Shore Gold Inc. Announces Year End Results

Press Release

March 23, 2016

Shore Gold Inc. (“Shore” or the “Company”) reports that the audited results of its operations for the year ended December 31, 2015 will be filed today and may be viewed at www.sedar.com once posted. A summary of key financial and operating results for the year is as follows:

Highlights

• Announced Revised Mineral Resources for the Star and Orion South Kimberlites;
• Announced an updated valuation of the diamond parcels from the Star – Orion South Diamond Project (“Project”);
• Announced drilling results of the core and large diameter drilling (“LDD”) programs on the Orion South Kimberlite;
• Announced the closing of a bought deal private placement of 11.5 million Flow-Through Common Shares and 3.7 million Common Shares for aggregate gross proceeds of $3.3 million;

• Announced the closing of a private placement for gross proceeds of $2.0 million;
• Continued to seek opportunities for Project development capital;

• Working capital of $4.0 million at December 31, 2015;
• Issued and outstanding shares of 274,286,765 at December 31, 2015

Overview0B

During the fourth quarter of 2015, the Company announced Revised Mineral Resource estimates for the Star and Orion South Kimberlites (see SGF News Release dated November 9, 2015 and Technical Report filed December 21, 2015). Accordingly, the mineral resources and economic assessment previously disclosed by Shore for the Project should no longer be relied upon. These Revised Mineral Resource estimates resulted in substantial increases in tonnes, grade and carats in the Indicated Resource category:

• Indicated Mineral Resource for the Star Kimberlite has increased 38 percent to 28.2 million carats and the grade has increased 11 percent to 15 carats per hundred tonnes (“cpht”).

• Indicated Mineral Resource for the Orion South Kimberlite has increased 134 percent to 27.1 million carats and the grade has increased 1 percent to 14 cpht.

In addition to the Indicated Mineral Resource Estimate, the Star and Orion South Kimberlites include Inferred Resources containing 11.5 million carats.

The Company also announced an updated valuation of the diamond parcels from the Project (see SGF News Release dated October 21, 2015) . This updated diamond valuation was required for the Revised Mineral Resource estimates for the Star and Orion South Kimberlites. The Parcel Prices show increases between 31 and 125 percent above the March 2008 prices. Model Prices ranging between $161 and $333 per carat have been determined for the diamond populations of the major kimberlite units that make up the Star and Orion South Kimberlites. The decline in the value of the Canadian dollar against the US dollar since January 2013 works in favour of Project economics and the increase in Model Prices is even greater in Canadian dollar terms.

Read More: http://shoregold.com/_resources/news/nr_2016_03_23.pdf

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