Mr. Douglas Forster reports

NEWMARKET GOLD REPORTS STRONG SECOND QUARTER RESULTS; RECORD LOW OPERATING CASH COSTS OF $681 PER OZ AND RECORD FIRST-HALF PRODUCTION OF 115,674 OZ

Newmarket Gold Inc. has released its financial results for the three and six months ended June 30, 2015. Full financial statements and management's discussion and analysis documents can be found at SEDAR and the company's website (all amounts are in U.S. dollars).

Second quarter highlights:

• Consolidated production of 55,998 ounces, up 3.7 per cent versus Q2 2014 and eighth consecutive quarter of gold production above 53,000 ounces. First half (H1) 2015 consolidated production was a record 115,674 ounces;
• Record low operating cash costs of $681 per ounce sold, a 29.4-per-cent decrease versus Q2 2014, below full year 2015 guidance of $780 to $860 per ounce sold;
• All-in sustaining cash costs (AISC) per ounce sold of $1,037, a 21.2-per-cent decrease versus Q2 2014, with an average realized gold price of $1,196 in Q2 2015;
• Revenue of $66.0-million based on 55,154 ounces sold;
• Increased operating cash flow to $27.1-million, up 4.9 per cent from Q2 2014;
• Net income of $12.1-million, or 10-cent earnings per share, versus $3.9-million, or one-cent earnings per share in Q2 2014. H1 2015 net income of $27.8-million, or 24-cent earnings per share;
• Cash and gold bullion balance of $38.8-million and working capital of $25.1-million;
• Completed merger between Newmarket Gold and Crocodile Gold establishing a new, sustainable 200,000-plus-ounce gold producer. An exceptional operations team combined with a senior management team and board of directors, with a proven record of superior value creation and ability to leverage deep capital markets and mining sector relationships, will continue to execute on a gold asset consolidation strategy creating significant shareholder value.

Douglas Forster, president and chief executive officer, Newmarket Gold, commented: "During the second quarter we announced a strategic combination between Newmarket and Crocodile Gold. The merger closed successfully on July 10, 2015, establishing a new 200,000-plus-ounce-per-year gold producer with an exceptional operations and senior management team, and board of directors. With our newly combined team and proven track record of operational excellence and superior value creation, we continue to focus on sustaining current gold production levels and maintaining cost profiles. Consolidated gold production in the second quarter was 55,998 ounces, up 3.7 per cent year over year, representing two years of quarterly production above 53,000 ounces. In the first six months of 2015, we delivered a record 115,674 ounces of consolidated gold production, positioning us well to meet the top end of our full year 2015 production outlook of 205,000 to 220,000 ounces. Despite a challenging gold price environment, we achieved solid revenue and continued to meet our cost reduction and productivity targets resulting in record low operating cash costs of $681 per ounce, increased profitability and positive free cash flow. We remain confident in our ability to deliver on our 2015 cash cost and AISC guidance of $780 to $860 per ounce and $1,020 to $1,100 per ounce, respectively.

"We entered second half 2015 with a solid cash and gold bullion balance of $38.8-million and an increased working capital level of $25.1-million. The positive free cash flow generated during the quarter enabled us to turn on several growth exploration programs across the sites that has resulted in significant discoveries and many resource building opportunities. At Fosterville, we have intersected extremely high-grade gold mineralization containing visible gold at the Eagle Fault discovery in the Lower Phoenix system. Drill results from the Eagle Fault discovery include 386 grams per tonne gold over 9.15 metres (estimate true width 3.35 metres) and 268 g/t gold over 7.85 metres (estimated true width 2.77 metres). These drill results represent the highest grades ever recorded at Fosterville and confirm significant gold mineralization at depth outside of previously reported indicated mineral resources. Additionally, we have discovered the Aurora B East flank target at Stawell and the Western lodes target at Cosmo.

"Looking ahead, we will continue to advance on our growth exploration programs, while monitoring movements in the gold price, to ensure we achieve our top priority of resource growth to support future sustainable production and continued positive cash flow generation. We also look forward to executing on our growth strategy through the acquisition of new opportunities that will be accretive to our business with the goal of creating significant value for shareholders."

                 SECOND QUARTER 2015 FINANCIAL RESULTS 

                            Q2 2015      Q2 2014     YTD 2015      YTD 2014 

Revenue                 $66,044,377  $69,231,729 $138,941,212  $139,619,365 
Cost of operations,                                                         
including depletion                                                        
and depreciation        (46,526,035) (61,103,354) (99,661,175) (124,193,323)
Mine operating income    19,518,342    8,128,375   39,280,037    15,426,042 
Net income               12,071,914    3,934,331   27,774,834       608,594 
Net income per share                                                        
($/share) basic                0.10         0.03         0.24          0.01 
Net income per share                                                        
($/share) diluted              0.10         0.03         0.23          0.01 
Cash generated from                                                         
operating activities     27,071,458   18,184,443   54,557,811    30,643,907 
Capital investment in                                                       
mine development,                                                          
property, plant and                                                        
equipment                17,156,990   16,978,369   30,617,360    33,811,057 
Average realized gold                                                       
price                         1,196        1,291        1,190         1,289 
Average quoted gold                                                         
price                         1,192        1,289        1,206         1,291 
Operating cash costs                                                        
per ounce sold                  681          965          682           968 
All-in sustaining cash                                                      
costs per ounce sold          1,037        1,316          985         1,311

Three months ended June 30, 2015

Consolidated gold production in Q2 2015 of 55,998 ounces increased 3.7 per cent compared with Q2 2014, also representing two full years of quarterly production above 53,000 ounces. Average consolidated mill grade of 3.31 g/t increased 8.5 per cent compared with prior year, in addition to a strong increase in consolidated mill recovery to 88.0 per cent. Total gold sold increased 2.9 per cent year over year to 55,154 ounces.

For the quarter ended June 30, 2015, consolidated revenues were $66.0-million, down 4.6 per cent compared with $69.2-million in the corresponding quarter of 2014. The decline was attributable to a 7.4-per-cent drop in the average realized gold price per ounce to $1,196, down from $1,291 in Q2 2014, which more than offset the increase in gold sold over the corresponding period in 2014.

Operating expenses, including royalties, decreased 27.3 per cent, resulting in record low operating cash costs of $681 per ounce sold compared with $965 in the prior year. The decrease in costs is attributable to a focus on cost management across the business and productivity initiatives. In particular, lower expenses at Cosmo, greater productivity at Fosterville, lower fuel costs, general cost reduction initiatives including, hiring freezes and supply tender processes, all contributed to record low operating cash costs. Additionally, a 16.6-per-cent year-over-year weakening of the average Australian-dollar exchange rate further contributed to the decline. As a result, mine operating income improved 140 per cent year over year to $19.5-million.

Net income for the quarter ended June 30, 2015, was $12.1-million, or 10 cents per share, compared with $3.9-million, or one cent per share, in Q2 2014. Per-share amounts are presented after giving effect to the share exchange ratio following the completion of the merger between Newmarket Gold and Crocodile Gold.

Operating cash flow for the quarter ended June 30, 2015, was $27.1-million, a 48.9-per-cent improvement compared with the Q2 2014 period driven by strong gold sales and a significant reduction in operating costs which offset the impact of a lower gold price environment.

Mine development in the second quarter was $12.8-million. Development focused largely at Fosterville and Cosmo, with an additional $4.4-million invested in plant and equipment. Capital expenditures were relatively comparable with the corresponding quarter of 2014, due to the timing of certain projects and capital development, and the weaker Australian dollar.

Due to a significant decrease in operating cash costs, increasing gold production, driven by strong grades and recoveries, and a weakened Australian dollar, all-in sustaining cash costs improved to $1,037 per ounce sold from $1,316 in Q2 2014, a 21.2-per-cent decrease.

Financial position

For the period ended June 30, 2015, the cash and gold bullion balance (at fair market value) was $38.8-million. In the first six months of 2015, working capital increased significantly to $25.1-million, compared with $12.6-million at Dec. 31, 2014. This was a notable achievement as the company was able to make a one-time cash payment of $16.7-million ($20-million (Canadian)), and grant a royalty over Fosterville and Stawell mines to AuRico Gold Inc. to terminate a net free cash flow sharing arrangement over Fosterville and Stawell, without the addition of debt.

As at June 30, 2015, the unaudited pro forma cash and gold bullion balance was $39.4-million, which included the balances for Newmarket and Crocodile Gold. The pro forma balance is before the net proceeds from the subscription receipt financing and most transaction costs associated with the merger between Newmarket Gold and Crocodile Gold. The pro forma unaudited working capital was approximately $24.0-million at June 30, 2015.

Foreign exchange

The significant drop in the Australian-dollar exchange rate has markedly increased the gold price in Australian-dollar terms (the functional currency of the company's current operations) while having the effect of lowering cash costs in U.S.-dollar terms. The Australian dollar closed at 76.93 cents on June 30, 2015, down 5.8 per cent from year-end. Consequently, Australian-dollar-denominated gold has traded above $1,500 (Australian) per ounce consistently since mid-January, trading above $1,600 (Australian) for a period of time. The average quarterly exchange rate has dropped 16.6 per cent compared with Q2 2014, which accounted for a portion of the decrease of operating and all-in sustaining cash costs per ounce sold, complementing the reduction in local currency costs achieved through cost reduction and productivity initiatives.

Exploration update

For the quarter ended June 30, 2015, $2.7-million was deployed on various exploration drill programs advancing several strategic near-term growth projects across all sites. These drill programs resulted in significant discoveries and resource building opportunities, including the high-grade Eagle fault discovery at Fosterville, the Western lodes target at Cosmo and the Aurora B East flank discovery at Stawell.

Additionally, a phased feasibility study on the 100-per-cent-owned Maud Creek gold deposit commenced on the first phase being the completion of a preliminary economic assessment, which is expected to be completed in early 2016.

                    SECOND QUARTER 2015 OPERATIONAL RESULTS

                                       Q2 2015   Q2 2014  YTD 2015  YTD 2014
Fosterville gold mine
Ore milled (t)                         173,323   202,927   348,650   423,306
Grade (g/t Au)                            5.92      3.95      5.84      4.14
Recovery (%)                              89.0      85.7      89.1      84.9
Gold oz produced                        29,648    22,198    58,783    47,984
Gold oz sold                            29,139    21,509    60,371    47,318
Cosmo gold mine
Ore milled (t)                         193,084   213,815   383,390   444,630
Grade (g/t Au)                            2.97      3.69      3.33      3.23
Recovery (%)                              92.7      86.3      91.9      86.0
Gold oz produced                        17,073    21,845    37,685    39,686
Gold oz sold                            16,522    21,977    36,721    41,393
Stawell gold mines
Ore milled (t)                         221,974   234,363   442,061   461,990
Grade (g/t Au)                            1.57      1.69      1.66      1.70
Recovery (%)                              83.1      78.8      81.7      79.1
Gold oz produced                         9,277     9,981    19,207    19,937
Gold oz sold                             9,493    10,126    19,356    19,636

Production and cash cost guidance for 2015

As previously announced, see Crocodile Gold's press release dated Jan. 12, 2015, Newmarket reaffirmed full year production and cash cost guidance for fiscal 2015 as shown in the table.

                                 2015 GUIDANCE

                                                                Consolidated
                         Fosterville        Cosmo     Stawell           2015

Gold production              100,000-      75,000-     Approx.       205,000-
(ounces)                     105,000       85,000      30,000        220,000
Operational cash                                         $945-               
costs per ounce            $670-$750    $850-$930      $1,025      $780-$860
AISC per ounce                                                 $1,020-$1,100

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