Mr. Nikolai Zelenski of Nord Gold reports

NORDGOLD INCREASES ITS STAKE IN NORTHQUEST TO 52.3%

Nord Gold NV, an internationally diversified low-cost gold producer, has acquired 17.5 million new common shares of Northquest Ltd. upon the exercise of warrants that had been issued to Nord Gold in connection with its previous investments in Northquest.

Northquest owns the Pistol Bay gold project, a high-grade exploration project located in Nunavut Territory, Northern Canada, on the west coast of Hudson Bay. Nord Gold paid an aggregate of $5,016,666.66 (approximately $3.8-million (U.S.)) in connection with exercising the warrants.

As a result of the transaction, Nord Gold holds an aggregate of 55,574,999 shares and has therefore increased its stake in Northquest from 42.9 per cent to 52.3 per cent on a non-diluted basis. In June, 2014, Northquest issued Nord Gold 1,388,889 warrants with an exercise price of 24 cents per warrant; in July, 2014, Northquest issued Nord Gold five million warrants with an exercise price of 27 cents per warrant; and in June, 2015, Northquest issued Nord Gold 11,111,111 warrants with an exercise price of 30 cents per warrant.

Nord Gold has now exercised all of its warrants.

Nikolai Zelenski, chief executive officer of Nord Gold, said: "After positive results of the exploration program at Pistol Bay in 2015, which confirmed its potential of being a high-quality deposit of substantial scale with high-grade ore, a moderate stripping ratio and excellent metallurgy, we are pleased to provide continuing support to the project development with this additional investment.

"As part of Nord Gold's strategy to achieve long-term sustainable growth, we continue to pursue a number of exciting exploration opportunities and it is particularly pleasing to see success in the Pistol Bay investment. We are also looking forward to the continuing progress at the 3.8-million-ounce Montagne d'Or gold project in French Guiana with a feasibility study expected to conclude in the fourth quarter of 2016. Nord Gold will continue to invest strategically in its organic growth pipeline and where we see opportunities to acquire premium-quality reserves and resources."

Nord Gold acquired the shares for investment purposes. Nord Gold may increase or decrease its beneficial ownership, control or direction over shares depending on the evolution of Northquest's business, financial condition, the market for Northquest's securities, general economic conditions and other factors.

We seek Safe Harbor.