Mr. Douglas Forster reports

NEWMARKET GOLD REPORTS DRILL RESULTS FROM UNDERGROUND DELINEATION DRILLING ON THE HARRIER SOUTH GOLD SYSTEM AT THE FOSTERVILLE GOLD MINE

Newmarket Gold Inc. has released drill results from 57 underground holes, totalling 14,417 metres, from the Harrier South gold system at the Fosterville gold mine. Underground resource definition drilling, targeting downplunge extensions to the Harrier and Osprey gold system, commenced in January, 2016. Drilling was targeted to further define previously identified mineralized trends and to assess the potential of Harrier reserve expansion. These mineralized extensions lie directly downplunge from the existing Harrier mining area and drilling results suggest there is a strong potential for significant conversion of mineral reserves from this area. The Harrier South drilling target area is located approximately 1.2 kilometres south of the Phoenix and Lower Phoenix mineral reserves directly downplunge from the active Harrier mining area.

Highlights and key drill intercepts at Harrier South gold system, Fosterville gold mine:

• Drilling in the Harrier South system continues to confirm near-mine gold mineralization with high-grade gold intercepts and indicates potential to extend mineral resources and mineral reserves south (downplunge).
• New drilling results at the Harrier South gold system indicate an increasing grade profile with depth below 4,450 mRL, which is similar to the Lower Phoenix gold grade increase at a similar depth.
• Drilling on the Harrier Base structure has returned high-grade mineralization containing the first recorded occurrence of visible gold in the Harrier system. Key intercepts include 22.13 grams per tonne gold(1) over 3.4 m (estimated true width: 3.33 m) in hole UDH1559 and 10.3 g/t Au over 3.35 m (ETW: 3.27 m) in hole UDH1596.
• Drilling on the Harrier hangingwall and Harrier structures has returned high-grade results including 13.46 g/t Au over 3.35 m (ETW: 2.25 m) in hole UDH1606, 10.78 g/t Au over 4.65 m (ETW: 4.57 m) in hole UDH1567 and 6.82 g/t Au over 5.65 m (ETW: 5.37 m) in hole UDH1577.
• Drilling on Osprey returned significant results including 11.99 g/t Au over 3.4 m (ETW: 3.39 m) in hole UDH1575 and 7.87 g/t Au over 4.4 m (ETW: 4.27 m) in hole UDH1663.
• Significant intercepts have been returned from intercepts on the Osprey hangingwall structure with 14.25 g/t Au over 3.6 m (ETW: 3.59 m) in hole UDH1593 and on the Osprey Link structure with 16.6 g/t Au over 3.05 m (ETW: 3.05 m) in hole UDH1619.
• The potential for east-dipping mineralization has also been identified through recent drilling with shallow east-dipping structures interpreted over an approximate 300 m strike length. The grade and continuity of this east-dipping mineralized structure need to be verified with further drilling.
• Based on the drill results returned from the initial phase of drilling, the company plans to continue drilling the Harrier South gold system for the remainder of 2016 targeting the expansion of the gold system downplunge of indicated mineral resources to facilitate mineral reserve evaluation.

(1) Visible gold present in drill intercept; all drill results are presented in a table on-line.

Douglas Forster, president and chief executive officer, Newmarket Gold, commented: "We are very pleased to report results from our underground delineation drilling program on the Harrier South gold system at our flagship Fosterville gold mine. In addition to our successful advancement of the ongoing Phoenix and Lower Phoenix gold system delineation and expansion drilling projects, we have been able to progressively advance another high-potential resource target at Fosterville. Drilling has now defined an approximate 400 m strike length across multiple mineralized lenses in the Harrier South gold system downplunge of the current mining front. Based on results returned to date, we are optimistic that mineral reserve conversion can be realized through this drilling. Importantly, the drilling has also reaffirmed an increasing grade profile with depth in the Harrier gold system and we intend to continue drilling with two drill rigs for the remainder of 2016 to further explore mineral reserve expansion opportunities."

Harrier South delineation programs

Since January, 2016, the company has advanced its Harrier South underground delineation programs testing the southern downplunge extensions of the Harrier/Osprey mineralized system, completing 57 holes for 14,417 m. The Harrier South drilling target area is located directly downplunge from the active Harrier mining area and mineral reserves, approximately 1.2 kilometres south of the Phoenix and Lower Phoenix mineral reserves. Since the commencement of ore production in March, 2011, a total of 997,000 tonnes at 4.05 g/t Au for 130,000 ounces has been mined from Harrier to Dec. 31, 2015. Ore sourced from Harrier continues to form part of the 2016 mine plan from a Dec. 31, 2015, mineral reserve base of 47,000 tonnes at 3.45 g/t Au for 5,000 ounces.

Progressive drilling and geological modelling of the Harrier South system have confirmed the presence of 10 mineralized zones (Osprey, Osprey Link, Osprey splays, Osprey hangingwall, Osprey Base, Harrier, Harrier splay, Harrier Base, Harrier hangingwall and Harrier east dipping) below 4,500 mRL, which host significant gold mineralization. Mineralization has developed along a network of reverse thrust faults that transects east-dipping shale and sandstone beds on the eastern limb of an anti-cline axis which is positioned footwall to the Fosterville fault. Harrier mineralization primarily consists of disseminated arsenopyrite and pyrite, although recently minor amounts of stibnite and an occurrence of visible gold have been observed.

Osprey structures

Recent definition drilling into the Osprey mineralized structures has targeted indicated and inferred mineral resources down to 4,450 mRL, closing drill spacing into approximately 25 m by 25 m, with the aim to increase resource confidence to enable robust reserve evaluation. Drill results reaffirm continuity of geological structures and have returned intercepts of variable width and grade. The most significant intercepts include 11.99 g/t Au over 3.4 m (ETW: 3.39 m) in hole UDH1575 and 7.87 g/t Au over 4.4 m (ETW: 4.27 m) in hole UDH1663 on the Osprey structure, 14.25 g/t Au over 3.6 m (ETW: 3.59 m) in hole UDH1593 on the Osprey hangingwall structure, and 16.6 g/t Au over 3.05 m (ETW: 3.05 m) in hole UDH1619 on the Osprey Link structure.

A number of lower-grade and narrower width drill intercepts have demonstrated the variable nature of mineralization along the Osprey structures; however, the width and strength of localized high-grade mineralization provide encouragement for reserve conversion in this zone.

Harrier structures

Significant gold mineralization associated with the Harrier Base and Harrier hangingwall structures has been realized through increased definition drilling. Drill spacing on these structures has been closed into approximately 25 m by 25 m on these structures above 4,320 mRL and north of 4,920 mN.

Drill results returned on the Harrier Base structure include 22.13 g/t Au over 3.4 m (ETW: 3.33 m) in hole UDH1559, which includes an occurrence of visible gold and 10.3 g/t Au over 3.35 m (ETW: 3.27 m) in hole UDH1596. The Harrier Base structure exhibits the greatest offset of all of the mineralized reverse faults in the Harrier South system and associated mineralization. In some locations these mineralized structures are narrow in width but they have demonstrated high grades and good continuity. To date, drill results in this structure indicate an increasing grade trend with depth downplunge.

In support of the Harrier Base mineralization, strong results have also been returned on the Harrier hangingwall structure which includes significant intercepts of 13.46 g/t Au over 3.35 m (ETW: 2.25 m) in hole UDH1606, 10.78 g/t Au over 4.65 m (ETW: 4.57 m) in hole UDH1567 and seven g/t Au over 4.4 m (ETW: 4.39 m) in hole UDH1561, bolstering grades in this mineralized zone, particularly below 4,400 mRL.

In addition, significant intercepts of gold mineralization have been realized on the Harrier structure including 6.82 g/t Au over 5.65 m (ETW: 5.37 m) in hole UDH1577. The potential for east-dipping mineralization has also been identified through recent drilling with shallow east-dipping structures interpreted over an approximate 300 m strike length. The grade and continuity of this east-dipping mineralized structure need to be verified with further drilling.

Newmarket Gold is encouraged by drill results returned to date which indicate increasing mineralization grade profiles with depth and delineation drill programs will continue on the Harrier South gold system utilizing two diamond drill rigs for the remainder of 2016. Continued successful drilling could result in significant conversion of mineral reserves from this area by the end of 2016 and provide increased flexibility for the Fosterville operation, with the potential to maintain independent mining fronts from the Phoenix/Lower Phoenix gold system.

Tables and figures referenced in this press release are available on-line.

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.

Quality assurance/quality control information is provided at the bottom of the table on-line.

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