Eric Sprott Increases Newmarket Gold Shareholdings to 17.9% by Purchasing 16.2 Million Newmarket Common Shares at $2.80 Per Share

VANCOUVER, BRITISH COLUMBIA --  04/26/16 -- Newmarket Gold Inc. ("Newmarket" or the "Company") (TSX:NMI)(OTCQX:NMKTF) and Eric Sprott are pleased to report that Mr. Sprott will purchase 16,200,000 common shares of Newmarket (the "Acquired Shares") from Luxor Capital Partners LP and affiliates ("Luxor") at a price of $2.80 per Acquired Share for total consideration of $45.4 million. Together with Mr. Sprott's prior shareholdings in Newmarket, Mr. Sprott will own 31,351,196 common shares of Newmarket representing an approximate 17.9% ownership in the Company. Luxor also granted Mr. Sprott a right of first refusal to purchase up to an additional 22,000,000 common shares of Newmarket. This right expires December 31, 2016.

Mr. Sprott has been granted all voting rights attached to the Acquired Shares effective until the closing of the purchase of the Acquired Shares. Therefore, Mr. Sprott currently exercises control or direction over 31,351,196 common shares of Newmarket, representing approximately 17.9% of the issued and outstanding shares.

Douglas Forster, President and Chief Executive Officer of Newmarket stated: "Newmarket is very pleased to have Mr. Sprott as a larger shareholder of the Company. We appreciate his continued support as we focus on creating shareholder value from our three producing gold mines in Australia including our flagship Fosterville mine that delivered record quarterly gold production of 33,138 ounces on record grade of 7.34 g/t Au in Q1, 2016."

Eric Sprott stated: "Newmarket has a strong balance sheet with approximately US$52 million in the treasury and essentially no debt. Their three gold mines achieved record consolidated production in 2015 and the trend to increasing gold grades and recoveries continues into 2016. I look forward to being a supportive shareholder and participating in the growth of the Company."

Mr. Sprott will purchase the Acquired Shares for investment purposes. Mr. Sprott has a long-term view of the investment, and he does not intend at this time to acquire additional Newmarket common shares, but may acquire additional shares either on the open market or through private acquisitions or sell the shares either on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other relevant factors.

Luxor continues to hold 33,890,697 common shares of Newmarket representing an approximate 19.3% ownership in the Company with Luxor's remaining shareholdings being locked-up and restricted from trading until July 10, 2016. Newmarket has approximately 175.6 million common shares issued and outstanding.

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.

About Eric Sprott

After earning his designation as a chartered accountant, Mr. Sprott entered the investment industry as a research analyst at Merrill Lynch and Company Inc. In 1981, he founded Sprott Securities (now Cormark Securities Inc.) which today is one of Canada's largest independently owned institutional brokerage firms. After establishing Sprott Asset Management LP in December 2001 as a separate entity, Mr. Sprott divested his entire ownership of Sprott Securities to its employees. Mr. Sprott recently retired from his position as the lead portfolio manager at Sprott Asset Management (a Toronto-based alternative asset manager) and remains Chair of the board of Sprott Inc. Sprott Inc. is a leading alternative asset manager with a proud history of delivering outstanding long-term performance to its clients through a diverse range of innovative products and investment strategies which includes Sprott Asset Management LP.

A copy of the early warning report with respect to Mr. Sprott's control of the Acquired Shares, as set forth above, will appear with the Company's documents on the System for Electronic Document Analysis and Retrieval and may be obtained by contacting Mr. Sprott at (416) 362-7172.

Eric Sprott

200 Bay Street, Suite 2600

Royal Bank Plaza, South Tower

Toronto, Ontario M5J 2J2

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.

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