Plan Expand Production At Bralorne Gold Mine

VANCOUVER, BC - Bralorne Gold Mines Ltd. reported positive results of a Preliminary Economic Assessment of its Bralorne project located near Gold Bridge, British Columbia, where the Company is exploring and developing its gold mining operation.

Beacon Hill Consultants (1988) Ltd. has completed a National Instrument 43-101 Preliminary Economic Assessment (PEA) of the current Bralorne operation and devised a plan to expand production of the mine from the present 85tpd to 250tpd.

Since 2007, the Company has concentrated on exploration, drifting, raising, rehabilitation and purchase of equipment. These exploration activities continued to locate mineralized zones and development was done to define an inventory of measured and indicated resources on which a mine plan can be formulated. As a result measured and indicated resources have been delineated totaling 154,750 tonnes grading 9.11 g/tAu (0.266 ozAu/t) and in addition 246,835 tonnes grading 8.78 gAu/t (0.256 ozAu/t) classified as inferred resources.

The Bralorne mine was placed back into operation in April 2011 and has been operating at a nominal rate of 85 tpd since that time on which the PEA evaluation has been completed using a mine life of 4.3 years. Based on present known measured and indicated resources the mine has a life of some five to six years and potentially 14 years if inferred resources are included. Based on this plan the PEA shows that the Company''s present operations is estimated to have a positive net present value discounted at 5% of $6.4 million using gold prices of US$1650/oz for 2012 and US$1500/oz for succeeding years.

In order to assess the potential of expanding operations a plan was developed to increase production from 85 tpd to 250 tpd operation. This plan will require additional resources to be delineated above that required for the current operations from exploration activities below the 800 level down to 1000 level. In the economic analysis, a resource equivalent to that currently described above the 800 level is assumed to be available from 800 level to 1000 level. Preliminary estimates have been made for both the capital and operating costs based upon this plan and an economic analysis completed for the increased 250tpd scenario. This case is designated as a postulated due to the fact that sufficient resources have not yet been delineated and the plan is speculative in nature.

The postulated case will be subject to an initial capital expenditure of $17.6 million and preliminary schedules indicate that an increase in production could be achieved in year 2015. The overall production schedule covers a 10 year mine life. The mining grade used reflects the average of that produced to date since operations commenced in 2011. Ongoing capital has been estimated at $10.6 million with average operating costs $223.77/ton mined, equivalent to $932.28/oz gold. The PEA economic analysis for this case shows that the Company is expected to have a positive net present value discounted at 5% of $29.8 million with an IRR of 50.43% based on gold prices of US$1650/oz for 2012 and US$1500/oz for succeeding years.

It is concluded that if the mine is further developed and a mining rate of 250tpd is achieved at a mining grade equal or better than presently processed, considerable improvements will occur to the economic viability of the project.

"This analysis shows that the present operation is economical and validates the recent efforts of the Company to build a new gold mine; it also indicates the upside potential economic benefit of expanding the operation. Although sufficient resources for expansion have not been fully defined yet, the Company strongly believes that on-going exploration and development at the property will produce the required results. The Company is also pursuing ways to improve the current operation recovery and throughput with minimal capital infusion through minor modifications in the mill," commented Company President and COO, Dr. Matt Ball.

The company's address is Suite 900, 570 Granville Street, Vancouver, BC V6C 3P1, 604.682.3701, fax: 604.682.3600.