PDX Resources : Pilot Gold Announces C$12.5 Million Bought Deal Financing

VANCOUVER, B.C. - Pilot Gold Inc. (PLG - TSX) ('Pilot Gold' or the 'Company') is pleased to announce that it has entered into an agreement with a syndicate of underwriters co-led by RBC Capital Markets and National Bank Financial Inc. (collectively, the 'Underwriters') pursuant to which the Underwriters have agreed to purchase, on a bought deal basis, 20,900,000 units of the Company (the 'Units') at a price of C$0.60 per Unit (the 'Issue Price') for gross proceeds to the Company of C$12,540,000 (the 'Offering'). Each Unit will consist of one common share of Pilot Gold (each, a 'Common Share') and one half of one common share purchase warrant (each whole common share purchase warrant, a 'Warrant'). Each Warrant will entitle the holder to acquire one common share of Pilot Gold at a price of C$0.90 at any time prior to the date which is 2.5 years following completion of the Offering.

In addition, Pilot Gold has granted the Underwriters an option (the 'Underwriters' Option'), exercisable at any time, in whole or in part, until the date that is 30 days following the closing of the financing, to purchase up to an additional 15% of the number of Units solely to cover over-allotments, if any, and for market stabilization purposes. The Underwriters can elect to exercise the option for Units, common shares only, or warrants only, or any combination thereof.

The net proceeds of the Offering will be used to fund exploration and development of Pilot Gold's southwest United States gold and precious metal exploration portfolio, focused on the Goldstrike project in Utah, as well as the Black Pine project in Idaho, and the Kinsley deposit in Nevada and for general working capital purposes.

Pilot Gold intends to file with the securities commissions and other similar regulatory authorities in the provinces of Canada, other than Quebec, a preliminary short form prospectus relating to the issuance of the Units by November 2, 2016.

The Offering is scheduled to close on or about November 16, 2016 and is subject to a number of conditions including, but not limited to, receipt of all necessary approvals including the approval of the Toronto Stock Exchange and applicable securities regulatory authorities.

THIS NEWS RELEASE IS NOT AN OFFER OF SECURITIES FOR SALE AND IS NOT AN OFFER TO SELL OR SOLICITATION OF AN OFFER TO BUY ANY SECURITIES OF PILOT GOLD, NOR SHALL IT FORM THE BASIS OF, OR BE RELIED UPON IN CONNECTION WITH ANY CONTRACT FOR PURCHASE OR SUBSCRIPTION. THE COMMON SHARES OF PILOT GOLD WILL ONLY BE OFFERED IN ALL PROVINCES OF CANADA BY MEANS OF THE PROSPECTUS REFERRED TO ABOVE. THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE 'U.S. SECURITIES ACT'), OR APPLICABLE STATE SECURITIES LAWS, AND THESE SECURITIES MAY NOT BE OFFERED OR SOLD TO, OR FOR THE ACCOUNT OR BENEFIT OF, PERSONS IN THE UNITED STATES OR 'U.S. PERSONS' (AS SUCH TERM IS DEFINED IN REGULATION S PROMULGATED UNDER THE U.S. SECURITIES ACT), ABSENT REGISTRATION UNDER THE U.S. SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS OR AN EXEMPTION FROM REGISTRATION THEREUNDER.

ABOUT PILOT GOLD

Pilot Gold is led by a proven technical and capital markets team that continues to discover and define high-quality assets. Our core projects are Goldstrike in Utah, Mineral Gulch in Idaho and Kinsley Mountain in Nevada. The Company also holds important interests in two Turkish assets, Halilaga and TV Tower, and has a pipeline of Western US projects characterized by large land positions and district-wide potential that can meet our growth needs for years to come.

For more information, visit www.pilotgold.com or contact:
John Wenger, Chief Financial Officer
Phone: 604-632-4677 or Toll Free 1-877-632-4677
info@pilotgold.com