Newmarket Gold Increases Flagship Fosterville Gold Mine Mineral Reserves by 34% With A 25% Increase in Reserve Grade to 6.95 Grams Per Tonne

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Mar 21, 2016) - Newmarket Gold Inc. ("Newmarket" or the "Company") (TSX:NMI) (OTCQX:NMKTF) is pleased to announce the results of the Company's updated 2015 year-end Mineral Reserves and Mineral Resources. The Company's Annual Information Form and Technical Reports prepared in accordance with National Instrument 43-101 supporting the 2015 Mineral Reserve and Mineral Resource estimates will be available today under Newmarket's profile at www.sedar.com (see "Technical Reports" section below).

Year-End 2015 Mineral Resources and Reserves Highlights

• Fosterville Gold Mine Mineral Reserves increased 34% to 244,000 ounces of gold, after depletion, as a result of the discovery of the high-grade, visible gold-bearing Eagle Fault Zone which comprises approximately 18% of total Fosterville underground Mineral Reserves. Mineral Reserve grade increased 25% to 6.95 g/t from 5.55 g/t. Excluding stockpiles, Fosterville's in situ Mineral Reserves are 239,000 ounces grading 7.03 g/t.
  
  
• Fosterville Measured and Indicated Mineral Resources increased 5% to 2.12 million ounces of gold from the previous estimate of 2.0 million ounces. Measured and Indicated Mineral Resource grade increased 13% to 4.39 g/t from 3.89 g/t.
  
  
• Fosterville's current mining front comprising the Phoenix and Lower Phoenix gold systems, and associated structures, host Measured and Indicated Mineral Resources containing 673,000 ounces grading 8.33 g/t⁽¹⁾. Recent surface-based drilling programs have confirmed the up-plunge and down-plunge potential to expand defined Mineral Resources in the Lower Phoenix gold system. The Lower Phoenix gold system has been traced by development and drilling for over 2 km and remains open for further expansion.
  
  
• Fosterville's new Eagle Fault Zone hosts Measured and Indicated Mineral Resources of 75,000 ounces grading
  11.61 g/t and Inferred Mineral Resource of 37,000 ounces grading 27.21 g/t. Also, newly discovered East Dipper structures host Measured and Indicated Mineral Resources of 166,000 ounces grading 9.79 g/t. The Eagle Fault Zone, East Dippers and other high grade structures in the Lower Phoenix gold system are currently providing mill feed and continue to positively impact mill grades, with 2015 achieving a record 6.11 g/t, a 32% increase over 2014.
  
  
• Stawell Gold Mine underground Inferred Mineral Resources increased by 55% to 116,400 ounces following positive exploration results on targets including the Aurora B discovery within the East Flank of the Magdala System.
  
  
• Stawell's new Aurora B discovery resulted in a maiden Inferred Mineral Resource of 30,400 ounces grading 3.5 g/t following three successful exploration programs completed during 2015. The grade of the Aurora B Inferred Mineral Resource is 42% greater than the underground Mineral Reserve grade. A fourth phase of drilling is underway to expand the Inferred Mineral Resource by targeting the along strike potential and to allow for the project to be assessed as a new mining front for the Stawell Mine. The Aurora B Mineral Resource remains open for potential expansion.
  
  
• Consolidated Proven and Probable Mineral Reserves total 769,000 ounces, a 2.4% improvement from Proven and Probable Mineral Reserves of 751,000 ounces for all sites excluding Maud Creek as at December 31, 2014.
  
  

Douglas Forster, President and Chief Executive Officer, Newmarket commented: "We are very pleased with the success of our delineation drill programs at our flagship Fosterville Gold Mine where the Phoenix and Lower Phoenix gold systems host Measured and Indicated Mineral Resources of 673,000 ounces grading 8.33 g/t. Fosterville's recent surface-based drilling programs targeting the Lower Phoenix system confirm near-mine gold mineralization with high-grade intercepts 200 metres up-plunge and 200 metres down-plunge from defined Mineral Resources, including 12.75 g/t over 5.9 m (ETW* 4.5 m) and 12.5 g/t over 3.35 m (ETW 2.4 m). Given the success of our drilling programs at Fosterville, we are confident that the Lower Phoenix gold system has the potential for additional Mineral Reserve and Resource growth, as well as potential for mine life extension, with a focus on creating shareholder value."

"During 2015, our growth programs have resulted in a number of significant near-mine discoveries. We are pleased to be able to establish maiden Mineral Resources for Fosterville's new, high-grade, visible gold-bearing Eagle Fault and East Dipper zones and the Aurora B discovery at the Stawell Gold Mine. All maiden Mineral Resource estimates are open for expansion and drilling of these high priority growth targets is on-going. Newmarket is well positioned for future growth with an experienced management and operating team, increasing Mineral Reserves, Resources and grade at our Fosterville Gold Mine, and a strong financial position whereby the Company will be essentially debt free by the end of Q1 2016."

*ETW = Estimate True Width

Mineral Resources and Reserves Summary at December 31, 2015

(Detailed Mineral Reserve and Mineral Resource tables follow at the end of this press release)

Fosterville Gold Mine

Mineral Reserves at Fosterville grew 34% to 244,000 ounces of gold, after depletion, accompanied by a 25% increase in grade to 6.95 g/t (1,091,000 tonnes at an average grade of 6.95 g/t) from the previous estimate of 182,000 ounces of gold (1,017,000 tonnes at an average grade of 5.55 g/t). Excluding stockpiles, Fosterville's in situ Mineral Reserves are 239,000 ounces grading 7.03 g/t. Measured and Indicated Mineral Resources increased 5% to 2.12 million ounces of gold accompanied by a 13% increase in grade to 4.39 g/t (15,036,000 tonnes at an average grade of 4.39 g/t), from the previous estimate of 2.0 million ounces of gold (16,183,000 tonnes at an average grade of 3.89 g/t).

Fosterville continues to maintain a large underlying Mineral Resource base that is expected to support future additions to Mineral Reserves, with potential to further extend the current known Mineral Resource following the latest surface based drill results in the Lower Phoenix system. The Phoenix and Lower Phoenix gold systems, where Fosterville is currently mining, host Measured and Indicated Mineral Resources of 673,000 ounces of gold grading 8.33 g/t. For detailed gold-bearing structures comprising the Phoenix and Lower Phoenix systems, see Table #1. In 2016, surface-based drilling in the Lower Phoenix system continues to confirm near-mine gold mineralization, with high-grade intercepts 200 metres up-plunge and 200 metres down-plunge from defined Mineral Resources including 12.75 g/t over 5.9 m (ETW 4.5 m) and 12.5 g/t Au over 3.35 m (ETW 2.4 m) (See February 29, 2016 Press Release available under Newmarket's profile at www.sedar.com). The Lower Phoenix gold system has been traced by development and drilling for over 2 km and remains open for further expansion.

During 2015, a total of 42,700 metres of drilling (196 drill holes) was completed which focused on the Lower Phoenix gold system. This drilling resulted in the significant discovery of the Eagle Fault Zone, a high-grade, visible gold-bearing structure proximal to current underground mine infrastructure within the Lower Phoenix gold system. This delineation drilling supported a new maiden Measured and Indicated Mineral Resource for the Eagle Fault Zone of 75,000 ounces grading 11.61 g/t and an Inferred Mineral Resource of 37,000 ounces grading 27.2 g/t. Also, newly discovered East Dipper structures in the Lower Phoenix gold system host Measured and Indicated Mineral Resources of 166,000 ounces grading 9.79 g/t.

Stawell Gold Mine

During 2015, a total of 8,010 metres of growth exploration drilling (19 holes) completed at Stawell Gold Mine resulted in the important discovery of the Aurora B target located on East Flank of the Magdala Basalt approximately 400-500 metres below surface. With the successful drilling of the Aurora B target area, an initial Inferred Mineral Resource has been established of 30,400 ounces of gold (270,000 tonnes at an average grade of 3.5 g/t). The grade of the Aurora B Inferred Mineral Resource is 42% greater than the underground Mineral Reserve grade. The Inferred Mineral Resource remains open for potential expansion. Stawell Gold Mine underground Inferred Resources increased by 55% to 116,400 ounces following positive exploration results on targets including the Aurora B zone within the East Flank of the Magdala System.

The latest drill results from Aurora B highlight the potential to build Mineral Resources on the expansive East Flank of the Stawell gold system. (See Press Release January 26, 2016 available under Newmarket's profile at www.sedar.com). Drilling to date has traced the Aurora B mineralized surface approximately 150 metres along strike and 150 metres down-dip, with this zone being approximately 200 metres from existing mine infrastructure. The Aurora B East Flank target remains a high priority growth opportunity for Newmarket, as the West Flank of the Stawell gold system has produced over 2.3 million ounces of gold over 30 years of continuous mining, whereas the East Flank, where the Aurora B discovery is located, has no recorded production. A fourth phase of drilling is underway to expand this Inferred Mineral Resource by targeting the along strike potential and to allow for the project to be assessed as a new mining front for the Stawell Mine. Historic drilling of the Aurora A discovery on the East Flank of the Magdala Basalt, 600 m below the Aurora B discovery has returned high-grade gold intercepts including 5.4 m grading 13.7 g/t and remains open for expansion.

Cosmo Gold Mine and Northern Territory ("NT")

The Cosmo Gold Mine, located in the NT, reported a 32% decline in its underground year-end Mineral Reserves from 2014 to 101,300 ounces of gold (932,000 tonnes at an average grade of 3.38 g/t). The decline is mainly due to the reduction in the mineralization around the Footwall zone in the 100 to 300 lodes which have had the largest proportion of ounces mined at Cosmo over the last two years. During the second half of 2015, step-out exploration drilling focused on down plunge extensions of the Sliver Lode and Eastern Deeps to increase confidence in the continuation of mineralization at depth. Additionally, a total of 18 drill holes have been completed on the new Western Lode discovery which is only 160 metres from mine infrastructure. Step-out drilling results on the Sliver Lode and Eastern Deeps targets, and drilling on the Western Lode, are not included in year-end Mineral Reserves and Resources as these targets require additional infill drilling, which is the focus moving forward in 2016. Drilling of these high priority targets is ongoing, and will soon move to a dedicated exploration drill platform on the 640 metre level which is currently being developed.

Drilling completed in late 2015 on the Esmeralda gold deposit, included in the NT Mineral Resources, resulted in the definition of an Indicated Mineral Resource of 37,300 ounces of gold (558,000 tonnes at 2.08g/t). This has allowed for the development of a Mineral Reserve of approximately 12,700 ounces of gold for the project which is currently going through the mining approval process. The Esmeralda gold deposit is located 6 km north of Newmarket's Union Reef mill with this oxide resource being amenable for open pit mining. The Esmeralda deposit could provide mill feed to the Union Reefs mill which has approximately 1.2 million tonnes of excess milling capacity.

Maud Creak Gold Project, NT

Maud Creek Mineral Reserves reported as at December 31, 2014 were not included in the 2015 Mineral Reserves classification due to the new mining and processing options being proposed as part of a Preliminary Economic Assessment ("PEA") for the Maud Creek project. SRK Consulting is currently working on completing the PEA due for release in early Q2 2016 with the study assessing both standalone and Union Reef milling options for the development of the project.

As part of the 2015 Mineral Resource and Reserve statement, the Maud Creek Technical Report was completed for the Maud Creek project and the estimates from this report will be incorporated in the upcoming PEA. As a result, a new Measured Mineral Resource of 190,000 ounces of gold (1,070,000 tonnes at 5.60 g/t) has been estimated. Overall, Measured and Indicated Mineral Resources have decreased at Maud Creek by 17% to 724,000 ounces grading 3.46 g/t due to greater definition of geological and structural controls on mineralization resulting in a more accurate Mineral Resource estimate for the deposit.

Mineral Reserve Summary by Asset and Highlights

(Detailed Mineral Reserve and Mineral Resource tables follow at the end of this press release)

On a consolidated basis, Newmarket's Mineral Reserves increased 2.4% year-over-year to 769,000 ounces, supported by the 34% increase in Proven and Probable Mineral Reserves at Fosterville. One of the main drivers for the increase at Fosterville has been the inclusion of the newly identified, high-grade, visible gold-bearing Eagle Fault Zone which has contributed approximately 18% of Fosterville's total year-end Mineral Reserves inventory.

Including development projects, consolidated Mineral Reserves declined 18% mainly due to the removal of the Maud Creek Mineral Reserves as discussed above.

Mineral Resources Summary by Asset and Highlights:

• Consolidated Measured and Indicated Resources remain stable after mining depletion at approximately 4.7 million ounces of gold year-over-year, with a 3% increase in average grade to 2.91 g/t.
  
  
• Successful growth exploration results achieved across several sites in 2015 resulted in increased Measured and Indicated Resources at Fosterville, a new Indicated Mineral Resource at the Esmeralda gold project, a maiden Inferred Mineral Resource for the Aurora B project at Stawell, and the reclassification of the Maud Creek Measured Mineral Resource.
  
  
• As part of the 2015 Mineral Resource and Reserve statement, the Maud Creek Technical Report was completed for the Maud Creek project and the estimates from this report will be incorporated in the upcoming PEA. As a result, a new Measured Mineral Resource of 192,000 ounces of gold (1,067,000 tonnes at 5.59 g/t) has been estimated. Overall, Measured and Indicated Mineral Resources have decreased at Maud Creek by 17% to 721,000 ounces grading 3.46 g/t due to greater definition of geological and structural controls on mineralization resulting in a more accurate Mineral Resource estimate for the deposit.
  
  

Technical Reports

The following Technical Reports prepared in accordance with National Instrument 43-101 supporting the 2015 Mineral Reserve and Mineral Resource estimates will be available today under Newmarket's profile at www.sedar.com

• Report on the Mineral Resources & Mineral Reserves of the Fosterville Gold Mine, Victoria, Australia, dated March 21, 2016 and effective December 31, 2015 and prepared by Troy Fuller, BSc Hons, MAIG, Fosterville Gold Mine Geology Manager and Ion Hann, BEng (Mining), FAusIMM, Fosterville Gold Mine Mining Manager (the "Fosterville Technical Report");
  
  
• Report on the Mineral Resources & Mineral Reserves of the Northern Territory Operations in the Northern Territory, Australia, dated March 21, 2016 and effective December 31, 2015 and prepared by Murray Smith, BEng (Mining), MAusIMM (CP), Principal Mining Consultant for Mining Plus Pty Ltd and Mark Edwards, BSc, MAusIMM (CP), MAIG, General Manager Exploration for Newmarket (the "Northern Territory Technical Report");
  
  
• Report on the Mineral Resources & Mineral Reserves of the Stawell Gold Mine in the State of Victoria, Australia, dated March 21, 2016 and effective December 31, 2015 and prepared by Wayne Chapman, BEng (Mining), MAusIMM (CP), Technical Manager for Newmarket Gold, Justine Tracey, BScH (Geology), MAusIMM (CP), Senior Resource Geologist for Newmarket and Mark Edwards, BSc, MAusIMM (CP), MAIG, General Manager Exploration for Newmarket (the "Stawell Technical Report"); and
  
  
• Technical Report Mineral Resources of the Maud Creek Gold Project, Northern Territory, Australia dated March 21, 2016 and effective December 31, 2015 and prepared by Peter Fairfield, BEng (Mining), FAusIMM, CP (Mining), Principal Consultant for SRK Consulting (Australia) Pty Ltd and Danny Kentwell, MSc Mathematics & Planning (Geostatistics), FAusIMM, Principal Consultant for SRK Consulting (Australia) Pty Ltd (the "Maud Creek Technical Report").
  
  

Qualified Person

Mark Edwards, MAusIMM (CP), MAIG, General Manager, Exploration, Newmarket, 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.

ON BEHALF OF THE BOARD

"Douglas Forster"

Douglas Forster, M.Sc., P.Geo.

President & Chief Executive Officer

About Newmarket Gold Inc.

Newmarket is a Canadian-listed gold mining and exploration company with three 100% owned operating mines across Australia. The Company is focused on creating substantial shareholder value by maintaining a strong foundation of quality gold production, over 200,000 ounces annually, generating operating cash flow and maintaining a large resource base as it executes a clearly defined gold asset consolidation strategy. The Company is focused on sustainable operating performance, a disciplined approach to growth, and building gold reserves and resources while maintaining the high standards that the Newmarket core values represent.

Cautionary Note Regarding Forward Looking Information

Certain information set forth in this news release contains "forward-looking statements", and "forward-looking information under applicable securities laws. Except for statements of historical fact, certain information contained herein constitutes forward-looking statements, which include the Company's expectations about its business and operations, and are based on the Company's current internal expectations, estimates, projections, assumptions and beliefs, which may prove to be incorrect. Some of the forward-looking statements may be identified by words such as "will", "expects", "anticipates", "believes", "projects", "plans", and similar expressions. These statements are not guarantees of future performance or outcomes and undue reliance should not be placed on them. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements or forward-looking information. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. The Company does not undertake to update any forward-looking statements or forward-looking information that are included in this press release or incorporated by reference herein, except in accordance with applicable securities laws.

Contact

Laura Lepore
Director, Investor Relations
Newmarket Gold Inc.
416.847.1847
416.847.1847
llepore@newmarketgoldinc.com
Ryan King
VP, Corporate Communications
604.559.8040
rking@newmarketgoldinc.com
www.newmarketgoldinc.com