March 4, 2013


Vancouver, B.C. - Bralorne Gold Mines Ltd. (BPM: TSX.V)("Bralorne") is pleased to announce the following from President Dr. Mathew Ball.

On behalf of the Board, I would like to report the considerable progress Bralorne has made in implementing its development strategy. The main objectives for 2012 were to access and prepare the BK3 zone for mining, and to complete mining of the BK-800 zone. These objectives were achieved with excellent results, and improvements were achieved in mine productivity and mill throughput. Exploration drilling also continued to advance the property. All in all, 2012 was a good year thanks to the dedication of the Bralorne team.

Transparency and a Review of Operations

I'd like to update our shareholders on where we've been, where the company is now and where we're going. I also want to clarify how we account for our gold sales in both doré and concentrate form. We frequently receive questions related to the reporting of revenues, and I want to ensure our shareholders are clear on how we record and manage these funds.

Since our Bonanza Discovery of 2006

Looking back, Bralorne has made huge progress since that very exciting "Bonanza" discovery nearly seven years ago. It was July of 2006 when surface drilling in the unexplored gap between the Bralorne and King mines hit 11.78 ounces of gold per ton over 1.1 feet and another intersection of 7.20 ounces of gold per ton over 1.2 feet. These were the kinds of high-grade structures typical of Bralorne's glory days, and we realized we had encountered a previously unknown zone that held significant potential for the future. That initial discovery---which became the BK Zone---led to numerous other high-grade intersections in both drilling and underground development. This culminated in 2012 with a Preliminary Economic Analysis (PEA) and a new NI 43-101 compliant resource statement. The PEA recommends an $18 million program of underground development and drilling to delineate enough resources for an increase in mill throughput to 250tpd (tons per day).

Getting to 250 tpd

Today, material from the veins of the BK Zone is feeding the revamped Bralorne mill in our pre-production development phase. Since this began, we have consistently improved the operation and located new gold resources for the future. Processing began at around 85 tpd in 2011, and today we're operating at over 100 tpd. Our plan from hereon is to increase mill throughput in stages. The goal for 2014 is 160 tpd, which will involve installation of a new re-grind mill. The next stage will be to increase to 250 tpd. To reach that level, we plan to develop a number of resource areas and make significant infrastructure improvements. We will also need to locate new gold resources. Our goal is to reach the 250 tpd level in 2016.

Gold Sales and Gold Inventory Accounting

Bralorne is considered an exploration stage company that earns incidental revenue through gold sales. The incidental revenue earned on gold sales is used to fund the Company's operations. Since companies in the exploration stage are prohibited to disclose incidental revenue earned as a "revenue" line item, incidental revenue is netted against exploration expenditures incurred, thus reducing the overall balance within the "exploration and evaluation assets" line item on the financial statements. In the fourth quarter of FY2012, Bralorne earned incidental revenue of approximately $3,048,630 which has been offset against exploration and evaluation assets. Companies in the exploration stage are also prohibited to disclose the fair value of unsold gold inventory in the financial statements. We presently have approximately 806 ounces in gold bullion and an estimated 902 ounces within our floatation concentrate. The Company will only be able to disclose gold sales earned as "revenue", and the value of unsold inventory as "inventory" upon declaring commercial production. Bralorne is expected to achieve commercial production once the mine operates consistently at a targeted 250 tpd capacity.

Growth Without Dilution

The year 2012 had many challenges but these were met by our dedicated team. The Bralorne property asset was advanced during the year despite weak capital markets, with no share dilution and the Company remained debt free. Incidental revenue on gold sales provides an effective means of funding operations without diluting shareholder value. One of our key operating strategies at Bralorne has been to minimize shareholder dilution. We presently have only 28.5 million shares outstanding, which is a remarkable achievement for a company at our level of development. Funding the next stage of expansion, however, is expected to require about $18 million in capital expenditures. Some of this money may come from equity sales, but we are focusing more on non-dilutive alternatives. One possibility is to secure a long-term contract for concentrate sales.

Looking Ahead

Looking ahead in 2013, we will remain focused on two key goals: 1) improving and expanding our mill throughput and, 2) locating additional resources through ongoing exploration. We have an outstanding crew at the Bralorne Mine, and I'm extremely pleased with their diligence in making the operation more efficient, safe and productive.

We are also confident that the unexplored areas between the historic mines have much more gold waiting to be discovered. There is an old saying that "the best place to look for gold is in the shadow of a head frame". Over four million ounces of gold were produced from several shafts on the Bralorne property, making it an excellent place to explore with potential to develop a major new gold mine.

I look forward to bringing more good news throughout the coming year.

"Dr. Mathew Ball"
Dr. Mathew Ball, President