Kaminak Announces 2016 Coffee Gold Project Budget of $29.0 Million and Cash Proceeds of $14.4 Million from Warrants Exercise

VANCOUVER, May 5, 2016 - Kaminak Gold Corporation (TSX VENTURE:KAM) ("Kaminak" or the "Company") today announced that the Board of Directors has approved a $29.0 million, 2016 budget in support of its development-track Coffee Gold Project located 130 km south of Dawson City in Yukon Territory, Canada. The 2016 program will consist of environmental baseline, permitting and exploration activities designed to de-risk and advance the project towards production while continuing to unlock future mining opportunities at Coffee.

Eira Thomas, CEO commented: "Kaminak has embarked upon another busy year at Coffee, and with the recent, accelerated exercise of outstanding warrants, we remain well financed to achieve all of our objectives for 2016 and beyond. Initiating the permitting process for our first gold mining opportunity remains a top priority, but exploration to realize some of the significant resource expansion potential that exists proximal to the main resource area and regionally within the under-explored Coffee gold district, is also an important theme. We are excited to be getting back to our exploration roots and focused on making new gold discoveries in 2016."

Additional cash proceeds of $14.4 million from the accelerated expiry of warrants provides sufficient funding for all of 2016's activities including corporate general and administrative expenses (G&A). We expect to end fiscal 2016 with a cash balance of approximately $9.0 million.

Approximately 48% of the 2016 budget ($13.9M) has been allocated to mine permitting, while a further 21% ($6.2M) will be spent on pre-development/advanced engineering. Approval has also been granted by the Board of Directors for up to a $5 million exploration program at Coffee with phase I expenditures estimated at $2.6 M. The remaining expenditures in the budget have been allocated to Corporate G&A, marketing and the opening of offices in both Whitehorse and Dawson City.

Budget Item	Amount (in '000s)
Permitting		13,979
Engineering and pre-development work		6,233
Corporate G&A, including corporate development		3,738
Exploration*		5,073
Total Budget - Fiscal 2016	$	29,023

*Phase I of $2.6 M, Phase II of $2.5 M contingent on results

A positive feasibility study was announced for the Coffee Project in January of this year, indicating that Coffee represents a robust, high margin, open pit, heap-leach gold mining opportunity using a US$1150 gold-price and a US/CDN exchange rate of $0.78. The $317 million project is expected to repay capital in 2 years and produce 184,000 ounces/annum over a ten year mine life at all in sustaining costs of US$550/ounce. Significant resource expansion potential remains both proximal to the main resource area and regionally throughout the Coffee gold district.


2016 Coffee Gold Project - Environmental and Baseline Studies and Permitting Programs

In 2016, Kaminak will continue collecting environmental and baseline data in support of mine permitting, which is expected to commence in early Q3, 2016 with the submission of our Project Proposal to the Yukon Environment and Socio Economic Assessment Board (YESAB) for consideration. Once the project proposal has been deemed adequate, Kaminak will be in a position to submit applications for both its Quartz Mining and Water licenses; key approvals required for construction. Kaminak is aiming to receive all required permits to begin construction at Coffee by Q2, 2018. This will facilitate an approximately 18 month construction period with first gold production anticipated by Q4, 2019. At present, Kaminak is in the pre-submission phase and is in the process of engaging with regulators and First Nations about our project, seeking their input on our plan and working to identify issues and values of importance prior to submitting the project proposal. Feedback received to date has been encouraging; engagement is ongoing.


2016 Coffee Gold Project - Exploration Program

Kaminak mobilized field crews to the Coffee project and exploration drilling is expected to commence in the coming weeks. Drilling will be focused on testing exciting, new, never drilled before targets and follow-up expansion drilling on previously drilled discoveries, primarily in 2010, that are shallow, oxide bearing and proximal, but not included, in the current mine plan. With only 20% of the 150,000 acre Coffee property systematically explored, Kaminak has already defined more than 20 km of under-explored gold in soil anomalies which includes eight early-stage drill discoveries proximal to the proposed Coffee mine plan.

Please view the supporting images here:
www.kaminak.com/_resources/pdf/Resource_Expansion_Images.pdf.

To date, every Coffee gold deposit has been discovered by drill testing gold in soil anomalies typically associated with well-defined magnetic responses.

Kaminak is planning a phased approach totaling up to $5 million dedicated towards exploration and commencing with a $2.6 million program that includes soil sampling, mapping, trenching and drilling. Priority targets include step-out drilling on known gold-bearing structures such as Supremo T3, which contributes more than one million ounces to the proposed Coffee mine plan and remains open along strike and to depth. The second phase of exploration will be contingent upon results of the phase I program. Further details of the exploration program will be announced in the coming weeks.


Accelerated Expiry of Warrants

Kaminak is pleased to confirm that all 13,719,512 warrants issued as part of the October 30, 2015 private placement have now been exercised, for gross proceeds to the Company of $14.4 million. The Company intends to use these proceeds for working capital and for a phase II exploration program of $2.5 million this year, results dependent. Following the exercise of these warrants, the Company has 185,958,847 common shares outstanding (198,474,847 fully-diluted) and a cash position of approximately $33.0 million; we anticipate ending fiscal 2016 with a cash balance of approximately $9.0 million.

Kaminak's disclosure of a technical or scientific nature in this press release has been reviewed and approved by Tim Smith, P.Geo, Vice President Exploration for Kaminak Gold Corp., who serves as a Qualified Person under the definition of NI 43-101.


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.


Caution Concerning Forward-Looking Statements

Certain disclosures in this release, including statements relating to management's assessment of plans, projects and intentions with respect to the further development of the Coffee Project and future exploration programs; the projected price of gold and the associated viability of the Coffee Project; the intent of Kaminak to move forward with the permitting phase of the Coffee Project; the estimated after-tax NPV and IRR associated with the Coffee Project; the anticipated mine-life, annual gold production, capital costs, and all-in sustaining costs associated with the Coffee Project; the expected impact of the Coffee Project on Yukon's GDP; the performance of the Coffee Project with respect to gross revenue, creation of jobs, and pay back capital; the estimated timeframe associated with project construction; the Company's intention to further examine value-enhancing opportunities such as contract mining and second hand equipment, among others; the Company's intention to submit a project proposal to the YESAB in Q3 2016; and the Company's intention to apply for and ability to obtain required permits in a timely manner 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. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "expects", "anticipates", "believes", "intends", "estimates", "potential", "possible" and similar expressions, or statements that events, conditions or results "will", "may", "could" or "should" occur or be achieved.

Forward-looking statements are based on the assumptions, opinions and estimates of management as of the date such statements are made, and they are subject to a number of known and unknown risks and uncertainties which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievement expressed or implied by such forward-looking statements. In particular, such risks include fluctuations in commodity prices and currency exchange rates; mineral resource and reserve estimates; operational risks associated with mineral exploration and production; title matters; possible variations in resources, grades, or recovery rates; uncertainty of estimates of capital and operating costs; changes in project parameters as plans continue to be refined; delays in obtaining government approvals or licenses; failure of equipment or processes to operate as anticipated; uncertainty surrounding the ability to obtain financing and to market the products; accidents or labour disputes, and other risks and uncertainties disclosed under the heading "Risk Factors' in the Company's most recent Annual MD&A, and in the Coffee Project technical report, both of which are available for download at www.sedar.com.

>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.


Cautionary Note Mineral Reserves and Mineral Resources:

The terms "Mineral Resource", "Mineral Reserve", "Probable Mineral Reserve", "Indicated Mineral Resource", and "Inferred Mineral Resource" used in this news release are Canadian mining terms as defined in accordance with NI 43-101 under the guidelines set out in the CIM Standards. Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability.

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.



Contact

Kaminak Gold Corporation
Tony Reda, Vice-President of Corporate Development
Direct: 604.646.4534 or Toll Free: 1.844.646.4520
604.646.4526
info@kaminak.com
www.kaminak.com