NewCastle Gold Announces Updated NI 43-101 Mineral Resource Estimate for Its Castle Mountain Gold Project

TORONTO, ONTARIO--(Marketwired - Dec 2, 2015) - NewCastle Gold Ltd. ("NewCastle" or the "Company") (TSX VENTURE:NCA)(OTCQX:CTMQF) is pleased to announce an updated mineral resource estimate (the "Updated Mineral Resource"), prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") on the Company's 100% controlled and permitted Castle Mountain Gold Project (the "Project") located in San Bernardino County, California. The Updated Mineral Resource incorporates the bulk of the historical drilling on the Project of 361,487 metres of predominantly reverse circulation ("RC") drilling in 1,762 holes, 7,582 metres in 30 RC and core holes completed by the Company in 2013, and an additional 13,927 metres in 47 RC and core holes completed since the initial mineral resource estimate released by the Company in November 2013. The Updated Mineral Resource supersedes and replaces the technical report dated May 30, 2014 previously filed by the Company (the "2014 Technical Report").

The Updated Mineral Resource utilizes a 0.20 gram per tonne ("g/t") gold cut-off within an optimized pit shell calculated at a gold price of US$1,100 per ounce. Highlights of the Updated Mineral Resource are as follows (see the table below for further details):

• Measured plus Indicated Mineral Resource of 219.9 million tonnes grading 0.59 g/t gold and containing 4.19 Million gold ounces. This represents an increase in Measured and Indicated gold ounces of 33% compared to the prior mineral resource estimate, which applied a lower cut-off of 0.14 g/t gold.
• New Measured Mineral Resources category of 17.4 million tonnes grading 0.86 g/t gold and containing 0.48 million gold ounces.
• Inferred Mineral Resources of 40.8 million tonnes grading 0.58 g/t gold and containing 0.76 million gold ounces. This represents a reduction in Inferred ounces of 28% compared to the prior mineral resource estimate.
• New Measured, increased Indicated and reduced Inferred Mineral Resources reflect the application of improved geological and structural deposit modeling and the inclusion of 47 RC and core holes (13,927 metres) completed since the 2013 mineral resource estimate.
• Significantly lower strip ratio than in the prior mineral resource estimate. Strip ratio at 0.20 g/t cut off is 2.8:1 versus 3.4:1 (at 0.14 g/t cut-off) in the prior mineral resource estimate, notwithstanding the higher cut-off applied in the Updated Mineral Resource.
• Validation of historical gold production on the property using the New Mineral Resource estimate parameters is within 4% of both mined grade and total ounces, and 7% of mined tonnes.
• Measured plus Indicated Resource grade of 0.59 g/t gold compared to 0.60 g/t gold in prior base case estimate. Slightly higher grade in Inferred Resource (0.58 g/t versus 0.57 g/t in the prior mineral resource estimate).
• Sensitivity table (below) shows the potential to retain considerable ounces at higher gold grades with increasing cut-off grade.

Complete sets of cross-sections and longitudinal sections through this Mineral Resource and modeled optimized pit shells compared to the former resource estimate are available on the Company website www.newcastlegold.ca.

"The new resource, based on improved geological and structural modeling and additional drilling now contains over four million ounces of gold in the Measured and Indicated Resource categories which is relatively insensitive to increasing cut-off grade. The base case resource also shows significant reductions in strip ratio. Together, these create a solid foundation for further optimization studies to build upon. Castle Mountain represents one of the largest and highest grade permitted gold deposits of its class anywhere and still has room to grow" stated David Adamson, Chief Executive Officer.

About the Updated Mineral Resource

Site investigation, database validation and construction of the geological model was carried out by R. Bob Singh, P.Geo. of North Face Software Ltd. This geological and mineralization model formed the basis for grade estimation that was completed by James N. Gray, P. Geo. of Advantage Geoservices Limited (collectively termed, the "Consultants"). The Consultants are both independent Qualified Persons as defined by NI 43-101.

The Updated Mineral Resource is based on the results from 352,090 metres of drilling in 1,683 holes (1,637 RC and 46 core). Assays were reviewed statistically by interpreted geologic domain to establish appropriate grade capping levels. Capped grades were composited to a length of three metres within interpreted units. In addition to the capping of assay data, the impact of anomalously high gold values was further controlled by restricting their range of influence in the estimation process. Block grades were estimated by ordinary kriging. Blocks measure 10 x 10 x 10 metres. Tonnage estimates are based on 335 density measurements which were used to assign average values to lithologic units of the block model. Bulk density for the mineralized domains averages 2.20 tonnes per cubic metre.

Blocks classified as Measured Mineral Resources are within 20 metres of at least three holes and the closest is within 10 metres or within 30 metres of three holes and the closest is within 7.5 metres. Indicated blocks have a maximum average distance to three holes of 50 metres and the closest hole is within 10 metres or at least one hole in four octants of a 75 metre spherical search. Inferred Mineral Resource blocks require three holes within 180 metres.

In order to establish reasonable prospects for eventual economic extraction in an open pit context, the mineral resources were defined within an optimized pit shell using a gold price of US$1,100 per ounce, pit wall slopes of 48°, estimated gold recovery of 80%, mining costs estimated at US$1.42/tonne, processing costs estimated at US$4.79/tonne and general and administrative costs estimated at US$0.73/tonne. The base case cut-off grade used is 0.20 g/t gold. The assumptions listed produced a strip ratio of 2.8:1. These assumptions are considered to be economically reasonable estimates by the Consultants.

The 2014 Technical Report, which included a summary of a preliminary economic assessment of the Project, is considered to be out of date such that it can no longer be relied upon. The Project is no longer considered an advanced property for the purposes of NI 43-101, as the potential economic viability of the Project is not currently supported by a preliminary economic assessment, pre-feasibility study or feasibility study.

The Consultants are preparing a technical report in accordance with NI 43-101 in respect of the Updated Mineral Resource discussed in this news release and this technical report will be filed on SEDAR at www.sedar.com and on the Company's website at www.newcastlegold.ca within 45 days of the date of this news release.

Garth D. Kirkham, P.Geo. of Kirkham Geosystems Ltd., will perform a third-party peer review of the NI 43-101 technical report prior to filing.

Ian R. Cunningham-Dunlop, P. Eng., the Company's Vice President Exploration, and James N. Gray, P. Geo. of Advantage Geoservices Ltd. are the designated Qualified Persons for this news release within the meaning of NI 43-101. Both have reviewed and verified that the technical information contained in this release is accurate and approve of the written disclosure of same.

About NewCastle

NewCastle has 100% of the right, title and beneficial interest in and to the Castle Mountain Venture, a California general partnership, which owns the Castle Mountain property in San Bernardino County, California, (7,458 acres in total). The Castle Mountain heap leach gold mine produced over one million ounces of gold from 1992 to 2001, when mining was suspended due to low gold prices. The Mine and Reclamation Plan, under which the mine operated, was authorized by the County of San Bernardino as the Lead Agency and remains in effect. Water for the drill programs was accessed from existing patented wells on the Project.

The Project hosts a disseminated low sulphidation epithermal system. Gold mineralization is primarily hosted in a complex rhyolite suite and to a lesser extent, in an underlying andesite package and Pre-Cambrian basement rocks. Gold is associated with later rhyolite volcanic activity, zones of silicification and brecciation, and northeast-southwest trending/southeast dipping fault structures. Eleven gold domains are represented by both steep and shallow-dipping orientations.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

Statements contained in this news release that are not historical facts are "forward-looking information" or "forward-looking statements" (collectively, "Forward-Looking Information") within the meaning of applicable Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. Forward Looking Information includes, but is not limited to, disclosure regarding possible events, conditions or financial performance that is based on assumptions about future economic conditions and courses of action; the timing and costs of future exploration and testing activities on the Company's properties; success of exploration activities; time lines for technical reports; planned exploration and development of properties and the results thereof; and planned expenditures and budgets and the execution thereof. Statements concerning Mineral Resource estimates may also be deemed to constitute forward looking information to the extent that they involve estimates of the mineralization that will be encountered if the property is developed. In certain cases, Forward-Looking Information can be identified by the use of words and phrases such as "plans", "expects" or "does not expect", "is expected", budget", "scheduled", "suggest", "optimize", "estimates", "forecasts", "intends", "anticipates", "potential" or "does not anticipate", believes", "anomalous" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". In making the forward-looking statements in this news release, the Company has applied several material assumptions, including, but not limited to, that the current testing and other objectives concerning the Castle Mountain project can be achieved and that its other corporate activities will proceed as expected; that the current price and demand for gold will be sustained or will improve; that general business and economic conditions will not change in a materially adverse manner and that all necessary governmental approvals for the planned exploration on the Castle Mountain project will be obtained in a timely manner and on acceptable terms; the continuity of the price of gold and other metals, that the Company's existing patented and unpatented land has not been altered by any designation under U.S. Federal statute or other laws and economic and political conditions and operations.

Forward-Looking Information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the Forward-Looking Information. Such risks and other factors include, among others, obtaining financing on commercially reasonable terms, operations and contractual obligations; changes in exploration programs based upon results of exploration; future prices of metals; availability of third party contractors; availability of equipment; failure of equipment to operate as anticipated; accidents, effects of weather and other natural phenomena and other risks associated with the mineral exploration industry; environmental risks, including environmental matters under U.S. federal and California rules and regulations; impact of environmental remediation requirements and the terms of existing and potential consent decrees on the Company's planned exploration on the Castle Mountain project; certainty of mineral title; community relations; delays in obtaining governmental approvals or financing; fluctuations in mineral prices; the Company's dependence on one mineral project; the nature of mineral exploration and mining and the uncertain commercial viability of certain mineral deposits; the Company's lack of operating revenues; governmental regulations and the ability to obtain necessary licenses and permits; risks related to mineral properties being subject to prior unregistered agreements, transfers or claims and other defects in title; impacts to patented and unpatented land by designation under U.S. Federal Statute or other laws, currency fluctuations; changes in environmental laws and regulations and changes in the application of standards pursuant to existing laws and regulations which may increase costs of doing business and restrict operations; risks related to dependence on key personnel; and estimates used in financial statements proving to be incorrect; as well as those factors discussed in the Company's public disclosure record.
Although the Company has attempted to identify important factors that could affect the Company and may cause actual actions, events or results to differ materially from those described in Forward-Looking Information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that Forward-Looking Information 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 Information. Except as required by law, the Company does not assume any obligation to release publicly any revisions to Forward-Looking Information contained in this news release to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Readers should refer to the Company's Annual Information Form and Management Discussion and Analysis for the year ended December 31, 2014 as well as the Company's most recent Management Discussion and Analysis, available on www.sedar.com.

This news release may use the terms "measured", "indicated" and "inferred" as these terms are defined under Canada's National Instrument 43-101. U.S. Investors are advised that, while such terms are recognized and required by Canadian regulations, they are not recognized by the United States Securities and Exchange Commission ("SEC") and may not be comparable to similar information for United States mining or exploration companies. As such, certain information contained on this news release concerning descriptions of mineralization and resources under Canadian standards is not comparable to similar information made public by United States companies subject to the reporting and disclosure requirements of the SEC. U.S. investors are cautioned not to assume that any part or all of the mineral deposits described in these categories will ever be converted into proven or probable reserves, as defined in the SEC's Industry Guide No. 7.

Contact

NewCastle Gold Ltd.
Marty Tunney
416-572-0151
mtunney@newcastlegold.ca