Banks Island Gold Ltd. announced further update on operations at its 100% owned Yellow Giant Gold Project, located on Banks Island British Columbia. The company is authorized to operate under the existing M-241 authorization mine plan/management plan which covers the Tel Mine, process plant, associated facilities. Areas outside of the mineral lease, such as Discovery Zone, are permitted under exploration permit MX-1-862.

An application for an amendment to permit M-241 is required before any departures from the existing authorization. Such an amendment is required to bring the Bob, Kim, and Discovery Zones into the M-241 permit for commercial mining in those areas. The Company has been advancing plans for these amendments over the past months which includes rock characterization, tailings and water management plans, and legal surveys required for applications to expand the area of the mineral lease.

The company has been providing additional information to regulators in regards to permit MX-1-862 which has resulted in a delay to the processing of mineralization from Discovery Zone. The Company expects that this delay will have a significant impact in production and gold sales for July. The Company will provide further information on production scheduling in subsequent releases.

At present, the Company is processing mineralization from the Tel Zone.