Mr. Stephen Kenwood reports

MAJESTIC GOLD CORP. FILES AMENDED TECHNICAL REPORT

Majestic Gold Corp. has filed an amended technical report, titled "Independent Technical Report of Songjiagou Project, Shandong Province, The People's Republic of China," dated Jan. 19, 2016, by SRK Consulting China Ltd.

Changes in the amended report included the following:

• Explanation to capping of high-grade samples at 40 grams per tonne gold;
• Reporting open-pit resources and underground resources by using different cut-off grades;
• Excluding the depletion of historical underground mining in the resource statements and the preliminary economic assessment;
• Including taxation in the economic analysis in the preliminary economic assessment;
• Addition of a qualified person, Peter Fairfield, BEng, FAusIMM, for mining aspects of the technical report, as well as amending the certificates and consents of qualified persons to ensure that at least one qualified person is responsible for each section of the amended report;
• Addition of cautionary language relating to the mineral resource estimate and results of the preliminary economic assessment;
• The amended report includes an updated resource estimate of indicated and inferred resources at Songjiagou, as shown in the attached table;

         
            ORIGINAL RESOURCE ESTIMATE
        (in the report dated Aug. 20, 2013)

                 Global resource

                    Open pit

Indicated                    Inferred
(0.30 g/t Au) cut-off       (0.30 g/t Au) cut-off

28.6 million tonnes          35.3 million tonnes
at 1.38 g/t Au               at 1.43 g/t Au

        Within original mining licence

                    Open pit

Indicated                    Inferred
(0.30 g/t Au) cut-off       (0.30 g/t Au) cut-off

25.9 million tonnes          28.7 million tonnes
at 1.42 g/t Au               at 1.35 g/t Au

                    AMENDED RESOURCE ESTIMATE
              (in the report amended Jan. 19, 2016)

                           Global resource

                   Open pit                                  Underground

Indicated                  Inferred                             Inferred
(0.30 g/t Au) cut-off     (0.30 g/t Au) cut-off    (0.80 g/t Au) cut-off

26.6 million tonnes        23.4 million tonnes        5.6 million tonnes
at 1.40 g/t Au             at 1.45 g/t Au                 at 2.60 g/t Au

                 Within original mining licence

                   Open pit                                  Underground

Indicated                  Inferred                             Inferred
(0.30 g/t Au) cut-off     (0.30 g/t Au) cut-off    (0.80 g/t Au) cut-off

24.1 million tonnes        18 million tonnes          4.9 million tonnes
at 1.44 g/t Au             at 1.29 g/t Au                 at 2.60 g/t Au

Notes:
The resource estimate is categorized as indicated and inferred
as defined by the CIM guidelines for resource reporting. Mineral
resources do not demonstrate economic viability, and there is no
certainty that these mineral resources will be converted into
minable reserves once economic considerations are applied.

• The amended resource estimate accounted for depletion by previous underground mining of an amount of 443,555 tonnes at an average grade of 0.85 gram per tonne gold;
• The amended report designated scenario 1 as a base case for the preliminary economic assessment of the Songjiagou operation; scenario 1 allows for mining of only indicated resources, within the original mining licence, at a rate of up to 7,400 tonnes per day. Results of the base-case analysis, using $1,355 (U.S.) per ounce gold as the long-term price are as follows:
  • Mining inventory -- 17,094,000 tonnes of 1.36 grams per tonne gold;
  • Stripping ratio -- 3.26:1;
  • Mining recovery -- 95 per cent;
  • Mining dilution -- 5 per cent;
  • Smelting recovery -- 93 per cent;
  • After-tax net present value at 10-per-cent discount rate -- $335-million (U.S.);
  • Sensitivity analysis for 20-per-cent reduction in the base-case average gold price ($1,084 (U.S.) per ounce) results in an after-tax net present value of $232-million (U.S.).

Note: A preliminary economic assessment should not be considered to be a prefeasibility or feasibility study, as the economics and technical viability of the project have not been demonstrated at this time. A preliminary economic assessment is preliminary in nature; it includes inferred mineral resources considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves; there is no certainty that the preliminary assessment will be realized.

The company will post updated versions of its corporate presentation and project summary to its website in the near future to match the amended report.

All technical information contained in this news release has been reviewed and approved by Stephen Kenwood, PGeo, who is a director of the company and a qualified person under the definitions established by National Instrument 43-101.

We seek Safe Harbor.