Mr. Stephen Kenwood reports

MAJESTIC GOLD CORP. REPORTS 2017 ANNUAL RESULTS

Majestic Gold Corp. has released its financial and operational results for the year ended Sept. 30, 2017. The following financial results are expressed in U.S. dollars unless otherwise stated.

This release should be read in conjunction with the company's audited consolidated financial statements for the years ended Sept. 30, 2017, and 2016 and associated management's discussion and analysis, which are available on SEDAR and on the company's website.

Overview:

• Gold production from the Songjiagou gold mine was 25,363 ounces for 2017 (2016: 22,975), an over 10-per-cent increase in production over the prior year.
• Gold produced for the fourth quarter of 2017 was 6,733 ounces, compared with 5,258 ounces produced for the 2016 comparative quarter.
• Gross profit for 2017 was $9,644,581 compared with gross profit of $1,741,197 for 2016.
• Gold sales revenue was $29.1-million for 2017 from the sale of 22,973 ounces at an average realized gold price of $1,269 per ounce, compared with gold sales revenue of $27.5-million from the sale of 22,924 ounces at an average realized gold price of $1,198 per ounce for 2016.
• Net income for 2017 was $3,677,352 compared with a net loss of $3,277,816 for 2016.
• Majestic's adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was $10,053,576 for 2017 (2016: $1,851,687).
• For 2017, cash costs were $723 per ounce (2016: $1,014), and all-in sustaining costs (AISC) were $850 per ounce (2016: $1,174).
• Tonnes milled for 2017 were 1,578,261 tonnes with an average head grade of 0.55 gram per tonne and a 93-per-cent recovery rate, compared with 1,619,876 tonnes milled, with an average head grade of 0.49 gram per tonne and a 90-per-cent recovery rate for 2016.
• General and administrative (G&A) expenses were $3,054,209 for 2017 (2016: $3,036,630).
• The company continues its underground development on the Songjiagou North property and has progressed in developing 1,000 metres of the 2,075-metre ramp. The company anticipates the development to be completed at Songjiagou North in late fiscal 2018 to early fiscal 2019.
• On Jan. 25, 2018, the company announced that it is proposing to sell by way of a non-brokered private placement up to 66.7 million common shares at a price of 15 cents per common share for gross proceeds of up to $10-million.

                                        FINANCIAL INFORMATION
  
                                                          Year ended Sept. 30, 2017        Year ended Sept. 30, 2016
Operating data
Gold produced (oz)                                                           25,363                           22,975
Gold realized net of smelting fees (oz)                                      24,206                           21,644
Gold sold (oz)                                                               22,973                           22,924
Average realized gold price ($/oz sold)                                      $1,269                           $1,198
Total cash costs ($/oz sold) (1)                                                723                            1,014
Total production costs ($/oz sold) (1)                                          863                            1,137
All-in sustaining costs per ounce ($/oz sold) (1)                               850                            1,174

Financial data
Total revenues                                                          $29,478,603                      $27,801,966
Gross profit (2)                                                          9,664,581                        1,741,197
Adjusted EBITDA (1)                                                      10,053,576                        1,851,687
Net income (loss)                                                         3,677,352                       (3,277,816)
Net income (loss) attributable to shareholders                            2,225,753                       (2,914,351)
Basic and diluted income (loss) per share                                      0.00                            (0.00)
                                                                        -----------                     -----------

(1) See additional financial measures in the company's management's discussion and analysis on pages 17 to 19.
(2) Gross profit represents total revenues, net of cost of goods sold.

  
                                     PRODUCTION RESULTS

                                                Year ended Sept. 30, 2017      Year ended Sept. 30, 2016
Production data
Tonnes mined                                                    1,509,566                      1,662,583
Tonnes milled                                                   1,578,261                      1,619,876
Head grade (g/t)                                                     0.55                           0.49
Mill recovery                                                          93%                            90%
Gold produced (oz)                                                 25,363                         22,975
Gold realized, net of smelting fees (oz)                           24,206                         21,644
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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.

About Majestic Gold Corp.

Currently focused solely in China, Majestic Gold is a company based in British Columbia and engaged in commercial gold production at the Songjiagou gold mine in eastern Shandong province, China.

We seek Safe Harbor.