Mr. Douglas Forster reports

NEWMARKET GOLD ANNOUNCES FURTHER HIGH-GRADE DRILL RESULTS AND RECORD MONTHLY PRODUCTION AT THE FOSTERVILLE GOLD MINE

Newmarket Gold Inc. has released further positive drill results and record monthly production at the Fosterville gold mine, state of Victoria, Australia. Underground resource definition drilling has continued to target downplunge extensions to the Lower Phoenix and Harrier South gold systems to assess the potential of mineral reserve expansion. Recent drill results from nine underground holes totalling 3,637 metres have demonstrated the continuity of exceptional high-grade visible gold mineralization on both the newly discovered west-dipping Lower Phoenix footwall and Eagle structures in the Lower Phoenix gold system.

An additional drilling program consisting of seven holes totalling 2,893 m in the Harrier South gold system has reaffirmed the mineral reserve conversion potential of this area, returning the highest Harrier gold grades ever recorded. The company is also pleased to report a further three surfaced-based drill holes totalling 2,591 m from growth drilling exploration programs targeting the Lower Phoenix gold system. Recent drill results continue to support the potential to expand Fosterville's mineral resources and reserves and confirm continuity of mineralization upplunge (north) and downplunge (south) on the Lower Phoenix gold system and downplunge on the Harrier South gold system. Additionally, the company is pleased to note that Fosterville achieved record production for the month of October, totalling 15,116 ounces of gold at a record mill grade of 8.18 grams per tonne gold and record recovery of 92.3 per cent.

Highlight drill intercepts from underground near-mine drilling at Fosterville gold mine

• Drilling into the newly discovered west-dipping Lower Phoenix footwall structure intersected significant high-grade gold mineralization including 550 g/t Au(1) over 3.75 m (estimated true width: 3.5 m) in hole UDH1278 (including 4,592 g/t Au(1) over 0.4 m (ETW: 0.3 m)) and 203 g/t Au(1) over 8.55 m (ETW: 2.4 m) in hole UDH1740 (including 1,521 g/t Au(1) over one m (ETW: 0.28 m)). This structure has now been defined over a strike extent of 150 m and vertical extent of 150 m.
• Drilling on the Harrier Base structure returned high-grade mineralization containing visible gold. Key intercepts include a record 129 g/t Au(1) over 6.95 m (ETW: 6.2 m) in hole UDH1868 (including 877 g/t Au(1) over one m (ETW: 0.9 m)) and 14.57 g/t Au(1) over 6.8 m (ETW: 5.9 m) in hole UDH1869. These exceptional results reaffirm an increasing grade profile with depth in the Harrier gold system.
• Eagle fault underground definition drilling continues to return high-grade mineralization and has now been defined over a strike length of 730 m and vertical extent of 350 m with the return of key drill intercepts, including 6.91 g/t Au over 5.2 m (ETW: 4.5 m) in hole UDH1816 and 11.09 g/t Au over 1.4 m (ETW: 0.8 m) in hole UDH1875B.

Highlight drill intercepts from surface-based growth drilling at Fosterville gold mine

• Surface-based diamond drilling on the Lower Phoenix North system (8,050 mN) targeted Lower Phoenix structures approximately 350 m north of Lower Phoenix mineral reserves and returned a significant intercept of 6.5 g/t Au over 27.8 m (ETW: 25.0 m) in hole SPD618C. Surface-based diamond drilling programs continue to confirm the resource expansion potential of the Lower Phoenix gold system.

Record monthly operating results at Fosterville gold mine

The mining of high-grade, visible gold-bearing structures as further defined by drill results announced today has contributed to record monthly production results at Fosterville for October, 2016.

• Record monthly production for October, 2016, of 15,116 ounces of gold, exceeding the previous monthly record of 14,103 ounces produced in April, 2016;
• Record monthly mill grade for October, 2016, was achieved of 8.18 g/t Au surpassing previous monthly record of 8.09 g/t Au in May, 2016;
• Record monthly mill recovery for October, 2016, of 92.3 per cent above the previous monthly record of 91.3 per cent in June, 2016.

(1) Visible gold present in drill intercept.

Douglas Forster, president and chief executive officer, Newmarket Gold, commented: "We are very pleased to report continued positive results from our drilling programs on the Lower Phoenix and Harrier South gold systems and record monthly production at our flagship Fosterville gold mine. October, 2016, proved to be a significant month for the Fosterville operation achieving a record production output of 15,116 ounces of gold with a record mill grade and recovery of 8.18 g/t Au and 92.3 per cent, respectively. The mining of high-grade visible-gold-bearing structures in the Lower Phoenix gold system has largely contributed to the record monthly production results. The downplunge drilling of these structures has returned exceptional results supporting our view that Fosterville will be a highly productive operation for years to come with demonstrated continuity of structure and grade downplunge from existing mineral reserves.

"Record high-grade, visible gold mineralization intercepted at the Harrier Base resource target confirms the potential for Harrier to provide a high-grade, independent mining front in addition to the current Lower Phoenix South mining area. The Lower Phoenix North resource target area also continues to return exceptional results and continues to grow the resource potential of this third potential mining front area towards the north and closer to surface. We continue to invest in Fosterville with a total of 91,980 m of growth and definition drilling completed to date in 2016 using nine drill rigs. Exploration success since the start of the year on the Phoenix, Lower Phoenix and Harrier South gold systems targets continue to support our view to expand measured and indicated mineral resources through continued targeting of the plunge extensions of these high-grade structures."

Underground exploration programs at Fosterville gold mine -- 2016

Lower Phoenix gold system underground resource definition drilling program

Since the Sept. 20, 2016, Newmarket news release, drilling from four diamond drill rigs has continued to focus on resource definition and understanding of multiple gold targets including the Lower Phoenix footwall (LPFW) and Eagle faults. Reported drill results from nine holes (3,637 m) are from intercepts through the Lower Phoenix footwall and Eagle resource target areas outside of the Dec. 31, 2015, measured and indicated mineral resources. Mining production continues on the upplunge areas of the Lower Phoenix gold system structures including the high-grade Eagle fault, which have largely contributed to an October record gold mill grade of 8.18 g/t at Fosterville.

Lower Phoenix footwall structures

A total of six drill holes intercepted significant gold mineralization associated with Lower Phoenix footwall structures. The most significant mineralization contains visible gold and occurs in a newly discovered west-dipping lode as reported on the Sept. 20, 2016, Newmarket news release, where new drilling results include 550 g/t Au(1) over 3.75 m (ETW: 3.5 m) in hole UDH1278 (including 4,592 g/t Au(1) over 0.4 m (ETW: 0.3 m)), 203 g/t Au(1) over 8.55 m (ETW: 2.4 m) in hole UDH1740 (including 1,521 g/t Au(1) over one m (ETW: 0.28 m)), 27.37 g/t Au(1) over 20.1 m (ETW: 2.8 m) in hole UDH1818 (including 66.8 g/t Au(1) over 6.3 m (ETW: 0.9 m)) and 36.8 g/t Au(1) over 2.25 m (ETW: 2.25 m) in hole UDH1727.

These intercepts are located approximately 50 to 120 m vertically below and 50 to 130 m laterally along strike from current mineral reserves. The defined size of this high-grade mineralized structure is 150 m in strike length and 150 m in vertical extent. The mineralized zone appears to adjoin the high-grade Eagle structure at its lower edge and is untested downplunge. Continued definition drilling from the hangingwall drill platforms for the remainder of 2016 will advance the understanding of size and scale of this attractive resource growth target.

Eagle fault

The high-grade Eagle fault system has now been defined over a strike length of 730 m and vertical extent of 350 m. Recent drilling continues to return significant high-grade gold intercepts and supports the view that the Eagle fault system remains open for expansion downplunge. Recent drill results into the Eagle fault below 4,100 mRL include 6.91 g/t Au over 5.2 m (ETW: 4.5 m) in hole UDH1816 and 11.09 g/t Au over 1.4 m (ETW: 0.8 m) in hole UDH1875B. These results continue to confirm the continuity and high-grade tenor of the Eagle fault downplunge and clearly demonstrate the potential for mineral reserve growth on this structure.

As reported in the Sept. 20, 2016, Newmarket Gold news release, recent definition drilling into the east-dipping Eagle fault structure from the Central decline has also defined a series of east-dipping splay faults which host significant gold mineralization. Hole UDH1834 intercepted one of these splay structures returning a result of 5.52 g/t Au over 4.2 m (ETW: 2.5 m). The Eagle zone remains untested and open at depth below 4,000 mRL and south of 6,400 mN, and drilling is planned to target beyond this extent during the remainder of 2016.

Harrier South gold system underground resource definition drilling program

Since the Sept. 14, 2016, Newmarket news release, drilling from two diamond rigs has continued to focus on resource definition and understanding of multiple gold targets, including the Harrier Base fault in the Harrier South gold system. Reported drill results from seven holes (2,893 m) are from intercepts though the Harrier Base resource target area and are outside of the Dec. 31, 2015, measured and indicated mineral resources.

Harrier Base structure

Drill results returned on the Harrier Base structure contain record high-grade intercepts including 129 g/t Au(1) over 6.95 m (ETW: 6.2 m) in hole UDH1868 (including 877 g/t Au(1) over one m (ETW: 0.9 m)), 14.57 g/t Au(1) over 6.8 m (ETW: 5.9 m) in hole UDH1869 and 10.69 g/t Au over eight m (ETW: 6.4 m) in hole UDH1830 (including 15.73 g/t Au over 5.05 m (ETW: four m)).

Within a zone between 4,750 mN and 4,900mN and 4,280 mRL and 4,350 mRL, there is now a total of 11 drill hole intercepts into Harrier Base, with six of those intercepts containing visible gold and nine intercepts returning greater than 30 gram-metres of gold mineralization. Recent high-grade results have been recorded at the deepest drilling completed to date and continue to support an increasing grade trend with depth downplunge.

Surface-based growth exploration programs -- 2016

Since the Sept. 20, 2016, Newmarket news release, the company has advanced its surface-based exploration programs to test extensions of the Lower Phoenix gold system.

Surface-based growth exploration programs at Fosterville are now completed on the Lower Phoenix North 8,050 mN section and all drill results have now been returned.

Surface-based drilling into the Lower Phoenix North has advanced northward with the commencement of the Lower Phoenix 8,300 mN program on the back of drill success of the Lower Phoenix 7,850 mN, 7,950 mN and 8,050 mN sections.

All drill assay intercepts are provided in a table available on-line.

Lower Phoenix North 8,050 mN surface drill program

A surface exploration drill program on the Lower Phoenix North 8,050 mN gold system was undertaken following successful drill results returned from the Lower Phoenix North 7,950 mN and 7,850 mN surface drill programs previously completed. The Lower Phoenix North 8,050 mN program targets Lower Phoenix mineralization approximately 350 m north of mineral reserves and consisted of one parent hole with three daughter holes and second hole collared from surface. New drill results returned from the Lower Phoenix North (8,050 mN) program include 6.5 g/t Au over 27.8 m (ETW: 25.0 m) in hole SPD618C and 4.49 g/t Au over 4.50 m (ETW: 4.3 m) in hole SPD618B.

Newmarket Gold is currently compiling and interpreting results of this program and is optimistic that mineral resources could potentially be extended beyond the current extent of 7,750 mN to 8,050 mN. Newmarket has continued a surface-based drill program on Lower Phoenix North 8,300 mN with the intent to further expand the Lower Phoenix North mineral resource, which remains open to the north.

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 news release.

About Newmarket Gold

Newmarket Gold has three 100-per-cent-owned underground operating mines in Australia. The flagship operation, Fosterville gold mine, and the Stawell gold mine are located in the state of Victoria, and the Cosmo gold mine is located in the Northern Territory. 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.