Majestic Gold Corp. Reports 2018 Q3 Results

Vancouver, British Columbia (FSCwire) - Majestic Gold Corp. (“Majestic” or the “Company”) (TSX.V: MJS, FSE: A0BK1D) reports its financial and operational results for the third quarter ended June 30, 2018.  This release should be read in conjunction with the Company’s unaudited condensed consolidated interim financial statements and associated management discussion and analysis (“MD&A”) for the same period that are available on SEDAR (www.sedar.com) and www.majesticgold.com.  The following financial results are expressed in US dollars unless otherwise stated.

OVERVIEW

• The Company produced 7,690 ounces of gold for the third quarter of fiscal 2018, a 10% increase in production over the 2017 comparative quarter. For the nine months ended June 30, 2018, the Company produced 23,037 ounces of gold, a 24% increase over the 2017 comparative period;

• Gold revenue for the third quarter of fiscal 2018, was $10.4 million from sales of 7,729 ounces at an average gold price of $1,349 per ounce, compared to gold revenue of $8.1 million from sales of 6,430 ounces at an average realized gold price of $1,261 per ounce for the 2017 comparative quarter. Gold revenue for the nine months ended June 30, 2018 was $27.3 million (2017 - $21.6 million);

• Cash operating costs for the third quarter of fiscal 2018 were a $679 per ounce, compared to $690 for the 2017 comparative quarter. Cash operating costs for the nine months ended June 30, 2018, were $649 per ounce, $102 per ounce (or 14%) lower over the 2017 comparative period;

• All-in sustaining costs (“AISC”) for the third quarter of fiscal 2018 were $799 per ounce, a $10 per ounce (or 1%) increase over to the 2017 comparative quarter. AISC for the nine months ended June 30, 2018, were $761 per ounce, $102 per ounce (or 12%) decrease over the 2017 comparative period;

• Cash flow from operating activities was $8,886,880 for the nine months ended June 30, 2018, up 404% from $1,763,650 for the 2017 comparative period;

• Gross profit for the third quarter of fiscal 2018 was $4,178,110 (2017 Q3- $2,944,197). Gross profit for the nine months ended June 30, 2018, was $11,088,382 (2017 – $6,583,370);

• Net profit for the third quarter of 2018 was $2,341,572, a 59% increase over the 2017 comparative quarter (2017 Q3 - $1,477,267). Net profit for the nine months ended June 30, 2018, was $6,307,034, a 98% increase over the 2017 comparative period (2017 – $3,182,823);

• Majestic’s adjusted EBITDA was $4,450,572 for the third quarter of 2018 (2017 Q3 - $3,135,886). Refer to pages 14-15 of the MD&A for the computation of this Non-IFRS financial measure;

• Tonnes milled for the third quarter of fiscal 2018 were 381,557 tonnes (2017 Q3 – 366,240) with an average head grade of 0.65 g/t (2017 Q3 – 0.58 g/t) and recovery rate of 96% (2017 Q3 - 95%); and

• Issued 25,000,000 shares pursuant to the exercise of 25,000,000 share purchase warrants at an exercise price of CAD$0.155 per share purchase warrant for proceeds of CAD$3,875,000 ($2,933,375).

FINANCIAL INFORMATION

(1)  See “Additional Non-IFRS Financial Measures” on pages 14-15 of the Company’s MD&A.

(2)  “Gross profit” represents total revenues, net of cost of goods sold.

About Majestic Gold

Currently focused solely in China, Majestic Gold Corp. is a British Columbia based company engaged in commercial gold production at the Songjiagou Gold Mine in eastern Shandong Province, China. Additional information on the Company and its projects is available at www.sedar.com and on the Company’s website at www.majesticgold.com.

For further information, please contact:

Stephen Kenwood, P.Geo., President and CEO

Telephone: (604) 560-9060

Email: info@majesticgold.com

Website: www.majesticgold.com

Cautionary Notes

Certain statements contained herein may constitute forward €looking statements and are made pursuant to the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995 and Canadian securities laws. Forward €looking statements are statements which relate to future events. Such statements include estimates, forecasts and statements as to management's expectations with respect to, among other things, business and financial prospects, financial multiples and accretion estimates, future trends, plans, strategies, objectives and expectations, including with respect to production, exploration drilling, reserves and resources, exploitation activities and events or future operations. Information inferred from the interpretation of drilling results and information concerning mineral resource estimates may also be deemed to be forward-looking statements, as it constitutes a prediction of what might be found to be present when, and if, a project is actually developed.

In some cases, you can identify forward €looking statements by terminology such as "may", "should", "expects", "plans, "anticipates", believes", "estimates", "predicts", "potential", or "continue" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, level of activity, performance or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward €looking statements.

While these forward €looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggestions herein. Except as required by applicable law, Majestic does not intend to update any forward €looking statements to conform these statements to actual results.

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