Mr. Douglas Forster reports

NEWMARKET GOLD COMMENCES EXPLORATION DRILLING AT THE ESMERALDA GOLD DEPOSIT, AND ADVANCES THE MAUD CREEK GOLD PROJECT PEA STUDY

Newmarket Gold Inc. continues to execute on its internal growth exploration programs, as drilling has commenced on the 100-per-cent-owned Esmeralda gold deposit, a strategic growth project located in the Northern Territory only seven kilometres southeast of Newmarket's 100-per-cent-owned Union Reefs processing facility. Also in the Northern Territory, the previously announced preliminary economic assessment study for the 100-per-cent-owned Maud Creek gold project is well under way with an initial report expected to be published in first quarter 2016 by SRK Consulting (Australasia) Pty. Ltd.

Key highlights:

• Drilling on the Esmeralda gold deposit has commenced with one surface reverse circulation and one diamond drill rig. The drill program consists of approximately 80 RC drill holes for 5,200 metres and seven diamond holes for 540 metres of drilling at total cost of $425,000 (U.S.). Diamond drilling will provide additional geotechnical information for establishing open-pit design criteria. The Esmeralda gold deposit hosts a National Instrument 43-101 inferred mineral resource of 1.06 million tonnes grading 2.06 grams per tonne gold at a 0.50 g/t Au cut-off for 70,300 ounces gold and has open-pit, oxide mining potential (see Newmarket news release dated July 24, 2013).
• Work is continuing on the development of a notice of intent for open-pit mining of the Esmeralda deposit. This is the first step in gaining approval for a mining operation from the Department of Mines and Energy (DME).
• SRK Consulting (Australasia) has continued the development of the PEA for the Maud Creek gold project, with this study to be completed in Q1 2016.

Douglas Forster, president and chief executive officer, Newmarket Gold, commented: "Our growth exploration programs are focused on high-priority targets in our project pipeline that can have a significant positive impact on our near-term operations and have potential for high-margin resource ounces. The Esmeralda and Maud Creek deposits are 100-per-cent-owned gold projects that could contribute significantly to organic production growth at our the Northern Territory operations given their proximity to our Union Reefs mill which has approximately 1.2 million tonnes excess milling capacity."

Esmeralda drilling program

The Esmeralda growth project includes two deposits, which are ranked highly due to the proximity to the Union Reefs processing facility and the presence of oxidized mineral resources potentially available for open-pit mining. The deposit could possibly contribute near-term mill feed to the processing schedule with ore mined from the Cosmo underground mine.

The Esmeralda gold deposit is located approximately seven kilometres to the southeast of the Union Reefs processing facility and has a previously reported inferred mineral resource of 1.06 million tonnes at 2.06 g/t Au at a 0.50 g/t Au cut-off for 70,300 ounces (see Newmarket news release dated July 24, 2013). This mineral resource is based on approximately 11,720 metres of drilling in 156 drill holes completed between 1992 and 1999. The unmined deposit, consisting of two distinct mineralized zones termed Esmeralda A (eastern line) and Esmeralda B (western line), has open-pit oxide mining potential. The current diamond drilling program is expected to assist with the geotechnical analysis of the deposit and to provide material for additional metallurgical testwork. The current RC drill program consisting of 80 drill holes over 5,200 m has the potential to increase the size of the inferred mineral resource and increase the confidence level for parts of the resource.

The gold mineralization in Esmeralda A occurs in a series of north-northwest-south-southeast-striking, bedding-plane parallel quartz-tourmaline veins associated with pyrite-sericite alteration in a sequence of alternating slates and greywackes. These veins are thought to have formed during an episode of dextral strike-slip movement between a series of right-lateral step-overs.

The gold mineralization at Esmeralda B also occurs in a series of north-northwest-south-southeast-striking, bedding-plane parallel quartz veins in an alternating slate-greywacke sequence. Gold mineralization also occurs in northeast-southwest-striking sinistral cross fractures and in the culminations of parasitic folds as pyrite-sericite alteration.

Maud Creek preliminary economic assessment

The Maud Creek gold deposit is located 108 kilometres south of the Union Reefs processing facility and 20.7 kilometres to the east of the regional township of Katherine. The shear zone hosted gold deposit was discovered in 1987, explored by several companies and mined to a shallow depth for oxide gold in the period 1999 to 2000. The deposit has an indicated mineral resource of 7.7 million tonnes grading 3.50 g/t Au at a one g/t Au cut-off for 871,000 ounces and an inferred mineral resource of 4.2 million tonnes at 2.50 g/t Au at a one g/t Au cut-off for 343,600 ounces (see Newmarket press release dated July 24, 2013).

SRK Consulting (Australasia) is progressing a study of the Maud Creek gold project toward delivery of a National Instrument-compliant technical report to support a PEA on the project. Since commencing in April, 2015, the study has focused on review of the geological and resource models, and confirmation of the geotechnical design parameters. There has been no material changes in these aspects of the project. Specification and design of the metallurgical process flowsheet and plant design are progressing based on an estimate of the potential mining inventory from the preliminary mine design work.

The study is progressing to completion of the mining schedules and definition of infrastructure requirements in line with the environmental and social considerations to underpin the operating and capital cost estimates. The SRK technical report on the Maud Creek gold project is due to be completed in Q1 2016.

Qualified person

Mark Edwards, MAusIMM (CP), MAIG, general manager, exploration, 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.

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