Mr. Chris McFadden reports

NXGOLD ANNOUNCES PLANS FOR MAIDEN EXPLORATION PROGRAM AT THE KUULU PROJECT

Nxgold Ltd. has released plans for an initial and first phase exploration program on the Kuulu gold project which the company expects to commence in summer 2017.

The first phase exploration campaign will consist of the following programs:

• A minimum-4,000-metre, 30-hole diamond drill program utilizing two drill rigs;
• Project-wide helicopter-borne high-resolution VTEM Plus (versatile time-domain electromagnetic) and magnetic survey and low-altitude, slow-flying drone magnetic survey;
• Project-wide systematic rock and till sampling.

Diamond drilling

A two-diamond-drill-rig program comprising a minimum of 4,000 m in approximately 30 holes is planned for the summer 2017 exploration program at Kuulu. Approximately half of the drilling is planned at high-priority targets which include areas with the highest concentrations of newly discovered gold-rich quartz float material including the RIL and RB zones on the western and eastern sides of the Dickson-Pyke fault, respectively. At these zones high-grade gold quartz carbonate boulders have been identified with gold grades ranging from 1.1 to 17.8 grams per tonne and 3.8 to 38 g/t, respectively. The remaining metres will be allocated to the Island, 282, GD and Hinge zones where the company will target magnetic high linears that exhibit offsets, flexures or breaks. The Island and 282 zones are the areas with the highest gold grades in boulders which range from 1.6 to 451 g/t gold at Island and 2.3 to 282 g/t gold at 282.

Nxgold will commence drilling upon receipt of water licence from the Nunavut Water Board which the company expects in July, 2017.

Electromagnetic and magnetic surveys

Nxgold will cover the entire Kuulu project with 1,100 line kilometres on 50 m spaced traverses controlled by tie lines at 500 m spacing. This VTEM Plus and magnetic survey will provide high-resolution electromagnetic and magnetic data for the direct detection and delineation of sulphide-associated gold mineralization and facilitate the mapping of bedrock lithologies and structures, which in turn influences the emplacement or hosting of potentially economic gold mineralization.

Additionally, a low-altitude, slow-flying drone magnetic survey consisting of 1,876 line km at line spacing of 25 m covering the entire Kuulu project will be flown. This survey will provide even higher-resolution imagery which is an integral layer for drill targeting and will help identify potential dilation zones which could lead to accumulations of gold mineralization.

The company expects to initiate these surveys in mid-May upon receipt of required authorizations and expects them to take 30 to 35 days to complete.

Systematic rock and till sampling

Concurrently with diamond drilling, the company will undertake a project-wide, systematic rock and till sampling program which will focus around the Dickson-Pyke fault which is the regional fault structure in the area and hosts Agnico Eagle Mines Ltd.'s Meliadine gold project located immediately down trend to the southeast from the Kuulu project.

Management appointment

The company is also pleased to announce the appointment of Darren Lindsay as vice-president, exploration and development.

Mr. Lindsay has over 20 years of experience in mineral exploration across four continents. Mr. Lindsay has worked for both junior and senior companies, including Newmont Mining Corp., Miramar Mining Corp., BHP Minerals Canada Ltd., Inmet Mining Corp. and Kodiak Exploration Ltd. He was directly involved in resource expansions, belt-scale exploration and feasibility-level studies of the gold deposits in Hope Bay, Nunavut.

Chris McFadden, chief executive officer, commented: "We are extremely excited to get up to Kuulu and begin comprehensive exploration on this highly prospective gold project. With all of the surface signs present indicating high-grade gold mineralization at the project, we now look forward to the systematic drill testing of high-priority targets on the project this summer once we obtain our water licence and receive all required authorizations. We would also like to welcome Darren to our team and look forward to working with him and utilizing his expertise in gold exploration, especially in Nunavut. We are in the advanced stages of planning initial exploration for the newly acquired 60,000-hectare Chicobi project in the heart of the Abitibi greenstone belt in Quebec and will provide an update in the near term. With approximately $5-million cash on hand, we remain well funded for our current 2017 plans."

The company also announces the grant of a total of 250,000 options to acquire up to that same number of common shares of the company to the vice-president, exploration and development, pursuant to the company's stock option plan. The options are for a five-year term, expire on April 25, 2022, and are exercisable at a price of 45 cents per share.

About Nxgold Ltd.

Nxgold is a Vancouver-based exploration company. Nxgold has an exclusive option to earn up to a 70-per-cent interest in the Peter Lake gold property. The Peter Lake property is located approximately 40 kilometres northwest of Rankin Inlet, Nunavut. The property covers 4,174 hectares immediately along trend from Agnico Eagle's advanced Meliadine gold project (with applications pending to increase the size of the property to 10,670 hectares).

Technical disclosure

The scientific and technical information in this news release has been prepared or approved by Garrett Ainsworth, a director of the company, a qualified person within the meaning of National Instrument 43-101 -- standards of disclosure for mineral projects. For details of the Kuluu project including the sampling procedures, quality assurance program and quality control measures, and analytical or testing procedures applied during the execution of the work reported on in this news release please refer to the technical report on the Peter Lake project bearing an effective date of Jan. 10, 2017, and available on the company's profile at SEDAR.

This news release refers to Agnico Eagle's Meliadine gold project. Mr. Ainsworth has been unable to verify the information contained herein regarding Agnico Eagle's Meliadine gold project and such information is not necessarily indicative of the mineralization on the Kuulu project in which the company has an exclusive right to earn up to a 70-per-cent interest in.

We seek Safe Harbor.