Q2 2016 Financial Results July 29, 2016 1 Forward Looking - - PowerPoint PPT Presentation

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TSX:NMI OTCQX:NMKTF

Q2 2016 Financial Results July 29, 2016

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Forward Looking Statements

Certain informa?on set forth in this presenta?on contains “forward-looking statements”, and “forward-looking informa?on under applicable securi?es

• laws. Except for statements of historical fact, certain informa?on contained herein cons?tutes forward-looking statements, which include the

Company’s expecta?ons about its business and opera?ons, and are based on the Company’s current internal expecta?ons, es?mates, projec?ons, assump?ons and beliefs, which may prove to be incorrect. Some of the forward-looking statements may be iden?fied by words such as “will”, “expects”, “an?cipates”, “believes”, “projects”, “plans”, and similar expressions. These statements are not guarantees of future performance or

• utcomes and undue reliance should not be placed on them. Forward-looking statements are based on the opinions and es?mates of management as
• f the date such statements are made and they are subject to known and unknown risks, uncertain?es and other factors that may cause the actual

results, level of ac?vity, performance or achievements of the Company to be materially different from those expressed or implied by such forward- looking statements or forward-looking informa?on. Although management of the Company has aTempted to iden?fy important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking informa?on, there may be other factors that cause results not to be as an?cipated, es?mated 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 an?cipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking informa?on. The Company does not undertake to update any forward-looking statements or forward- looking informa?on that are included in this presenta?on or incorporated by reference herein, except in accordance with applicable securi?es laws. All amounts are presented in United States dollars ("$") unless otherwise stated. References in this document to “C$” are to Canadian dollars and references to "A$" are to Australian dollars. Certain non-IFRS measures are included in this presenta?on, including opera?ng cash cost per ounce, all-in sustaining costs (“AISC”) per ounce, and

• pera?ng cash cost per tonne milled in Australian dollars. In the gold mining industry, these are common performance measures but may not be

comparable to similar measures presented by other issuers. Newmarket Gold believes that these measures, in addi?on to that informa?on prepared in accordance with IFRS, provides investors with useful informa?on to evaluate the Company’s performance and ability to generate cash flow from its

• pera?ons. Accordingly, it is intended to provide addi?onal informa?on and should not be considered in isola?on or as a subs?tute for measures of

performance prepared in accordance with IFRS. For further informa?on, refer to the “Non-IFRS Measures” sec?on of the latest quarterly MD&A. Qualified Person Mark Edwards, MAusIMM (CP), MAIG, General Manager, Explora?on, Newmarket Gold, is a "qualified person" as such term is defined in Na?onal Instrument 43-101 and has reviewed and approved the technical informa?on and data included in this presenta?on

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Q2 2016 CEO Highlights

1) Opera?ng Cash Costs and All-in sustaining costs (“AISC”) refer Non-IFRS Measures on slide 23 (All figures are in United States (“US”) dollars, unless otherwise stated)

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2016 Corporate Guidance Revision: Increased full year 2016 consolidated produc?on guidance to 225,000 – 235,000 ounces, following record quarterly produc?on from Fosterville, while lowering consolidated All-In Sustaining Costs (“AISC”) to $900 - $975 per ounce sold.

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Strong Cash PosiBon: with $69.9 million as at June 30, 2016, a 91% increase YTD

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GeneraBng Free Cash Flow: Opera?ng cash flow for Q2 2016 of $31.0 million or $0.18 per share based on basic weighted average number of shares outstanding, based on revenue of $78.0 million from 62,223 ounces sold. Free cash flow of $17.4 million based

• n opera?ng cash flow less capital expenditures of $13.6 million, aner inves?ng $3.6 million into growth programs in Q2 2016.

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Record Quarterly Mine OperaBng Income: Q2 2016 Mine Opera?ng Income of $28.1 million, up 60% from Q1 2016, the result of record quarterly consolidated gold produc?on of 61,191 ounces.

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Record Consolidated Quarter OperaBng Cash Cost & Low AISC: Q2 2016 Opera?ng cash costs per ounce sold of $673 and AISC per ounce sold of $937.

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Record Quarterly Performance at Flagship Fosterville Gold Mine: Gold produc?on of 37,245 ounces, record average mill grade of 7.50 g/t Au and record recovery of 90.8% supported by the successful commissioning of the new gravity gold circuit.

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Fosterville Achieves Record Low Quarter OperaBng Cost & Low AISC: Q2 2016 Opera?ng cash cost per ounce sold of $440 & AISC per ounce sold of $741.

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Increased Net Income: $16.8 million or $0.10 Basic EPS in Q2 2016, including the impact of $2.3 million in share based compensa?on expense ?ed to the 76% increase in the share price of the Company on the TSX Exchange in Q2 2016.

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Q2 2016 Strong Financial Posi?on

— Cash Posi?on of $69.9 million, an increase of

$17.8 million from Q1, 2015

— Reflec?ng Free Cash Flow of $17.4 million

during Q2 2016

— Working Capital of $56.3 million, up from $22.3

million at Q4 2015

— Essen?ally debt-free with only $2.8 million in

debt (majority is capital lease obliga?ons)

(All figures are in United States (“U.S.”) dollars, unless stated otherwise)

Cash Balance ($ million ) $69.9 Working Capital (incl. cash)($ million) $56.3 Debt ($ million) $2.8 TSX: NMI OTCQX: NMKTF

Balance Sheet (June 30th, 2016)

Issued and Outstanding (million) 177.7 Op?ons & PSU’s (million) 13.2 Warrants 0.4 Fully Diluted (million) 191.3 Luxor Capital Group LP 19.3% Eric SproT ~15% Management/Board (basic) 7.4%

Capital Structure & Ownership (June 30th, 2016)

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Q2 Growth Opportunity – Maud Creek

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Maud Creek Gold Project Preliminary Economic Assessment (“PEA”) delivered strong project economics including a Pre-tax NPV5% of AUD$201 million (US$155 million) and IRR of 116% and a 1.25 year payback

• period. Base case parameters include u?liza?on of the permiTed and opera?ng Union Reef Mill and a AUD

$1,550/oz gold price (US$1,200/oz) (see Newmarket Press Release dated May 18, 2016).

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Next Steps – Company is reviewing op?ons to move the project forward including a tender process to proceed to a full feasibility study

(All figures are in United States (“U.S.”) dollars, unless stated otherwise)

Parameter/ Result QuanBty

Pre-Tax NPV (5%) AUD$201 million (US$155 million) Pre-Tax IRR 116% Aner-Tax NPV (5%) AUD$137 million (US$105 million) Aner Tax IRR 80% Pay Back Period 1.25 years Pre-produc?on Capital Cost AUD$42 million (~US$32 million) Mine Life 9.5 years LOM Gold Grade (Diluted Au Grade) 4.2 g/t Au LOM Recovered Gold 496,000 ounces Average Annual Produc?on 52,000 ounces LOM Cash Opera?ng Cost AUD$822 per ounce (US$632 per ounce)

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Fosterville Mine Drilling Success

Harrier Drill Drive

12.5 g/t Au over 2.4m 12.75 g/t Au over 4.5m

Lower Phoenix

Drill Targets NORTH SOUTH

Mineral Resources, Reserves and MINING as at December 31, 2015

Harrier Decline Harrier

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Consistently intersecBng high grade gold in mulBple zones; Harrier, Lower Phoenix, Lower Phoenix South and Lower Phoenix North.

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Grade increasing with depth

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8 Drill rigs in operaBon

4.4 g/t Au

• ver 6.1m

6.5 g/t Au over 4.2m 9.3 g/t Au over 3.3m 6,000mN 9.2 g/t Au

• ver 11.8m

7.3 g/t Au

• ver 13.9m

8050mN

6.2 g/t Au over 1.9m

22.1 g/t Au over 3.3m

First recorded visual Gold from Harrier 10.3 g/t Au over 3.3m 16.6 g/t Au

• ver 3.05m

11.99 g/t Au over 3.4m 14.25 g/t Au over 3.6m 11.1 g/t Au over 4.9m 12.8 g/t Au over 8.5m 112 g/t Ay over 11.9m 645 g/t Au over 3.4m 501 g/t Au over 4.5m 386 g/t Au (VG) over 3.4m 16.4 g/t Au (VG) over 16.5m 73.2 g/t Au (VG) over 7.8m 14.25 g/t Au over 3.6m (EsBmated True Width)

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Fosterville Mine Life Expansion

Lower Phoenix Phoenix NORTH SOUTH

Mineral Resources, Reserves and MINING as at December 31, 2015

Harrier Decline Harrier

6,000mN

BLOCK A BLOCK C BLOCK D Harrier Drill Drive 1km step-out drilling H2/2016 drill results 5,450mN BLOCK B

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Current UG Reserve 244,000 ounces at 6.95g/t Au with Measured and Indicated resources of 673,000 ounces at 8.33 g/t Au and Inferred Resources of 101,000 ounces at 9.49 g/t Au as of Dec 20151

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With addiBonal drilling success blocks A,B, C and D are targeted to add +5 years of addiBonal reserves on top of current reserves and resources (Block B drilling underway tesBng 1000 metres down plunge from current resources/reserves)

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Grade increasing with depth at Harrier, converBng resources to reserves and growing resources, 8 drill rigs operaBng

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Mill Capacity +850k tpa, currently uBlizing ~700k tpa. Opportunity to open addiBonal mining fronts (three total) in Block A and Block D

= Visual gold elevaBon depth, increasing with depth Current Mining Front

8050mN (1) For updated Mineral Reserves and Mineral Resources refer to press release dated March 21, 2016. For detailed gold-bearing structures comprising the Phoenix and Lower Phoenix gold systems, see appendix

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Q2 2016 OperaBng Results

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Fosterville Gold Mine

Q2 2016 Highlights

• Record gold produc?on of 37,245oz, up 26% over Q2 2015
• Record mill grade of 7.50 g/t Au
• Record mill recovery of 90.8%
• Commissioned gravity circuit, recovering 17% of Q2 gold
• Q2 2016 Opera?ng cash costs* of $440/oz & AISC* of $741/oz
• Purchased a haul truck to replace an older, lower capacity,

higher cost unit and commiTed to 2 addi?onal replacements in Q3 as part of a longer term fleet op?miza?on strategy 29,648 32,793 31,519 33,138

Q2/15 Q3/15 Q4/15 Q1/16 Q2/16

*See Non-IFRS Disclosures, OperaQng Cash Costs per ounce and AISC per ounce reflect an average FX rate of $0.75

Commissioning of the Fosterville Gravity Circuit

(All figures are in United States (“U.S.”) dollars, unless stated otherwise)

37,245

2016 Goals

• Con?nued investment in explora?on programs targe?ng

increasing mineral resources & reserves to extend mine life

• Revised 2016 Produc?on Guidance: 130,000 – 140,000 oz*
• Revised 2016 Opera?ng Cash Costs: $450 - $525/ oz*

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Cosmo Gold Mine

17,073 12,672 12,898 16,340 15,442 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16

2016 Goals

• Con?nue improving opera?ng performance
• Focus on building resources and reserves including progressing

Western Lodes Hinge and Eastern Deeps discoveries

• Progress Maud Creek feasibility tender process
• Revised 2016 Produc?on Guidance ~60,000 oz
• Revised 2016 Opera?ng Cash Cost Guidance $975 - $1,050 / oz*(1)

Q2 2016 Highlights

• Gold produc?on of 15,442 oz
• Record Q2 mill recovery of 94.2%
• H1 gold produc?on 31,782 oz, a 24% increase over H2 2015 due to

higher grade, reflec?ng a combina?on of mine sequencing, and mill recovery Cosmo Access Portal

(All figures are in United States (“U.S.”) dollars, unless stated otherwise)* See Non-IFRS Disclosures, (1) OperaQng Cash Costs per ounce and AISC per ounce reflect an average FX rate of $0.75

11 9,277 8,352 8,762 8,579 8,504 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16

Stawell Gold Mine

2016 Goals

• Con?nue to operate in a sustainable way
• Advance Aurora B discovery, mineraliza?on remains open for

poten?al expansion, 2 drills in opera?on

• Work with regulators to establish a path forward for Big Hill
• Revised 2016 Produc?on Guidance ~35,000 ounces
• Revised 2016 Opera?ng Cash Cost Guidance $1,050 - $1,125 *(1)

Q2 2016 Highlights

• Gold produc?on of 8,504 ounces
• 225,265 tonnes milled tonnes at an average grade of 1.48 g/t Au and

79.3% recovery

• Con?nue to operate sustainably on streamlined opera?ng ac?vi?es

from the upper levels in the underground mine and supplemented

• xide stockpiles, with reduced manpower
• 343 drill drive completed, two drill rigs opera?ng targe?ng Aurora B

gold discovery expansion Stawell Gold Mine

(All figures are in United States (“U.S.”) dollars, unless stated otherwise)* See Non-IFRS Disclosures, (1) OperaQng Cash Costs per ounce and AISC per ounce reflect an average FX rate of $0.75

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Q2 2016 Financial Results

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Financial Results (000’s US$ except per share amounts) Q2 2016 Q2 2015 YTD 2016 YTD 2015

Gold ounces produced 61,191 55,998 119,248 115,674 Gold ounces sold 62,223 55,154 120,019 116,447 Revenue 78,039 66,044 144,094 138,941 Cost of opera?ons, including royalty expense (41,962) (37,649) (82,511) (79,622) Deple?on and deprecia?on (7,991) (8,877) (15,944) (20,039) Mine opera?ng income 28,086 19,518 45,639 39,280 Net income (loss) 16,760 12,072 23,223 27,775 Net income (loss) per share($/share) basic 0.10 0.10 0.14 0.24 Opera?ng Cash Flow 30,999 27,073 49,300 54,559 Capital Expenditures 13,643 17,158 23,078 30,618

Gold Price and Cost per Ounce (US$) Q1 2016 Q2 2015 YTD 2016 Q1 2015

Average realized gold price 1,253 1,196 1,199 1,190 Opera?ng cash costs per ounce sold2 673 681 686 682 All-in sustaining cash costs per ounce sold2,3 937 1,037 923 985

Financial Results Q2 2016 All figures are in United States (“U.S.”) dollars, unless stated otherwise

1. Higher weighted average number of shares outstanding during Q2/16 of 176.3M (basic) 2. See Non-IFRS Disclosures 3. All-In Sustaining Cash Costs per Ounce ("AISC") Includes Corporate General and Administra?ve Expenses.

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Q&A

Visual Gold Fosterville Gold Mine

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Douglas Forster

President & CEO, Director

T: 604-559-8040 E: dforster@newmarketgoldinc.com

TSX: NMI www.newmarketgoldinc.com

Contact Us

Ryan King

Vice President, Investor RelaBons

T: 778-998-3700 E: rking@newmarketgoldinc.com

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APPENDIX

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Appendix: Mineral Resources (Dec 31. 2015)

Source: Newmarket Gold March 21, 2016 press release announcing 2015 year-end mineral reserves and mineral resources Note: Mineral Resources are inclusive of Mineral Reserves. Mineral Resources have been rounded to 1,000 tonnes, 0.01 g/t Au and 1,000 ounces. Minor discrepancies in summaQon may occur due to rounding. Mineral Resources are stated as of Dec 31, 2015. Gold Price A$ 1,500/oz used. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.

• 1. Newmarket Gold announced a Preliminary Economic Assessment on the Maud Creek Gold Project May 16, 2016. A NI 43-101 Technical Report is available at www.newmarketgoldinc.com and under the companies profile on sedar.ca.

The Maud Creek Mineral Resources summarize both the open pit and underground resource esQmates as included in the PEA. The open pit Mineral Resource is exclusive of the underground mineral resource and reported at a 0.5g/t cut-

• ff grade. The underground Mineral Resource is exclusive of the open pit Mineral Resource and reported at a 1.5g/t cut-off grade.

Measured Tonnes (kt) Gold Grade (g/t) Oz Gold (kOz) Fosterville UG 2,086 3.25 218 Fosterville Tailings 571 7.83 144 Cosmo 1,650 3.63 193 Stawell UG 56 2.56 5 Maud Creek1 1,067 5.59 192 Total Measured 5,430 4.29 752 Indicated Tonnes (kt) Gold Grade (g/t) Oz Gold (kOz) Fosterville UG 12,950 4.57 1,904 Cosmo 2,987 2.99 288 Stawell UG 669 3.49 75 Stawell Op 3,394 1.52 166 Burnside 7,358 1.36 322 Union Reefs 3,579 2.38 273 Pine Creek 8,393 1.41 379 Maud Creek1 5,426 3.04 532 Total Indicated 44,756 2.74 3,939 Total (M&I only) 50,193 2.91 4,691 Inferred Tonnes (kt) Gold Grade (g/t) Oz Gold (kOz) Fosterville UGa 5,073 4.08 665 CosmoC 678 2.76 60 Stawell UGd 1118 3.24 116 Stawell Opf 46 1.15 2 Burnsideg 6,820 1.46 321 Union Reefsh 3,342 2.3 247 Pine Creeki 2,540 2.34 191 Maud Creeke,1 1,980 2.32 149 Total Inferred 21,597 2.52 1,751

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Appendix: Mineral Reserves (Dec 31. 2015)

2P Reserves Tonnes (Mt) Grade Au (g/t) Au (kozs) Fosterville (Under Ground) 1.09 6.95 244 Fosterville (Tailings) 0.57 7.83 144 Cosmo 0.93 3.38 101 Stawell (Under Ground) 0.35 2.45 28 Stawell (Open Pit) Big Hill 3.12 1.36 138 Union Reefs (Under Ground) 0.27 4.42 39 Union Reefs (Open Pit) 0.24 1.61 12 Pine Creek 1.3 1.55 62

Total Proven & Probably Reserves 7.8 3.05 769

Source: Newmarket Gold March 21, 2016 press release announcing 2015 year-end mineral reserves and mineral resources Note: Mineral Resources have been rounded to 1,000 tonnes, 0.01 g/t Au and 1,000 ounces. Minor discrepancies in summaQon may occur due to rounding. Mineral Reserves have demonstrated economic viability. Processing Recoveries range between 88% and 93%, excluding Fosterville Tailings which expects recoveries of 25% (see reports for details). Mining Recoveries range from 85% and 95% (see reports for details). Gold Price of $A1,450/Oz used. Mineral Reserves as of December 31, 2015. Mining DiluQon ranges from 5% to 20% (see reports for details).

AddiQonal InformaQon Notes for Pages 24-26: For informaQon regarding mineral resource and reserve esQmates, including parameters used to generate the esQmates and depleQon, please see the technical reports Qtled: NI43-101 TECHNICAL REPORT FOSTERVILLE GOLD MINE, VICTORIA, AUSTRALIA PREPARED FOR NEWMARKET GOLD INC dated March 21, 2016 and; NI43-101 TECHNICAL REPORT – BIG HILL ENHANCED DEVELOPMENT PROJECT AT STAWELL GOLD MINE MINERAL RESOURCES & RESERVES PREPARED FOR CROCODILE GOLD CORP dated June 6, 2014. For the Northern Territory Mineral Reserve EsQmates please refer to the technical reports Qtled: REPORT ON THE MINERAL RESOURCES & MINERAL RESERVES OF THE COSMO DEEPS GOLD PROJECT dated March 21, 2016; NI 43-101 TECHNICAL REPORT STAWELL GOLD MINE, VICTORIA, AUSTRALIA PREPARED FOR NEWMARKET GOLD INC dated March 21, 2016; REPORT ON THE MINERAL RESOURCES & MINERAL RESERVES OF THE UNION REEFS GOLD PROJECT dated December 31, 2012; REPORT ON THE MINERAL RESOURCES & MINERAL RESERVES OF THE PINE CREEK GOLD PROJECT dated December 31, 2012;Technical Report Preliminary Economic Assessment of the Maud Creek Gold Project, Northern Territories, Australia dated May 18, 2016 and; REPORT ON THE MINERAL RESOURCES & MINERAL RESERVES OF THE BURNSIDE GOLD AND BASE METAL PROJECT dated December 12, 2013. All reports available on Sedar under the Newmarket Gold Inc. profile or on www.newmarketgoldinc.com Mineral resources that are not mineral reserves do not have demonstrated economic viability.

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ClassificaBon Structure Measured Indicated Inferred Tonnes Grade In situ Gold Tonnes Grade In situ Gold Tonnes Grade In situ Gold (kt) g/t Au (kOz) (kt) g/t Au (kOz) (kt) g/t Au (kOz) Allwood* Lower Phoenix 5 5.59 1 110 6.30 22 170 6.48 36 Eagle* Lower Phoenix 23 16.76 12 178 10.97 63 43 27.21 37 East Dippers* Lower Phoenix 1 6.85 544 9.79 166 27 16.12 14 Ellesmere

• 331

5.73 61 20 3.39 2 Harrier

• 48

3.96 6 25 3.62 3 Kestrel 6 6.69 1 960 4.70 145 175 5.13 29 Lower Phoenix* Lower Phoenix 64 7.68 16 495 8.75 139

• Lower Phoenix* FW

Lower Phoenix 37 10.38 12 278 8.16 73 34 4.89 5 Phoenix* Phoenix 151 7.58 37 627 6.54 132 59 4.89 9 Raven

• 119

8.12 31

• Robin
• 68

8.39 18

• Splays
• 912

5.74 169 298 3.98 38 Vulture

• 517

5.04 84 635 4.56 93 Stockpile# 27 4.65 4

• Total Sulphide

315 8.29 84 5,188 6.65 1,109 1,488 5.58 267

Notes: *Fosterville’s underground Measured and Indicated Mineral Resources include resources in the exisBng mining fronts in the Phoenix and Lower Phoenix gold system of 673,000 ounces grading 8.33 g/t Au. For the Mineral Resource esBmate, the Qualified Person is Troy Fuller, MAIG, Geology Manager for Newmarket The Mineral Resources reported are inclusive of the Mineral Reserves for the same area. Lower cut-off grade of 3.0 g/t is applied to Lower Sulphide Mineral Resources below 5050mRL. Mineral Resources are rounded to 1,000 tonnes, 0.01 g/t Au and 1,000 ounces. Minor discrepancies in summaBon may occur due to rounding. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. The Mineral Resource esBmate used a gold price of A$1,500 per ounce. #Stockpile Inventory includes Lower Central Area Mineral Resources contained within the Run of Mine Stockpile and Coarse Ore Stockpile as at 31st December 2015

Appendix: Mineral Resources (Dec 31. 2015)

Fosterville Central Area Lower Sulphide Mineral Resources (Inclusive of Mineral Reserves) below 5050mRL – as at Dec. 31, 2015

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Quarterly Opera?ng Results

OperaBng Results Q2 2016 Q2 2015 Q1 2016 Q4 2015

Consolidated Gold Produced (oz) 61,191 55,998 58,057 53,179 Consolidated Gold Grades (g/t) 3.75 3.31 3.63 3.30 Consolidated Recoveries (%) 89.8% 88.0% 86.8% 84.0% Fosterville Gold Mine Ore Milled (Tonnes) 169,884 173,323 161,868 179,450 Average Grade (g/t Au) 7.50 5.92 7.34 6.33 Recovery (%) 90.8% 89.0% 86.8% 86.3% Gold Produced (oz) 37,245 29,648 33,138 31,519 Cosmo Gold Mine Ore Milled (Tonnes) 169,252 193,084 181,025 180,261 Average Grade (g/t Au) 3.01 2.97 3.09 2.56 Recovery (%) 94.2% 92.7% 90.7% 86.9% Gold Produced (oz) 15,442 17,073 16,340 12,898 Stawell Gold Mines Ore Milled (Tonnes) 225,265 221,974 229,558 227,229 Average Grade (g/t Au) 1.48 1.57 1.43 1.50 Recovery (%) 79.3% 83.1% 79.9% 80.0% Gold Produced (oz) 8,504 9,277 8,579 8,762

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Stawell Mine Aurora B Discovery Sec?on

East Flank Target Aurora B East Flank Target Aurora A Tradi?onally mined West Flank Total produc?on to date 2.3 million ounces

8.03 g/t gold over 8.8 m 7.06 g/t gold over 17.80 m

Magdala

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Cosmo Mine Discovery (Close to Infrastructure)

Western Limb

0 100 metres

Western Lode Target Sliver Target 7.42 g/t gold over 4.3 m 6.59 g/t gold over 6.4 m

Cosmo Long SecBon

14.79 g/t gold over 11.4 m, 14.07 g/t gold over 6.4 m 5.85g/t gold over 5.7 m 10.25 g/t gold over 2.8 m

• Inc. 6.4 g/t gold over 3.1 m

The Cosmo Eastern Deeps drilling has idenBfied mineralizaBon approximately 200 m down plunge from the base of current resources

WESTERN LODE PLAN MAP EASTERN DEEPS SECTION

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Union Reefs mill has 1.2Mt of excess capacity to treat additional ore

A B

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Non-IFRS and Addi?onal Informa?on

Non-IFRS Measures Newmarket Gold believes that investors use certain indicators to assess gold mining companies. The indicators are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance in accordance with the International Financial Reporting Standards. “Operational Cash Costs per Ounce” is a non-IFRS performance measure which could provide an indication of the mining and processing efficiency at the operations. The Company calculates operating cash costs per ounce by deducting silver sales revenue as a by-product from operating expenses per the consolidated statement of

• perations, then dividing by the gold ounces sold during the applicable period. Operating expenses include mine site operating costs such as mining, processing and

administration as well as royalties, however excludes depletion and depreciation, share-based payments and rehabilitation costs. There are variations in the method of computation of “operational cash costs per ounce” as determined by the Company compared with other mining companies. For more detail on the operational cash costs per ounce determination for Newmarket Gold, please visit www.sedar.com or www.newmarketgoldinc.com and review the latest Annual Financial Statements. “All-In Sustaining Costs per Ounce of Gold (“AISC”)” Effective December 31, 2013, the Company has adopted an all-in sustaining cost (“AISC”) performance measure that reflects all of the expenditures that are required to produce an ounce of gold from current operations. While there is no standardized meaning of the measure across the industry, the Company’s definition conforms to the AISC definition as set out by the World Gold Council in its guidance dated June 27, 2013. The World Gold Council is a non-regulatory, non-profit organization established in 1987 whose members include global senior mining companies. The Company believes that this measure will be useful to external users in assessing operating performance and the ability to generate free cash flow from current operations. The Company defines AISC as the sum of operating cash costs (per above), sustaining capital (capital required to maintain current operations at existing levels), capital lease repayments, corporate general and administrative expenses, in-mine exploration expenses and rehabilitation accretion and amortization related to current operations. AISC excludes capital expenditures for significant improvements at existing operations deemed to be expansionary in nature, exploration and evaluation related to growth projects, rehabilitation accretion and amortization not related to current operations, financing costs, debt repayments, share-based compensation not related to

• perations, and taxes.

Additional Information For information regarding mineral resource and reserve estimates, including parameters used to generate the estimates and depletion, please see the technical reports prepared in accordance with National Instrument 43-101 supporting the 2015 Mineral Reserve and Mineral Resource estimates. The reports are titled as follows: Report

• n the Mineral Resources & Mineral Reserves of the Fosterville Gold Mine, Victoria, Australia, dated March 21, 2016 and effective December 31, 2015. 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. 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. Technical Report Mineral Resources of the Maud Creek Gold Project, Northern Territory, Australia dated March 21, 2016 and effective December 31, 2015.