Kaminak Announces $21 Million, 2015 Coffee Project Feasibility Budget; On Track for Completion Early Q1 201610 minutes ago by Marketwire Canada

Kaminak Gold Corporation (TSX VENTURE:KAM) announces that the Company's Board of Directors has appproved a $21 million, 2015 feasibility study budget and workplan for Coffee, Kaminak's flagship, development track, gold project located 130 km south of Dawson City, Yukon. A preliminary economic assessment ("PEA") completed in 2014 indicated that Coffee represents a robust, high-margin, rapid pay back, 11-year life open pit mining opportunity using a gold-price of US$1250/oz and a CDN/US exchange rate of $0.95, generating a pre-tax NPV@ 5% of $522 million and a pre-tax IRR of 33%.

Eira Thomas, CEO commented: "The Coffee feasibility study is more than 50% complete and remains on track for completion in early 2016. As we move forward into the engineering phase of the study, we are pleased to have assembled a strong, diverse team of leading industry professionals led by JDS Energy and Mining. Further, Kaminak is pleased to announce that following the $21 million bought deal financing announced last month the study is now fully funded."

Kaminak initiated feasibility study work at Coffee in Q3 2014 and before year end had completed a $15.5 million work program consisting of infill drilling at Latte, Double Double, Kona, and select areas of Supremo as well as site geotechnical studies and environmental baseline work. Total feasibility study costs, including forecasted expenditures of $21 million for 2015, are now estimated at approximately $36.5 million, up from original estimates of $30 million. The increase in overall costs relate in part to scope changes, but also include revised estimates based upon finalization of third party consulting contracts. Moreover, these costs include the completion of several trade off studies that have the potential to enhance overall project economics as reported in the PEA. These studies include:

--  An investigation of crushing to a coarser size and possibly placing run
    of mine material directly to the leach pads: The PEA assumed three
    stages of crushing to 1/2 inch; however, preliminary results from
    ongoing metallurgical testwork at Coffee indicate that gold recoveries
    from oxide mineralization may be relatively insensitive to size and
    could have the potential to support the elimination of one or more
    stages of crushing in the final mine plan.
--  The potential for adding gold from the Upper Transition Zone into the
    final mine plan:  The PEA primarily targeted approximately 2.1 million
    ounces of oxide gold mineralization, based on available metallurgical
    testwork from 2013. Subsequent and ongoing metallurgical testwork
    targeting Upper Transitional mineralization may help to qualify
    additional ounces for inclusion in the feasibility study.
--  An alternate heap leach pad design and location: The PEA contemplates a
    60 million tonne, valley fill heap leach facility, to be constructed
    over 22 months at an initial cost of $43 million. Ongoing review has
    identified a second potential heap leach site that has the potential to
    both reduce costs and shorten the construction timeline. A detailed site
    investigation, including geotechnical analysis will be undertaken before
    the end of Q2, 2015.

Kaminak further announces that it has awarded the feasibility study contract to JDS Energy and Mining, established northern Canadian mine builders with direct Yukon experience. Additional contributions will be from third party consultants selected in consultation with Kaminak for their expertise in number of key areas such as heap leach design, geotechnical and geomechanical analysis as well as hydrology and hydrogeology.

The feasibility study will continue to benefit from the oversight of Fred Lightner, P.E., Kaminak's Director of Mining and will include contributions from:

--  SRK (Lead: Michael Levy, MSc, P.E., P.G.) responsible for geotechnical
    and geomechanical evaluations, including pit wall stability and waste
    rock storage facilities.
--  The Mines Group (Lead: Anthony Crews, B.S. Civil, P.E.) will be
    undertaking the heap leach facility engineering, in collaboration with
    RRD International (Lead: Mark Smith, P.E., G.E., D.GE, S.E.).
--  Multi-disciplinary environmental baseline team of independent
    consultants, the majority of which are Yukon based Companies.

The full year budget for 2015 is approximately $30 million with the feasibility study and permitting related work accounting for close to 70% (approx. $21 million) and 12% (approx. $3.6 million), respectively. The balance of the budget has been allocated to exploration, marketing and G&A. Exploration plans for 2015 remain modest and flexible and include continued work at Kona North with the aim of defining resources for inclusion in the final feasibility study as well as a continued evaluation of top priority exploration targets in the vicinity of the main resource. The Coffee camp is now fully operational for the 2015 season. Drilling at Supremo commenced with four drills currently operating, which are completing infill and condemnation drilling programs. Kaminak is anticipating strong news-flow over the next two quarters including:

--  Infill drilling results from Supremo
--  Metallurgical test-work to establish gold recoveries from both coarser
    crush oxide mineralization and upper transitional mineralization
--   Additional exploration drilling at Kona North, a 2014 discovery which
    returned 3.55 grams over 28 m in its discovery drill hole (see press
    release of September 2nd, 2014)

QA / QC

Kaminak's disclosure of a technical or scientific nature in this press release has been reviewed and approved by Tim Smith, P.Geo., Vice President Exploration of Kaminak Gold Corporation, who serves as a Qualified Person under the definition of National Instrument 43-101. Quality assurance and quality control procedures include the systematic insertion of blanks and standards into the drill sample string. Samples are placed in sealed bags and shipped directly to the ALS Minerals preparatory laboratory in Whitehorse prior to gold fire assay.

On behalf of the Board of Directors of Kaminak

Eira Thomas, President and CEO