Vancouver, British Columbia (FSCwire) - Majestic Gold Corp. ("Majestic" or the "Company") (TSX.V: MJS, FSE: A0BK1D) announces its financial and operational results for the year ended September 30, 2016.The following financial results are expressed in US dollars unless otherwise stated.

This release should be read in conjunction with the Company's audited consolidated financial statements for the years ended September 30, 2016, and 2015 and associated Management Discussion and Analysis ("MD&A") which are available on SEDAR www.sedar.com and on the Company's website www.majesticgold.com.

OVERVIEW

• Gold production from the Songjiagou Gold Mine was 22,975 ounces for 2016 (2015 - 19,488), a 18% increase in production over the prior year;

• Gross profit for 2016 was $1,741,197 compared to a gross loss of ($1,824,830) for 2015, a gross profit increase of $3,566,027, 195% increase over the prior year;

• Gold sales revenue was $27.5 million for 2016, from the sale of 22,924 ounces, at an average realized gold price of $1,198 per ounce, compared to gold sales revenue of $22.4 million from the sale of 18,133 ounces, at an average realized gold price of $1,235 per ounce, for 2015. The increase was due to increased gold sales and partially offset by the lower realized gold price;

• Net loss for 2016 was $3,277,816 (2015 - ($6,328,834)), a net loss decrease of $3,051,018;

• Majestic's adjusted EBITDA was $1,851,687 for 2016, (2015 - ($2,431,956)). Refer to pages 19-20 for the computation of this Non-IFRS financial measure;

• For 2016, cash costs were $1,014 per ounce (2015 - $1,210), and all-in sustaining costs ("AISC") were $1,174 per ounce (2015 - $1,411);

• Tonnes milled for 2016 were 1,619,876 tonnes with an average head grade of 0.49 g/t, compared to 1,578,797 tonnes milled, with an average head grade of 0.43 g/t, for 2015;

• General and administrative ("G&A") expenses were $3,036,630 for 2016 (2015 -$3,335,927); a decrease of 9% over the comparative year;

• The Company entered into a new two year non-binding Letter of Intent ("LOI") with Yantai Baiheng Gold Mining Co. Ltd. ("Baiheng") on July 11, 2016, The July 11, 2016 LOI supersedes the August 6, 2015 LOI and allows the Company an additional 24 months for due diligence on the Shuang Shan Tun and Xia Yu Cun properties, located in the Muping-Rushan Gold Belt in Shandong Province, China; and

• On December 16, 2016, the Company closed a non-brokered private placement financing for total proceeds of $9,787,500 by the issuance of 72,500,000 units at $0.135 per unit.Each unit consisted of one common share and one common share purchase warrant entitling the holder to purchase an additional common share at $0.155 for a period of two years after the closing.Proceeds from the private placement will be used to partially fund construction of housing for inhabitants of two villages that are being relocated due to their close proximity to the Songjiagou open pit operation and for general working capital purposes.

FINANCIAL INFORMATION

		Year ended September 30, 2016		Year ended September 30, 2015
Operating data
Gold produced (ozs)		22,975		19,488
Gold realized net of smelting fees (ozs)		21,644		17,986
Gold sold (ozs)		22,924		18,133
Average realized gold price ($/oz sold)	$	1,198	$	1,235
Total cash costs ($/oz sold) (1)		1,014		1,210
Total production costs ($/oz sold)(1)		1,137		1,347
All-in sustaining costs per ounce ($/oz sold) (1)		1,174		1,411
Financial data
Total revenues	$	27,801,966	$	22,595,313
Gross profit (2)		1,741,197		(1,824,830)
Adjusted EBITDA (1)		1,851,687		(2,431,956)
Net loss		(3,277,816)		(6,328,834)
Net loss attributable to shareholders		(2,914,351)		(4,855,689)
Basic and diluted loss per share		(0.00)		(0.01)
Cash and cash equivalents		9,037,258		6,981,718
Total assets		93,305,139		95,679,706
Total debt		33,038,286		30,297,103

(1)See "Additional Financial Measures" in the Company's MD&A.

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

PRODUCTION RESULTS

		Year ended September 30, 2016		Year ended September 30, 2015
Production data
Tonnes mined		1,662,583		1,673,484
Tonnes milled		1,619,876		1,578,797
Head grade (g/t)		0.49		0.43
Mill recovery		90%		88.6%
Gold produced (ozs)		22,975		19,488
Gold realized, net of smelting fees (ozs)		21,644		17,986

All technical information contained in this news release has been reviewed and approved by Stephen Kenwood, P. Geo., who is a director of the Company and a qualified person under the definitions established by NI 43-101.

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?EUR?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?EUR?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?EUR?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?EUR?looking statements.

While these forward?EUR?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 Gold does not intend to update any forward?EUR?looking statements to conform these statements to actual results

To view this press release as a PDF file, click onto the following link:
public://news_release_pdf/MajesticGold01272017.pdf

Source: Majestic Gold Corp. (TSX Venture:MJS, OTC Pink:MJGCF, FWB:AOBK1D)

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