/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

TORONTO, Dec. 19, 2016 /CNW/ - Barkerville Gold Mines Ltd. (TSXV:BGM) ("Barkerville" or the "Company") is pleased to announce that is has closed its previously announced fully-marketed private placement of flow-through common shares of the Company, led by Canaccord Genuity Corp., together with National Bank Financial Inc., as agents (the "Agents").

The Company issued an aggregate of 20,588,500 flow-through common shares of the Company ("Flow-Through Shares"), comprised of (i) 15,032,000 Flow-Through Shares at a price of C$0.60 per share, and (ii) 5,556,500 Flow-Through Shares at a price of C$0.58 per share, for total aggregate proceeds of C$12,241,970 (the "Offering"). The Company understands that purchasers of Flow-Through Shares at $0.60 per share may, as part of charitable donation arrangements, subsequently donate such shares to "qualified donees" as defined in the Income Tax Act (Canada).

The Company paid a total cash commission of $489,728.19 to the Agents, equal to (i) 5% of the gross proceeds of the Offering from purchasers not on the "President's List", and (ii) 3% of the gross proceeds of the Offering from purchasers on "President's List".

The gross proceeds received by the Company from the Offering will be used to incur Canadian exploration expenses on the Company's properties in the Province of British Columbia that are "flow-through mining expenditures" (as such terms are defined in the Income Tax Act (Canada)) (the "Qualifying Expenditures"). The Qualifying Expenditures will be renounced to the subscribers with an effective date no later than December 31, 2016, in the aggregate amount of not less than the total amount of the gross proceeds raised from the Offering.

The securities issued pursuant to the Offering will be subject to a statutory four month hold period ending on April 20, 2017 pursuant to applicable securities legislation.

The securities offered have not been, and will not be, registered under the U.S. Securities Act of 1933 (the "U.S. Securities Act") or any U.S. state securities laws, and may not be offered or sold in the United States of America or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This press release does not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor in any other jurisdiction in which such offer, solicitation or sale would be unlawful.

Cautionary Statement on Forward-Looking Information

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, 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.

Neither the 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.

SOURCE Barkerville Gold Mines Ltd.