BOZ

Banks Island Gold Ltd. (TSX VENTURE:BOZ) - 



--  All nine holes drilled at Bob intersected mineralization 
--  High grade gold intersections at the upper Bob Zone over significant
    widths 
--  Bob Zone remains open for expansion at depth and along strike 



Banks Island Gold Ltd. (the "Company") announces that it has received assay
results for nine diamond drill holes (819m) completed at the Bob Zone in April
2012. All nine holes drilled at Bob intersected the mineralized vein.


Diamond drilling at the Bob Zone was focused on definition drilling in the area
of the current Inferred Resource. Highlights from the recent drilling include an
intercept of 41.5gpt Au, 126gpt Ag, 1.4% Cu, 0.4% Pb and 1.9% Zn over 6.4m in
drillhole BOB-12-07 and 39.1gpt Au, 113gpt Ag, 1.0% Cu, 1.8% Pb and 7.1% Zn over
4.0m in drillhole BOB-12-04. Significant mineralized intersections are displayed
in Table 1.




Table 1: Significant Mineralized Intersections

---------------------------------------------------------------------------
                                     Estimated                             
                               Core       True                             
              From     To  Interval      Width     Au     Ag   Cu   Pb   Zn
Hole            (m)    (m)       (m)        (m)  (gpt)  (gpt)  (%)  (%)  (%)
---------------------------------------------------------------------------
BOB-12-01     45.6   49.0       3.5        2.9   35.4    125  1.9  0.3  0.3
---------------------------------------------------------------------------
BOB-12-02     55.0   58.5       3.5        2.0   12.8     21  0.1  0.0  0.7
---------------------------------------------------------------------------
BOB-12-03     88.0   95.1       7.1        2.3   30.4     53  0.5  0.2  0.6
---------------------------------------------------------------------------
BOB-12-04     41.5   45.5       4.0        3.3   39.1    113  1.0  1.8  7.1
---------------------------------------------------------------------------
BOB-12-05     62.7   66.0       3.3        2.2    0.9     43  0.3  0.0  1.2
---------------------------------------------------------------------------
BOB-12-06    133.8  134.4       0.5        0.2   27.5     68  0.7  1.2 12.1
---------------------------------------------------------------------------
BOB-12-07     37.9   44.3       6.4        5.0   41.5    126  1.4  0.4  1.9
---------------------------------------------------------------------------
BOB-12-08     65.3   66.9       1.6        0.8   17.0     27  0.2  0.0  0.2
---------------------------------------------------------------------------
BOB-12-09     95.7   98.8       3.0        1.0    5.2     30  0.0  0.1  0.0
---------------------------------------------------------------------------



Mr. Mossman, CEO of the Company, stated; "The Bob Zone is very important to the
Company's planned pilot mine on Banks Island. The recent drilling has confirmed
that the upper Bob Zone has consistently high gold values. The upper portion of
the Bob Zone is near surface and is largely accessible from the existing
underground workings. Targeting this area early in the mine plan is a key factor
in achievement of the exceptional rate of return and short payback (1 month)
demonstrated in our recent Preliminary Economic Assessment."


The Company has initiated work intended to support a feasibility level study for
the pilot mine on Banks Island. Mr. Robert Baldwin, P.Eng., has been retained to
prepare a revised resource classification for the Bob Zone. Detailed
metallurgical testing and process design is being conducted under the
supervision of Mr. Lyn Jones, P.Eng.


On the 23rd of November 2011, the Company released the results of a Preliminary
Economic Assessment for a pilot scale underground mining operation on Banks
Island. At the base case metal price assumption of CDN$1,360/oz Au, this study
resulted in a pre-tax Net Present Value of $26.4M at an 8% discount rate with an
Internal Rate of Return of 414% and a 1.2 month payback on initial capital. At a
gold price of CDN$1,700/oz, the pre-tax NPV (8%) was estimated at $45.0M with an
IRR of 633% and a 0.9 month payback period. The current inferred mineral
resource at the Bob Zone is 55,000 tonnes at 21gpt Au, which includes the upper
Bob Zone resource of 14,000 tonnes at 41gpt Au.


The minable resource used in preparation of the preliminary assessment is based
on an Inferred Resource. The preliminary assessment is preliminary in nature and
includes inferred mineral resources that are considered too speculative
geologically to have the economic considerations applied to them that would
enable them to be categorized as mineral reserves. Mineral resources that are
not mineral reserves do not have demonstrated economic viability. There is no
certainty that the results and conclusions presented in this preliminary
assessment will be realized.


With definition drilling inside the current resource at the Bob Zone complete,
the Company plans to target the potential projection of the mineralized zone to
depth and along strike. The current resource at the Bob Zone is open at depth
and is currently defined to a depth of only 125m below surface.


The Company has recently completed 12 diamond drill holes at the Discovery Zone
and expects to receive the assay results within the month of May.


Dr. Dirk Meckert, Ph.D., P.Geo., is the qualified person who reviewed and
approved the contents of this news release.


Analytical work was carried out by AGAT Laboratories Ltd. in Mississauga,
Ontario. Quality assurance and quality control programs include the use of
analytical blanks, standards, and duplicates in addition to the lab's own
internal quality assurance program. Samples are fire assayed with an ICP-EOS
finish to determine gold values. Samples containing greater than 10gpt gold are
fire assayed with a gravimetric finish.


The Company is a junior mining resource exploration company focused on exploring
for and developing economically viable mineral resources. The Company's mineral
property is located in British Columbia. For more information, please refer to
the Company's website at www.banksislandgold.com.


ON BEHALF OF THE BOARD OF DIRECTORS

Benjamin W. Mossman, P.Eng., President, Director, & Chief Executive Officer

This press release contains forward-looking statements. All statements, other
than statements of historical fact, constitute "forward-looking statements" and
include any information that addresses activities, events or developments that
the Company believes, expects or anticipates will or may occur in the future
including the Company's strategy, plans or future financial or operating
performance and other statements that express management's expectations or
estimates of future performance.


Forward-looking statements are generally identifiable by the use of the words
"may", "will", "should", "continue", "expect", "anticipate", "estimate",
"believe", "intend", "plan" or "project" or the negative of these words or other
variations on these words or comparable terminology. These statements, however,
are subject to known and unknown risks, uncertainties and other factors that may
cause the actual results, level of activity, performance or achievements of the
Company to be materially different from those expressed, implied by or projected
in the forward-looking information or statements. Important factors that could
cause actual results to differ from these forward-looking statements include but
are not limited to: risks related to the exploration and potential development
of the Company's project, the actual results of current exploration activities,
conclusions of economic evaluations, changes in project parameters as plans
continue to be refined, future prices of gold, as well as those factors
discussed in the sections relating to risk factors of the Company prospectus
dated September 30, 2011 filed on SEDAR.


There can be no assurance that any forward-looking statements will prove to be
accurate, as actual results and future events could differ materially from those
anticipated in such statements. Accordingly, the reader should not place any
undue reliance on forward-looking information or statements. Except as required
by law, the Company does not intend to revise or update these forward-looking
statements after the date of this document or to revise them to reflect the
occurrence of future unanticipated events.


To view "Figure 1 - Longsection through Bob Zone showing Significant Mineralized
Intersections" accompanying this press release, please click on the following
link: http://media3.marketwire.com/docs/boz515.pdf

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