December 2013) into a Preliminary Economic Assessment ("PEA"), the next step for the Coffee Project, set to commence later this month. The Company is fully funded through to completion of the PEA, which is budgeted at $0.5M to completion. The Company currently has $8 million in cash and no debt.

Coffee Gold Project Highlights

• 719,000 ounces gold Indicated and 3,434,000 ounces gold Inferred, which translates to a 28% increase in overall gold resources since December 2012 and includes a 73% increase in total Oxide gold ounces.
• 57% of the Oxide and Transition resource is within 100m of surface and 80% is within 150m.
• Oxide resources from 0-150 metres below surface totaling 8Mt at 1.77g/t Au for 467,000 ounces gold Indicated, and 48Mt at 1.28g/t Au for 1,962,000 ounces gold Inferred.
• Metallurgical test work in 2013 returned column leach gold recoveries of ≥90% on 1 inch crushed Oxide material from Latte and Supremo deposits within 40 days of leaching, including 81% gold recovery after ten days leaching.
• All deposits remain open along strike and at depth and the Company believes that there is high potential to add near surface oxide ounces proximal to the current NI 43-101 resource.

Images of the block model at various cut-off grades are available on the Kaminak website at www.kaminak.com.

"Drilling in 2013 has successfully expanded the gold resources at Coffee and more importantly, contributed additional near surface Oxide gold resources, including over 450,000 ounces Indicated, plus 2,000,000 ounces Inferred," stated Eira Thomas, Kaminak President & CEO. "The results of our recently completed metallurgical test work program, where column leach testing returned greater than 90% gold recoveries in just forty days at a 1 inch crush, provides further support for the potential to develop a low cost, high return, heap leach gold project at Coffee. We anticipate another productive year in 2014, including the initiation of a PEA and continued drilling of priority targets at Coffee. All of our deposits remain open along strike and to depth."

2013 DRILLING PROGRAM OBJECTIVES COMPLETED

The Company announced on December 12, 2012, the maiden National Instrument 43-101 Mineral Resource Estimate on the Coffee Gold Project, of 64 million tonnes grading at 1.56 grams per tonne gold ("g/t Au") for 3,236,000 ounces of gold at a base case cut-off of 0.5g/t Au for Oxide and Transitional material and a 1g/t Au cut-off for Sulphide material. During 2013, the Company completed an additional 45,000m of drilling with the objective of expanding the resources along strike, and 10,000m of infill drilling within a portion of the Latte and Supremo T3 deposits, with the objective to delineate an initial component of Indicated Resources.

All objectives were achieved with the successful increase of Inferred Resources to a total of 79Mt at 1.36g/t Au for 3,434,000oz Au and the delineation of Indicated Resources over a 500m strike length at both the Latte and Supremo T3 deposits totalling 14Mt at 1.56g/t Au for 719,000oz Au.

DEPTH PROFILE & CLASSIFICATION OF OXIDE & TRANSITIONAL RESOURCES

Since initial discovery in 2010, the Company's drill strategy has been primarily to target near-surface gold mineralization up to a depth of approximately 200 metres below surface with the objective of delineating resources, which may potentially be amenable to open pit mining. The outstanding ≥90% column leach metallurgical recoveries from Oxide mineralization (see news release 2 December, 2013) provides additional rationale for focussing resource definition on delineation of shallow oxidized mineralization.

As outlined in Table 1, approximately 92% of the Indicated plus Inferred Mineral Resource Estimate is comprised of Oxide and Transitional ('Upper' and 'Lower') mineralization. Table 2 below further details the breakdown of Oxide and Transitional resources by depth below surface. Approximately 57% of the Oxide and Transitional resource occurs within 100 metres below surface and 80% occurs from 0-150 metres below surface.

During the 2013 field season, Kaminak undertook a sampling program testing the cyanide soluble characteristics of the gold in the Coffee Deposit. Samples selected for AuCN analysis were restricted to intervals where fire assay gold grades are greater than 0.3g/t. This data is reasonably distributed but, because it excludes lower-grade sample intervals, is not sufficient to support direct estimation of AuCN estimates in model blocks at this point in time. As an alternative, the ratio of AuCN/AuFireAssay was calculated in samples where AuCN data is present. These ratios were then interpolated in the block model and were utilized in combination with qualitative (visual) estimates of the intensity of oxidation, to provide information regarding the depth and intensity of oxidation in the structural corridors which host mineralization. Oxidation is channeled along the structural corridors that host the gold deposits, and it is common to find intense oxidation at depths of over 200m below surface. Strong oxidation is present over the majority of the Supremo and Double Double deposits. Oxidation is less pervasive at Latte, extending to about 125m below surface in some areas.

Four oxide types or domains have been interpreted for the Coffee deposit as described below.

The Oxide Zone is relatively consistent and is supported by visual logging as well as an interpretation of the AuCN data over a broad and representative sample set. The degree of oxidation is variable within the Upper and Lower Transition zones as reflected by the relatively large oxidation percentage ranges listed above. The Company intends to continue collecting AuCN data with the objective of improving the resolution of cyanide gold leachability within the Upper Transition Zone.

In contrast to the maiden NI 43-101 Inferred Mineral Resource Estimate (announced 12 December 2012), which utilized only qualitative visual logging to define the oxidation surfaces, the combination of qualitative and quantitative data utilized in the updated Indicated and Inferred Coffee Mineral Resource Estimate resulted in an overall increase in the proportion of Oxide tonnage within the model, from approximately 45% to 60-65%. This increase is due to the focus of 2013 exploration drilling programs on the continued delineation of shallow Oxide resources, and the re-classification of some resources from Transitional Zone within the 2012 model to Oxide Zone within the 2013 model.

COFFEE GOLD PROJECT MINERAL RESOURCE ESTIMATION PARAMETERS

The Coffee Gold Project January 2014 Indicated and Inferred Mineral Resource Estimate was completed by independent Qualified Person Robert Sim, P.Geo., of SIM Geological Inc. and is reported in accordance with the guidelines of the Canadian Securities Administrators National Instrument 43-101. The estimate is derived from 961 diamond core and reverse circulation drill holes completed from 2010 to 2013 for a total of 185,000 metres. The majority of the resource comprises the Latte - Supremo - Double Double deposits, which occur within close proximity to one another over an area measuring approximately 2km x 2km. The Kona deposit lies approximately 2.5 kilometres west of Latte.

The base case cut-off grade of 0.5g/t Au for Oxide and Transitional zones was determined based on assumptions that these are amenable to open pit mining methods and lower-cost extraction of the contained gold through heap leaching. The 1.0g/t Au base case cut-off limit for Sulphide zone resources is based on assumptions that this type of material may require underground mining methods and higher processing costs.

In order to provide additional information regarding the sensitivity of resources at higher cut-off grade thresholds, Table 3 presents a full breakdown of the Coffee Gold Project Mineral Resource Estimate by deposit and oxidation profile.

Three-dimensional block models were created within structural domain wireframes based on geostatistical applications using commercial mine planning software MineSight® (v8.20). The block size varies between deposit areas, ranging from 5 x 5 x 2 metres at Kona and Double Double to 10 x 5 x 3 metres at Latte and Supremo. The long axis of the blocks is aligned with the strike of the structural domain, and the shorter dimension is aligned across the strike direction. Interpolation parameters are defined based on a combination of geology, drill hole spacing and geostatistical analysis of the data. Individual structural zones, interpreted in the various deposit areas, are segregated for modeling purposes and dynamic search orientations are utilized which retain the banded nature of the gold mineralization in the resource model. The effects of anomalous outlier samples are controlled during block grade estimation through a combination of traditional top-cutting and outlier limitations which control the distance of influence of higher-grade data in the model. Block gold grades are estimated using ordinary kriging.

The resources are classified according to their proximity to sample locations and are reported, as required by NI 43-101, according to the CIM Definition Standards for Mineral Resources and Mineral Reserves. The Coffee Mineral Resource Estimate comprises relatively continuous, sub-vertical zones of gold mineralization that show the potential to be mined from surface or using underground mining methods (or a combination of the two). The reasonable prospects of economic extraction of the four deposit areas has been tested using floating cone pit shells based on reasonable projections of technical and economic parameters. The results show that the majority of the Oxide and Transition resource could be amenable to open pit extraction methods and the deeper Sulphide resources would likely be subject to underground mining methods. These tests are very preliminary in nature and are intended to determine the general projections for reasonable prospects of economic extraction of the mineral resource. There are no mineral reserves at the Coffee project. These results have been used in defining the projected base case cut-off thresholds for Oxide, Transition and Sulphide resources as described previously.

Full details of the modeling parameters and assumptions will be published in an updated NI 43-101 Coffee Technical Report, which is currently in preparation.

Images of the block model at various cut-off grades are available on the Kaminak website at www.kaminak.com.

About Kaminak

Kaminak Gold Corp. (TSX VENTURE:KAM) is exploring the Coffee Gold Project, a high-grade oxidized gold project located in the emerging White Gold District of the Yukon Territory, Canada. Since 2010, Kaminak has drilled 16 separate and distinct gold discoveries and established a NI 43-101 Mineral Resource Estimate consisting of an Indicated Resource of 14 million tonnes grading at 1.56g/t Au for 719,000 ounces, including 480,000 ounces gold classified as Oxide, and an Inferred Resource of 79 million tonnes grading at 1.36g/t Au for 3,434,000 ounces of gold, which includes 2,078,000 ounces gold classified as Oxide at a base case cut-off of 0.5g/t Au for Oxide and Transitional material and a 1g/t Au cut-off for Sulphide material. Coffee also hosts numerous drill discoveries and untested gold-in-soil anomalies outside of the resource area that have the potential to yield new oxide ounces.

All gold discoveries drilled at Coffee were made by drilling directly under gold-in-soil anomalies. The lack of glaciation over the Coffee property has allowed in-situ soil-sampling to be utilized as a highly effective and low cost exploration tool. All deposits within the resource remain open along strike and at depth and contain high-grade mineralization that comes to surface. Additionally there are over 25km of untested soil anomalies on the property that warrant drill testing, and only 20% of the 150,000 acre Coffee Property has been systematically grid soil sampled.

The Company presently has C$8 million in cash and no debt and is currently embarking upon mining scoping studies and planning the 2014 exploration program.

On behalf of the Board of Directors of Kaminak

Eira Thomas, President and CEO

Kaminak Gold Corp.

For further information about Kaminak Gold Corporation or this news release, please visit our website at www.kaminak.com.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Kaminak is currently in the final stages of preparing the NI 43-101 Coffee Technical Report, which will contain details of the mineral resource estimate and the recent metallurgical test work. This report is required to be announced and filed on SEDAR and the Kaminak website within 45 days of this news release.

Robert Sim, P.Geo., Consultant to the Company and a Qualified Person as defined by National Instrument 43-101 ("NI 43-101") has reviewed and approved the contents of this news release related to the mineral resource estimate. All samples were collected in accordance with industry standards. Splits from the drill core and RC percussion samples were submitted to the ALS sample preparation laboratory in Whitehorse, Yukon Territory, Canada, and then transferred to ALS' laboratory in Vancouver, British Columbia, Canada for fire assay and ICP analysis. Accuracy of results is tested through the systematic inclusion of standards, blanks and check assays. The mineral resource estimate referenced in this press release was prepared in November 2013 to January 2014 by Robert Sim, P.Geo., an independent Qualified Person as defined by NI 43-101. Kaminak's additional disclosure of a technical or scientific nature in this press release has been reviewed and approved by Mr. Tim Smith, MSc, P.Geo., Kaminak's Vice President of Exploration, who serves as a Qualified Person under the definition of National Instrument 43-101.

Cautionary Note concerning estimates of Inferred and Indicated Resources:

This news release uses the terms "Inferred Resources" and "Indicated Resources", which have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred and/or Indicated Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Resources may not form the basis of feasibility or other economic studies. Kaminak advises U.S. investors that while this term is recognized and required by Canadian regulations, the U.S. Securities and Exchange Commission does not recognize it. U.S. investors are cautioned not to assume that part or all of an Inferred and Indicated resource exists, or is economically or legally minable.

Caution Concerning Forward-Looking Statements

Certain disclosures in this release, including management's assessment of plans, projects and intentions with respect to the further development of the Coffee Project and future exploration programs, constitute forward-looking statements that are subject to numerous risks, uncertainties and other factors relating to Kaminak's operations as a mineral exploration company that may cause future results to differ materially from those expressed or implied in such forward-looking statements, including risks as to the completion of the plans and projects. Readers are cautioned not to place undue reliance on forward-looking statements. Except as required by law, Kaminak expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

The mineral resource figures referred to in this press release are estimates and therefore insufficient to allow meaningful application of the technical and economic parameters to enable an evaluation of technical or economic viability and no assurances can be given that mining of the Coffee Project is commercially viable or that the indicated levels of gold will be produced. Such estimates are expressions of judgment based on knowledge, mining experience, analysis of drilling results and industry practices. Valid estimates made at a given time may significantly change when new information becomes available. While the Company believes that the resource estimates included in this press release are well established, by their nature, resource estimates are imprecise and depend, to a certain extent, upon statistical inferences which may ultimately prove unreliable. If such estimates are inaccurate or are reduced in the future, this could have a material adverse impact on the Company.