Mr. Craig Lindsay reports

OTIS DRILLS 128.0 METERS OF 1.79 G/T AU AND 80.8 METERS OF 1.87 G/T AU AT KILGORE

Otis Gold Corp. has drilled the following intercepts at its Kilgore gold project, Clark county, Idaho:

• 128.0 metres (m) of 1.79 grams per tonne gold (g/t Au) in hole 16 OKC-353;
• 27.5 m of 2.63 g/t Au and 80.8 m of 1.87 g/t Au in hole 16 OKC-354;
• 120.4 m of 1.18 g/t Au in hole 16 OKC-349;
• 74.6 m of 1.01 g/t Au and 35.9 m of 1.12 g/t Au in hole 16 OKC-352.

The four holes above, and eight additional holes reported in the associated table, represent the final 12 holes of the 10,300-metre, 40-hole drill program completed in November, 2016, at the Kilgore gold project. Analytical results for the 12 drill holes reported in this release, along with those for the initial 28 holes previously reported (see Otis news releases dated Sept. 26, 2016, Oct. 31, 2016, and Nov. 29, 2016), confirm the presence of significant gold mineralization in the Aspen formation sedimentary host rocks, the primary target of the 2016 drill program. A majority of these intercepts is of both higher grade and longer intervals than most of those encountered in prior drilling at Kilgore and thus demonstrate a clear potential to increase the overall size and grade of the Kilgore deposit.

Craig Lindsay, Otis president and chief executive officer, stated: "We are extremely pleased with the drill intercepts encountered in the previously underexplored sedimentary Aspen formation. We expect the Aspen formation will be a significant new host for gold mineralization at Kilgore and will continue to be a focus of expansion drilling going forward. Our technical team, led by Dr. John Carden and Mitch Bernardi, have done an excellent job targeting new mineralization at Kilgore in 2016."

                      From -- to       Intercept          Au grade
Hole No.                     (m)             (m)             (g/t)

16 OKC-333          16.2 -- 43.6            27.4              0.52
                    51.2 -- 69.5            18.3              0.74
                  147.2 -- 159.4            12.2              0.62
                  179.2 -- 191.4            12.2              0.47
16 OKC-334          51.8 -- 79.2            27.4              0.59
                  102.1 -- 158.0            55.9              0.86
                  185.9 -- 208.8            22.9              3.13
16 OKC-335        102.1 -- 153.9            51.8              0.75
16 OKC-337           8.5 -- 25.6            17.1              0.59
                    46.6 -- 49.7             3.1              1.21
16 OKC-341          38.1 -- 62.5            24.4              1.22
                    67.1 -- 80.8            13.7              0.36
                   94.5 -- 106.7            12.2              0.73
                  117.3 -- 141.7            24.4              0.49
16 OKC-345         93.0 -- 157.0            64.0              1.08
                  225.6 -- 231.6             6.0              2.11
16 OKC-349          21.3 -- 45.7            24.4              0.73
                  147.8 -- 268.2       120.4 (1)              1.18
16 OKC-350        108.8 -- 121.9            13.1              0.38
                  132.6 -- 145.4            12.8              0.47
                  196.6 -- 207.3            10.7              0.54
                  216.4 -- 221.0             4.6              0.68
                  245.4 -- 263.7            18.3              0.46
16 OKC-351                               no significant intercepts
16 OKC-352          54.9 -- 62.5             7.6              0.82
                  150.9 -- 186.8            35.9              1.12
                  195.1 -- 219.5            24.4              0.43
                  225.6 -- 300.2            74.6              1.01
16 OKC-353          32.0 -- 38.1             6.1              0.92
                  164.6 -- 292.6       128.0 (2)              1.79
16 OKC-354          45.7 -- 53.3             7.6              0.42
                    59.4 -- 64.0             4.6              0.55
                   85.3 -- 112.8        27.5 (3)              2.63
                  125.0 -- 126.5             1.5              4.62
                  175.3 -- 202.7            27.4              1.19
                  240.8 -- 321.6        80.8 (4)              1.87

Notes
(1) Includes 7.6 metres of 4.1 g/t Au.
(2) Includes 7.6 metres of 11.96 g/t Au. 
(3) Includes 7.6 metres of 10.23 g/t Au.
(4) Includes 7.6 metres of 10.32 g/t Au.
(5) True widths are estimated at between 80 per cent and 
100 per cent of the drilled interval based on their estimated 
dip, association with diking, the orientation of 
sedimentary bedding and continuity of mineralization 
between drill holes.

2016 Kilgore drill program highlights

Highlights from the drill program and of importance to the future development of the Kilgore deposit include:

• Twenty-five of the 40 holes drilled in 2016 encountered mineralization in the newly emerging Aspen formation host.
• An additional 11 holes encountered mineralization in Tertiary lithic tuff and dikes, the primary host of gold mineralization within the existing deposit.
• In total, 36 of the 40 holes drilled in 2016 intersected reportable gold mineralization, representing a drill success rate of 90 per cent.
• A complete table of 2016 drill results can be found on the Otis website.
• Results of Otis's 2016 drill campaign continue to support the premise that gold mineralization in the Aspen formation is more extensive than indicated by previous drill testing and appears to lie along a northwesterly trending belt or corridor in the northern half of the deposit, much of which remains open for further drilling.
• Results of drill holes targeting the basement Aspen formation sedimentary host rocks continue to reveal the presence of significant open-ended mineralization that is typically higher grade and displays thicker mineralized intercepts than those comprising the current bulk of the deposit in the overlying volcanic host rocks.
• Reported intercepts in basement Aspen formation sedimentary rocks demonstrate that mineralization exists to depths of up to 300 metres below the surface of the deposit, with some still open at depth.
• The Tertiary intrusive sill (Tct), which directly overlies the Aspen formation and locally intrudes the upper portion of it, has been proven to host significant mineralization and the extensive contact between the two rock types is an important locus for additional mineralization in the basement. Significant intercepts can and do exist in both the Aspen formation and the Tct, and in many cases straddle the contact between them to occur continuously throughout both units.
• Some intercepts drilled in Aspen formation rocks along the mineralized northwest-trending corridor contain coarse-grained visible gold indicative of potential bonanza grades at depth.

Immediate next steps at the Kilgore gold project include:

• Production of an updated set of geologic cross-sections reflecting the 2016 drill results;
• Preparation of an updated National Instrument 43-101 resource estimate;
• Development of a 2017 drill program and completion of associated program permitting.

2016 Kilgore drill program background

The 40-hole 2016 drill program was designed from an updated set of geologic cross-sections and long sections containing all historic Kilgore drill results through 2015. Based on these sections, drill holes were selected to target mineralization at depth in the Aspen formation and to infill and define the limits of the current resource. Selected hole locations targeting the Aspen formation at depth were focused along the Main Road, Segment 1 Road, North Road and B Road areas (the location of the Crab Claw drilling completed in 2015 and reported in early 2016 -- see Otis news release dated Jan. 14, 2016). Drill holes in these areas were selected to infill and define the limits of the resource and are mostly located in the southwestern part of the deposit where historic drilling is sparse.

The 12 drill holes reported in this news release, along with the assays and drill intercepts from the 28 holes announced on Sept. 26, Oct. 31 and Nov. 29, 2016, are presented in a drill hole location map available on the company's website. A table listing the complete 2016 drill results is available on the company's website as well.

Analysis and Otis quality assurance/quality control program

All analytical work was performed by ALS Chemex Labs located in Reno, Nev., and Vancouver, B.C., that have quality management system certification and technical capability accreditation. A 50-gram pulp of all samples was assayed for gold by fire assay/AA (atomic absorption) finish methods. Certified reference materials, duplicates and blanks were inserted into the sample stream for quality control.

Intercepts reported in the associated table are calculated using a 0.25 g/t Au cut-off grade and may include a few internal waste intervals less than this cut-off. The RC drilling reported in this release was conducted by O'Keefe Drilling Inc., Butte, Mont., employing a Foremost 650 reverse circulation drill rig outfitted with a circulating wet splitter. The core drilling was conducted by Timberline Drilling of Hayden, Idaho, employing two rigs, a DE-140 NQ core rig and an LF-90 HQ core rig. The qualified person under National Instrument (NI 43-101) standards of disclosure for mineral projects for this news release is Paul D. Gray, PGeo, who has reviewed and approved its technical content.

About the Kilgore deposit

The Kilgore gold project contains a current (dated Sept. 12, 2012) National Instrument 43-101 indicated resource of 520,000 ounces Au in 27.4 million tonnes at a grade of 0.59 g/t Au and an inferred resource of 300,000 ounces Au in 20.2 million tonnes at a grade of 0.46 g/t Au. The deposit is part of an extensive low-sulphidation quartz-adularia epithermal hydrothermal system hosted in Tertiary volcanic rocks and basement Aspen formation calcareous siltstone, shale and sandstone of Late Cretaceous age. Gold mineralization is of the traditional disseminated, bulk-tonnage-type similar to that comprising the classic volcanic-hosted gold deposits at Round Mountain, Nevada, and McDonald Meadows, Montana. The deposit features very attractive metallurgy with excellent gold recovery averaging greater than 80 per cent at 1.5-inch crush size based on column leach test results (see Otis news release dated June 5, 2012).

We seek Safe Harbor.