Mr. Douglas Forster reports

NEWMARKET GOLD INTERCEPTS HIGH-GRADE VISIBLE GOLD MINERALIZATION FROM UNDERGROUND DRILLING AT THE HARRIER SOUTH GOLD SYSTEM, FOSTERVILLE GOLD MINE

Newmarket Gold Inc. has released drill results from an additional 17 underground holes, totalling 6,376 metres, at its Harrier South gold system at the Fosterville gold mine, state of Victoria, Australia. Underground resource definition drilling has continued to target downplunge extensions to the Harrier and Osprey gold system to assess the potential of a Harrier reserve expansion. Recent drill results have returned the highest gold grades ever recorded in the Harrier and Osprey gold system, with several intervals containing significant visible gold mineralization. The results reaffirm increasing grade profiles with depth and suggest a strong potential for significant conversion of mineral resources to mineral reserves. Success from continued drilling from this area could also provide increased flexibility for the operation, with the potential to maintain independent mining fronts from the current Phoenix/Lower Phoenix mining area. The Harrier South drilling target area is located approximately 1.2 kilometres south of the Phoenix and Lower Phoenix mineral reserves, directly downplunge from the active Harrier mining area.

Highlights and key drill intercepts at Harrier South gold system, Fosterville gold mine:

• Drilling on the Harrier Base structure has returned significant high-grade mineralization containing visible gold. Key intercepts include 64.8 grams per tonne gold (1) over 4.5 metres (estimated true width (ETW): 4.3 m) in hole UDH1734, 46.22g/t(1) Au over 6.80 m (ETW: 6.59 m) in hole UDH1764 and 10.29 g/t Au(1) over 7.4 m (ETW: 7.18 m) in hole UDH1829.
• Drilling into the Harrier splay structures has returned high-grade results containing visible gold, including 11.99 g/t(1) Au over 3.85 m (ETW: 3.82 m) in hole UDH1765 and 14.53 g/t(1) Au over 2.2 m (ETW: 2.07 m) in hole UDH1680.
• Drilling on the Osprey structure has returned significant results including 8.72 g/t Au over 3.85 m (ETW: 3.45 m) in hole UDH1806 and 11.03 g/t Au over 2.35 m (ETW: 2.11 m) in hole UDH1841.
• New drill results from the Harrier South gold system continue to support an emerging trend of increasing grade profiles at depths below the 4,450 mRL, comparable with the well-documented Lower Phoenix gold grade increase at similar depths.
• The Harrier South gold system has now been defined by drilling over a 425 m strike length across multiple mineralized structures. The company plans to continue drilling for the remainder of 2016 targeting the expansion of the gold system downplunge of indicated mineral resources to facilitate mineral reserve evaluation.

(1) Visible gold present in drill intercept.

Douglas Forster, president and chief executive officer, Newmarket Gold, commented: "We are pleased to report continued positive results from our underground delineation drilling program in the Harrier South gold system at our flagship Fosterville gold mine. In addition to our successful advancement of the Phoenix and Lower Phoenix delineation and expansion drilling programs, we have been able to progressively advance additional high-potential mineral resource targets at Fosterville. The most recent drill results into the Harrier South gold system have delineated a high-grade zone of visible gold mineralization on the Harrier Base structure and reaffirm an increasing grade profile with depth. We intend to continue drilling with two rigs for the remainder of 2016 to further explore for Harrier South mineral reserve expansion opportunities."

Harrier South delineation drill programs

The company has continued to advance its Harrier South underground delineation programs based on the success of phase I drilling (see news release dated June 27, 2016). Drilling continues to test the southern downplunge extensions of the Harrier/Osprey gold system, with 6,376 m of drilling completed in an additional 17 holes. The Harrier South drilling target area is located directly downplunge from the active Harrier mining area and mineral reserves, approximately 1.2 kilometres south of the Phoenix and Lower Phoenix mineral reserves.

Progressive drilling and geological modelling of the Harrier South system have confirmed the presence of 10 mineralized zones (Osprey, Osprey Link, Osprey splays, Osprey hangingwall, Osprey Base, Harrier, Harrier splays, Harrier Base, Harrier hangingwall and Harrier East Dipping) below the 4,500 mRL level, which host significant gold mineralization. Mineralization has developed along a network of reverse thrust faults that transect east-dipping shale and sandstone beds on the eastern limb of an anti-cline axis, which is positioned footwall to the Fosterville fault. Harrier/Osprey mineralization primarily consists of disseminated arsenopyrite and pyrite, although recently significant intercepts of visible gold have been encountered at depth.

Harrier structures

Significant gold mineralization containing visible gold associated with the Harrier Base and Harrier splay structures has been identified in delineation drilling.

Drill results returned on the Harrier Base structure contain significant high-grade intercepts including 64.8 g/t Au(1) over 4.5 m (ETW: 4.3 m) in hole UDH1734, 46.22 g/t Au(1) over 6.8 m (ETW: 6.59 m) in hole UDH1764 and 10.29 g/t Au(1) over 7.4 m (ETW: 7.18 m) in hole UDH1829. The Harrier Base structure exhibits the greatest offset of all of the gold-bearing reverse faults in the Harrier South system. The Harrier Base structure is typically high grade and narrow in width above the 4,350 mRL level but this zone increases in width at depth as defined through recent drill results. Within a zone between 4,800 mN and 4,900 mN and 4,300 mRL to 4,350 mRL, there is now a total of six drill hole intercepts into Harrier Base, with three of those intercepts containing visible gold and all intercepts returning grade-thickness mineralization greater than 30 gram-metres. Recent high-grade results have been recorded at the deepest drilling completed to date and continue to support an increasing grade trend downplunge at depth.

In addition to the Harrier Base mineralization, strong drill results have also been returned on Harrier splay structures, which include significant visible gold-bearing intercepts of 11.99 g/t(1) Au over 3.85 m (ETW: 3.82 m) in hole UDH1765 and 14.53 g/t(1) Au over 2.2 m (ETW: 2.07 m) in hole UDH1680. Harrier splay structures are interpreted as a series of moderately westerly dipping mineralized shorter-range structures that are footwall to the Harrier hangingwall structure and hangingwall to the Harrier Base structure. The UDH1765 drill intercept is positioned immediately hangingwall to the strong results returned on the Harrier Base structure at approximately the 4,300 mRL level. The UDH1680 intercept is positioned immediately footwall to the Harrier hangingwall structure at approximately the 4,450 mRL level. Both intercepts contain visible gold. Drilling will continue to further define the scale and continuity of these structures. It is anticipated that some of these mineralized structures will be amenable to mining given the tenor outlined to date and their close proximity to larger-scale mineralized faults.

Osprey structures

Recent definition drilling into the Osprey mineralized structures continues to reaffirm continuity of geological structure. The most significant recent intercepts include 8.72 g/t Au over 3.85 m (ETW: 3.45 m) in hole UDH1806 and 11.03 g/t Au over 2.35 m (ETW: 2.11 m) in hole UDH1841 on the Osprey structure, 7.55 g/t Au over 2.1 m (ETW: 2.06 m) in hole UDH1673 and 8.27 g/t Au over 1.6 m (ETW: 1.59 m) in hole UDH1730A on the Osprey hangingwall structure, and 8.54 g/t Au over 1.65 m (ETW: 1.58 m) in hole UDH1765 on the Osprey Link structure.

A number of intermediate lower-grade and narrower-width drill intercepts have demonstrated the variable nature of mineralization along the Osprey structures. However, the strength of localized high-grade and width concentrations of mineralization provides encouragement for future reserve conversion in this zone.

Qualified person

Troy Fuller, MAIG, geology manager, Fosterville gold mine, Newmarket Gold, is a qualified person as such term is defined in National Instrument 43-101, and has reviewed and approved the technical information and data included in this press release.

The company is based on a strong foundation of quality gold production from its three Australian mines, producing over 220,000 ounces of gold annually.

We seek Safe Harbor.