Mr. Wade Hodges reports

NEVADA EXPLORATION INC. DOUBLES ITS LAND HOLDINGS AT GRASS VALLEY PROJECT

Nevada Exploration Inc. has added 233 new claims covering 18.9 square kilometres (7.3 square miles) at its Grass Valley project in north-central Nevada, more than doubling the size of the project to 34.4 square km (13.3 square miles).

NGE's Grass Valley project is located at the northwestern end of Grass Valley, a 924-square-kilometre (357-square-mile) valley basin that continues south from the world-class mineralization at Barrick Gold Corp.'s Cortez mine, which produced nearly one million ounces in 2015, and contained proven and probable reserves greater than 11 million ounces as of Dec. 31, 2015. Since 2011, NGE has used its hydrogeochemistry exploration technology to explore for new gold exploration targets in this large prospective basin in the area of Nevada famous for Carlin-type gold deposits. With this technology, NGE identified a 14.5 km by 2.4 km (nine-mile by 1.5-mile) target defined by elevated concentrations of gold and gold-related trace element geochemistry in groundwater. The target sits approximately 16 km (10 miles) south of the Cortez mine, along the western edge of the northern end of Grass Valley.

In addition to completing a detailed hydrogeochemistry program using the company's direct push groundwater sampling equipment, NGE and a former partner's work to date at the Grass Valley project has included: vegetation and soil surface geochemistry (including soil gas mercury); the acquisition and reprocessing of two historic seismic geophysical lines; geologic mapping; a gravity geophysical survey; one stratigraphic orientation drill hole; and most recently, geochemical analysis of approximately 2,400 metres (8,000 feet) of drill cuttings obtained from seven historic (2005 to 2008) geothermal exploration drill holes.

As described in more detail in the company's news release of Oct. 26, 2015, based on the work to date at the project, the company believes that it has confirmed the presence of a large, gold-bearing hydrothermal system at the Grass Valley project, consistent with the geologic setting of a Carlin-type gold deposit. NGE's exploration team is continuing to update its geologic model with continuing field mapping activities and 3-D compilation and interpretation of the comprehensive exploration datasets. With this work, NGE believes it has established support that the complex structural controls associated with the Cortez mine to the north are also present along the western edge of Grass Valley, coincident with the elevated gold in groundwater NGE has identified at the Grass Valley project. The company has now enlarged its claim position to more fully control this increasingly important exploration target. Along with the company's South Grass Valley project, located 30 km (18 miles) to the south and recently highlighted in a news release dated Aug. 24, 2016, NGE now controls more than 56 square km (22 square miles) in the Grass Valley basin.

Explaining the significance of NGE's Grass Valley project, Wade Hodges, NGE's chief executive officer: "Cortez is one of Nevada's largest and lowest-cost gold mines. Significant mineralization is known to continue both northwest and southeast of Cortez in a band of mineralized geologic systems, including: Gold Acres, Pipeline, Cortez, Gold Rush, South Gold Rush and now the Iceberg project. Recent academic research on the genesis of Carlin-type gold deposits suggests additional bands of gold mineralization should be located parallel to and farther south of this band. Using hydrogeochemistry, we have continued to systematically explore this important area south of Cortez in Grass Valley, and with supporting confirmation from conventional exploration tools, have built a strong case that the western edge of Grass Valley could be the logical host for another band of gold mineralization. Based on our ongoing work at Grass Valley, we have acquired this additional ground to cover what we consider to be the main structural corridor of this important, district scale, exploration project."

The company has agreed to extend the term of the investor relations agreement with Future Money Trends LLC announced on Oct. 19, 2015, for an additional 18 months, through May 1, 2018.

Mr. Hodges, chief executive officer and director, Nevada Exploration Inc., is the qualified person, as defined in National Instrument 43-101, and has prepared the technical and scientific information contained in this news release.

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