Barkerville Gold Mines Announces Sale of Shares by Controlling Shareholder to Osisko Mining Corp.

TORONTO, ON / TheNewswire / August 9, 2016 -Barkerville Gold Mines Ltd. (TSXV: BGM) (the "Company") announces that 2176423 Ontario Ltd., a company controlled by Eric Sprott, the controlling shareholder of the Company ("2176423"), has entered into an agreement with Osisko Mining Inc. ("Osisko"), pursuant to which it will sell an aggregate of 50,000,000 common shares of the Company (the "Barkerville Shares") representing approximately 17% of the outstanding Barkerville Shares. 2176423 agreed to sell 25,000,000 Barkerville Shares in exchange for 8,097,166 common shares of Osisko. 2176423 further agreed to sell the remaining 25,000,000 Barkerville Shares for an aggregate purchase price of $20,000,000, payable in cash. The Barkerville Shares were acquired by Osisko at a price of $0.80 per Barkerville Share.

Following the sale, the following will be the major shareholders of the Company:

• -Eric Sprott: holding, directly and indirectly, 55,281,643 Barkerville Shares, representing 18.8% of the issued and outstanding Barkerville Shares;

  -Osisko Gold Royalties Ltd.: holding 47,625,000 Barkerville Shares, representing 16.2% of the issued and outstanding Barkerville Shares; and

  -Osisko Mining Corp.: holding 50,000,000 Barkerville Shares, representing 17% of the issued and outstanding Barkerville Shares.

For further information on Barkerville Gold Mines Ltd., please contact:

Chris Lodder

President & Chief Executive Officer

clodder@barkervillegold.com

About Barkerville Gold Mines Ltd.

The Company is focused on developing its extensive land package located in the historical Cariboo Mining District of central British Columbia. Barkerville's mineral tenures cover 1,164 square kilometres along a strike length of 60 kilometres which includes several past producing hard rock mines of the historic Barkerville Gold Mining Camp near the town of Wells, British Columbia. The QR Project, located approximately 110 kilometres by highway and all weather road from Wells was acquired by Barkerville in 2010 and boasts a fully permitted 900 tonne/day gold milling and tailings facility. Test mining of the Bonanza Ledge open pit was completed in March of 2015 with 91,489 tonnes of ore milled producing 25,464 ounces of gold. The Company has completed a number of drilling and exploration programs over the past 20 years and is currently compiling this data with all historical information in order develop geologic models which will assist new management and provide the framework to continue to explore the Cariboo Gold Project. An extensive drill program is currently underway with the goal of delineating additional high grade gold mineralization.

Cautionary Statement on Forward -Looking Information

Neither the TSX Venture Exchange ("TSXV") nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This news release contains forward-looking information which is not comprised of historical facts. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, uncertainty over the outcome of any litigious matters, the Company's objectives, goals or future plans, statements regarding exploration results and exploration plans. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, capital and operating costs varying significantly from estimates, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, fluctuations in commodity prices, delays in the development of projects and the other risks involved in the mineral exploration and development industry, and those risks set out in the Company's public documents filed on SEDAR. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

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