Barkerville Announces Closing of First Tranche of Equity Financing

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 12/30/11 -- Barkerville Gold Mines Ltd. (TSX VENTURE: BGM)(FRANKFURT: IWUB) (the 'Company') announces today that it has closed the first tranche of its private placement financing previously announced on December 5, 2011 as amended December 16, 2011. The Company issued a total of 21,592,513 units at a price of $0.85 per unit for gross proceeds of $18,253,611.05. Each unit consists of one common share and one half of one common share purchase warrant. Each whole warrant is exercisable into one common share at a price of $1.10 per share until June 22, 2013 and June 23, 2013 respectively. In connection with the financing the Company will pay to the Agents a cash commission of up to 7% of the gross proceeds raised and issue broker's warrants to purchase common shares in an amount of up to 10% of the aggregate number of shares issued, exercisable until June 22, 2013 at $0.85 per share. All the securities issued are subject to a four month hold period expiring on April 23, 2012 and April 24, 2012 respectively. The net proceeds of the Offering will be released subject to predetermined expenditures agreed to by the Board in consultation with the Agents.

Golden Cariboo Resources Ltd. and Lions Gate Energy Inc. each subscribed for 404,200 units under the private placement. Each of the companies share common directors with Barkerville and therefore these subscriptions constitute a 'related party transaction' within the meaning of Multilateral Instrument 61-101 - Protection of Minority Securityholders in Special Transactions ('MI 61-101'). However, the Company is exempt from the requirement to obtain an independent valuation with respect to the related party transactions pursuant to Section 5.5(b) of MI 61-101 as no securities of the Company are listed or quoted for trading on the Toronto Stock Exchange, the New York Stock Exchange, the American Stock Exchange, the NASDAQ stock market or any other stock exchange outside of Canada and the United States and the requirement to obtain minority shareholder approval pursuant to Section 5.7(1)(a) of MI 61-101 as neither the fair market value of the subject matter of the private placement nor the consideration for the private placement, insofar as it involves the related parties, exceeds 25% of the Company's market capitalization.

About Barkerville Gold Mines Ltd.

Since the mid 1990s the Company has focused on exploration and development of gold projects in the Cariboo Mining District in central B.C. The Company's mineral tenures now cover over 117,691.14 hectares, encompassing seven past producing hard rock mines and three NI 43-101 gold deposits, including the QR Mine & Mill. The QR Property was acquired in February 2010 and includes a 900 tonne/day gold milling facility and a permitted gold mine located approximately 110 kilometers by highway and all-weather road from the Barkerville Gold Camp. Mining operations commenced at QR in the first quarter of fiscal 2011 and the Company began pouring dore gold in September 2010. In November 2010, the Company acquired a second permitted mill currently on care and maintenance in Revelstoke, B.C. for relocation to the Barkerville Gold Camp near Wells, B.C. and upgrade to a 3,000-tonne/day facility subject to government approvals. In November 2010 the Company and the Lhtako Dene First Nation also signed a Project Agreement in relation to its Bonanza Ledge and Cariboo Gold Projects. The Company has not hedged any of its future gold production.

The technical information in this News Release has been reviewed and approved by Chief Geologist Jim Yin, PhD, P.Geo, a qualified person as defined in National Instrument 43-101.

On behalf of the Board of Directors

J. Frank Callaghan, President and CEO

This News Release contains forward-looking statements. Forward-looking statements are statements which relate to future events and conditions and therefore involve inherent risks and uncertainties. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our industry, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested herein. Except as required by applicable law, the Company does not intend to update any of the forward-looking statements to conform these statements to actual results. All phases of the Company's operations are subject to environmental regulation and governmental approval and permits and there can be no assurance that the Company will obtain all the requisite permits for future development. Mining is an inherently risky business with large capital expenditures and cyclical metals markets.

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.

Contacts:

Barkerville Gold Mines Ltd.

J. Frank Callaghan

President and CEO

(604) 669-6463
www.barkervillegold.com