Mr. Douglas Forster reports

NEWMARKET GOLD CONFIRMS NEAR-MINE HIGH-GRADE GOLD MINERALIZATION IN LOWER PHOENIX FOLLOWING SURFACE BASED DRILL PROGRAMS AT FOSTERVILLE GOLD MINE

Newmarket Gold Inc. has released positive results of nine drill holes (6,640 metres) from two new surface-based growth programs that targeted the southern (6,200 m north) and northern (7,950 m north) areas of the Lower Phoenix system at the flagship Fosterville gold mine. Drilling at Fosterville continues to focus on further defining near-mine underground gold targets located on the Lower Phoenix and Lower Phoenix footwall faults where the company believes there is good potential to extend the current known resource. Drill results include several high-grade gold intercepts along strike from Fosterville's mineral resources and reserves. Additionally, 500 m of underground development to build the Harrier exploration drill drive, a third growth program at Fosterville, is well advanced. All dollar amounts disclosed are in U.S. dollars.

Highlights and key drill intercepts at Fosterville (outside indicated mineral resources reported December, 2014)

• Drilling in the Lower Phoenix system confirms near-mine gold mineralization, with high-grade gold intercepts, and indicates potential to extend resources south (down plunge) and north (up plunge).
• Surface-based diamond drilling on the Lower Phoenix south system (6,200 m north), targeting the down-plunge extensions of Lower Phoenix structures approximately 200 m south of delineated mineral resources, has returned 12.75 grams per tonne gold (Au) over 5.9 m (ETW 4.5 m) in hole SPD614C (including 29.41 g/t Au over 1.3 m (estimated true width one m)) and 6.16 g/t Au over 2.05 m (ETW 1.9 m) in hole SPD614A.
• Surface-based diamond drilling on the Lower Phoenix north system (7,950 m north), targeting the up-plunge extension of the Lower Phoenix faults, approximately 200 m north of defined mineral resources, has returned significant drill intercepts including 12.5 g/t Au over 3.35 m (ETW 2.4 m) in hole SPD615A and 9.28 g/t Au over 3.35 m (ETW 3.1 m) in hole SPD615.
• Surface-based diamond drilling has commenced on 7,850 m north to follow up the high-grade gold results returned for 7,950 m north. Drilling will target up-plunge extensions of the Lower Phoenix system 100 m north of defined mineral resources.
• Underground drill drive development commenced in the fourth quarter of 2015 from the Harrier decline to support 2016 drilling of the down-plunge extension of the Phoenix gold system approximately 1,000 m south of current mineral reserves. A total of 243 m of development of this project is now complete.
• Fosterville continues to finalize the December, 2015, mineral resource and reserve National Instrument 43-101 technical report which is on track to be delivered before the end of the first quarter of 2016.

Douglas Forster, president and chief executive officer, Newmarket Gold, commented: "We are very encouraged by the latest drill results from our growth programs targeting the Lower Phoenix system at our flagship Fosterville gold mine. Based on our exploration success to date, and the previous discovery of the high-grade, visible gold-bearing Eagle fault zone, we believe the Lower Phoenix system has excellent potential to increase mineral resources. In 2016, drill programs will be focused on expanding the current resource base by gaining a detailed understanding of the geological potential to extend mineral resources, both up plunge and down plunge of existing mineral reserves in the Lower Phoenix system. With these first nine holes, we have intersected mineralization to the north and south suggesting potential extension of resources near mine while adding greater confidence that the mine will continue to produce high-quality ounces for many years to come."

Fosterville surface drilling programs

Since August, 2015, Newmarket has committed approximately $2.0-million to several surface drill programs to test both the northern and southern extensions of the Lower Phoenix mineralized system, which is one of the significant ore sources for the Fosterville gold mine. The purpose of the drilling is to increase the knowledge and confidence, both up plunge and down plunge of the current mining areas, and to potentially increase mineral resources. Newmarket sees these programs as a critical investment into the Fosterville gold mine to allow for sustainable growth in the mineral resource base and the extended future of Newmarket's flagship operation.

Lower Phoenix south (6,200 m north) surface drill program

Drilling activities commenced from surface drilling locations in August, 2015, as part of a detailed program targeting the down-plunge extensions of the Lower Phoenix system. The program comprises one parent hole and four daughter holes totalling approximately 3,300 m at a cost of approximately $515,000. The target drill intercept positions lie approximately 200 m south of existing mineral resources and 370 m south of existing mineral reserves. Results of 12.75 g/t Au over 5.9 m (ETW 4.5 m) in hole SPD614C highlight the potential for additional mineral resource growth a significant distance from the current mining areas. This latest result supports the previously reported drill intercept of 4.43 g/t Au over eight m (ETW 6.1 m) in hole SPD567B on 6,075 m north. These new drill intercepts are associated with Lower Phoenix footwall westerly dipping faults adjacent to the Lower Phoenix fault, and are seen as a significant future mining area down plunge.

Lower Phoenix north (7,950 m north and 7,850 m north) surface drill programs

The Lower Phoenix north (7,950 m north) surface drill program was designed to target the up-plunge extension of the Lower Phoenix system. The program, which commenced in September, 2015, and was completed in January, 2016, comprised four holes for a total of 2,580 m at a cost of approximately $545,000. Previous drilling also exists on 8,200 m north and 7,700 m north, and the results in the 7,950 m north program of 12.5 g/t Au over 3.35 m (ETW 2.4 m) in hole SPD615A and 9.28 g/t Au over 3.35 m (ETW 3.1 m) in hole SPD615 highlight the potential to increase mineral resources in this area.

Gold mineralization present on 8,200 m north includes 6.52 g/t Au over six m (ETW 4.2 m) in hole UDE091, and 4.73 g/t Au over 7.9 m (ETW 5.7 m) in hole UDE090 and on 7,700 m north includes 3.2 g/t Au over 6.5 m (ETW 6.5 m) in hole SPD609A and 2.19 g/t Au over 5.3 m (ETW 5.1 m) in hole SPD609. This drilling has shown the continuity of mineralization between the 7,700 m north and 8,200 m north sections is supported by these latest results.

After the success of the drilling on the 7,950 m north section a decision was made to commence a drill program at a cost of $600,000 on the 7,850 m north section. This drill program is currently under way and is an important development for the Fosterville gold mine as a successful outcome would support an alternative mining front allowing for greater flexibility in future mining plans.

Harrier drill drive development

Development of a drill drive west from the Harrier decline commenced in the fourth quarter of 2015 and when complete will establish a drill platform to allow testing of the Fosterville mineralization corridor approximately 1,000 m down plunge southward of current mineral reserves.

A total of 243 m of development is now complete and approximately 257 m of further development is planned to be constructed in the first half of 2016. The total development cost is estimated to be approximately $2.7-million. Commencement of exploration drilling from the Harrier drill drive is planned for the third quarter of 2016. The Harrier drill drive development will provide a future opportunity for extension in a northerly direction to explore resource potential towards the current mining areas of Phoenix and Lower Phoenix.

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 news release.

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