TORONTO, ONTARIO--(Marketwired - June 29, 2016) - Gowest Gold Ltd. ("Gowest" or the "Company") (TSX VENTURE:GWA) is pleased to announce that it has entered into a negotiation agreement with Northern Sun Mining Corp. ("Northern") for the use of the Redstone Mill (the "Mill") located in Timmins, Ontario to process material from the Company's Bradshaw Gold Deposit ("Bradshaw").

The parties intend to negotiate an arrangement (the "Proposed Transaction") pursuant to which Gowest will have the right to use the Mill for the purpose of processing up to 500 tonnes per day of material as part of its bulk sample and pre-production program at Bradshaw. (See Gowest news release dated June 16, 2016.) The Proposed Transaction may also include the right of Gowest to (i) purchase the Mill; or, (ii) enter into a long-term agreement to lease the Mill; or, (iii) enter into some other form of transaction pursuant to which Gowest will acquire or have access to the Mill for the purpose of processing material produced by the Company.

Northern and Gowest shall negotiate with each other in good faith in respect of the Proposed Transaction until no later than October 31, 2016. As consideration for the right to negotiate, Gowest will pay Northern a fee to defray part of the Mill's care and maintenance costs.

Gowest President & CEO, Greg Romain said, "We are extremely pleased with the discussions that have taken place with Northern to date. This is a great mill for processing our material both short and long term. We look forward to working with the Northern team in identifying additional sources of feed and optimizing the Mill for our mutual benefit."

Qualified Person

The scientific and technical disclosure in this press release has been prepared and approved by Mr. Kevin Montgomery, P.Geo., Gowest's Manager of Exploration and a Qualified Person under National Instrument 43-101.

About Gowest

Gowest is a Canadian gold exploration and development company focused on the delineation and development of its 100% owned Bradshaw Gold Deposit (Bradshaw), on the Frankfield Property, part of the Corporation's North Timmins Gold Project (NTGP). Gowest is exploring additional gold targets on its +100-square-kilometre NTGP land package and continues to evaluate the area, which is part of the prolific Timmins, Ontario gold camp. Currently, Bradshaw contains a National Instrument 43-101 Indicated Resource estimated at 2.1 million tonnes ("t") grading 6.19 g/t Au containing 422 thousand oz Au and an Inferred Resource of 3.6 million t grading 6.47 g/t Au containing 755 thousand oz Au. Further, based on the Pre-Feasibility Study produced by Stantec Mining and announced on June 9, 2015, Bradshaw contains Probable Mineral Reserves, using a 3 g/t Au cut-off and utilizing a gold price of US$1,200 / oz, totalling 1.8 million t grading 4.82 g/t Au for 277 thousand oz Au.

Forward-Looking Statements

This news release may contain certain "forward looking statements". Forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Any forward-looking statement speaks only as of the date of this news release and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise.

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