Mr. Stephen Kenwood reports

MAJESTIC GOLD CORP. REPORTS THIRD QUARTER 2016 RESULTS

Majestic Gold Corp. has released its financial and operational results for the third quarter ended June 30, 2016. This release should be read in conjunction with the company's unaudited condensed consolidated interim financial statements and associated management's discussion and analysis for the same period that are available on SEDAR and the Majestic Gold website. (The financial results herein are expressed in U.S. dollars unless otherwise stated.)

Third quarter 2016 overview:

• Majestic's adjusted earnings before interest, taxes, depreciation and amortization were $901,633 in the third quarter of fiscal 2016 (2015: ($388,598)), based on improved gold production, and reduction in total cash costs per ounce. Total adjusted EBITDA for the nine months ended June 30, 2016, was $1.6-million (2015: ($390,868)). Refer to pages 14 and 15 of the company's management's discussion and analysis for the computation of this non-international financial reporting standard measure.
• Gross profit for the third quarter ended June 30, 2016, was $914,095 compared with a gross loss of $436,386 for the third quarter of 2015. Gross profit for the nine months ended June 30, 2016, was $1,293,586 (2015: ($293,474)).
• Gold sales revenue was $6.7-million for third quarter of fiscal 2016, from the sale of 5,305 ounces, at an average realized gold price of $1,260 per ounce, compared with gold sales revenue of $2.8-million from the sale of 2,251 ounces, at an average realized gold price of $1,239 per ounce, for the third quarter of fiscal 2015.
• Gold production from the Songjiagou gold mine was 5,006 ounces for the third quarter of fiscal 2016, compared with 4,605 ounces produced in the third quarter of fiscal 2015.
• For the third quarter of fiscal 2016, cash costs were $976 per ounce (2015: $1,290), and all-in sustaining costs (AISC) were $1,272 per ounce (2015: $1,551).
• Tonnes milled for the third quarter of 2016, were 340,225 tonnes with an average head grade of 0.50 gram per tonne, compared with 374,457 tonnes milled, with an average head grade of 0.43 g/t, for the third quarter of 2015.
• General and administrative expenses were $716,261 for the third quarter of fiscal 2016 (third quarter 2015: $637,416).
• The company entered into a new two-year non-binding letter of intent with Yantai Baiheng Gold Mining Co. Ltd. on July 11, 2016. The July 11, 2016, LOI supersedes the Aug. 6, 2015, LOI and allows the company an additional 24 months for due diligence on the Shuang Shan Tun and Xia Yu Cun properties, located in the Muping-Rushan gold belt in Shandong province, China.

   
                                    PRODUCTION RESULTS   
  
                                                 Three months ended         Nine months ended 
                                                      June 30,                  June 30,
                                                  2016         2015         2016         2015
Production data
Tonnes mined                                   344,470      386,408    1,262,942    1,205,445
Tonnes milled                                  340,225      374,457    1,201,106    1,170,375
Head grade (g/t)                                  0.50         0.43         0.51         0.42
Mill recovery                                       90%          89%          90%          88%
Gold produced (oz)                               5,006        4,605       17,717       14,476
Gold realized, net of smelting fees (oz)         4,661        4,246       16,844       13,517

                                    FINANCIAL INFORMATION

                                                Three months ended June 30,        Nine months ended June 30,  
                                                     2016             2015             2016             2015
Operating data
Gold produced (oz)                                  5,006            4,605           17,717           14,476
Gold realized net of smelting fees (oz)             4,661            4,246           16,844           13,517
Gold sold (oz)                                      5,305            2,251           18,101           12,217
Average realized gold price ($/oz sold)     $       1,260     $      1,239     $      1,181     $      1,264
Total cash costs ($/oz sold) (1)                      976            1,290            1,002            1,165
Total production costs ($/oz sold) (1)              1,099            1,432            1,123            1,288
All-in sustaining costs ($/oz sold) (1)             1,272            1,551            1,219            1,333

Financial data
Total revenues                              $   6,744,418     $  2,787,430     $ 21,623,821     $ 15,440,165
Gross profit (2)                                  914,095         (436,386)       1,293,586         (293,474)
Adjusted EBITDA (1)                               901,633         (388,598)       1,636,257         (390,868)
Net (loss) attributable to shareholders          (310,520)        (903,034)      (2,313,552)      (2,371,478)
Basic and diluted (loss) per share                  (0.00)           (0.00)           (0.00)           (0.00)  
                                               ----------       ----------       ----------       ----------

(1) See additional non-international financial reporting standard measures
in the company's management's discussion and analysis.
(2) Gross profit represents total revenues, net of cost of goods sold.
 

Stephen Kenwood, president and chief executive officer of Majestic Gold, is the company's qualified person as defined by National Instrument 43-101 and is the non-independent qualified person who has reviewed and approved the technical information contained in this news release.

About Majestic Gold

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

We seek Safe Harbor.