Newmarket Gold Announces Intent to Redeem Outstanding Convertible Debentures

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 12, 2016) - Newmarket Gold Inc. ("Newmarket Gold" or the "Company") (TSX:NMI)(OTCQX:NMKTF) today announced that on March 30, 2016 (the "Redemption Date") it intends to redeem in full all of its then outstanding convertible unsecured debentures due April 30, 2018 (the "Debentures") in accordance with the provisions of the indenture dated as of April 5, 2013, as supplemented and amended by the first supplemental indenture dated as of July 10, 2015 (together, the "Indenture"), in each case between the Corporation and Equity Financial Trust Company (the "Trustee").

The redemption price for the Debentures shall be 100% of the aggregate outstanding principal amount ("Redemption Price"), together with accrued and unpaid interest up to, but excluding, the Redemption Date. In accordance with the Indenture, the Company intends to elect to satisfy its obligation to pay the Redemption Price by issuing to Debenture holders common shares in the capital of the Company ("Common Shares") and to pay all accrued and unpaid interest up to, but excluding, the Redemption Date, in cash. The number of Common Shares delivered will be determined by dividing the Redemption Price by 95% of the then current market price (as defined in the Indenture) of the Common Shares on the Redemption Date in accordance with the terms of the Indenture. Debenture holders have the right, by giving notice to the Trustee by no later than 5:00 p.m. (Toronto time) on March 29, 2016, to elect to convert their debentures into Common Shares at the conversion price in effect on the date of conversion in accordance with the terms of the Indenture.

ON BEHALF OF THE BOARD

Douglas Forster, M.Sc., P.Geo., President & Chief Executive Officer

About Newmarket Gold Inc.

Newmarket Gold 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 Gold core values represent.