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Wesdome Provides Update on Drilling Progress at Kiena Mine Complex in Quebec

Reviewed

Nov 16 2016

Wesdome Gold Mines Ltd.("Wesdome" or the "Company") is pleased to provide an update of drilling progress at its 100% owned Kiena Mine Complex located in Val d'Or, Quebec.

The new drilling continues to intersect high-grade gold values near the Kiena Deep drill results announced on August 24 and September 15, 2016. Highlights from the recent phase of drilling are listed below:

HIGHLIGHTS (uncut and cut assay averages over core lengths*)

49.68 g/t gold over 2.10 m uncut (18.74 g/t cut) in hole 6124C
71.42 g/t gold over 1.50 m uncut (34.28 g/t cut) in hole 6124C
38.89 g/t gold over 1.2 m uncut (18.06 g/t cut) in hole 6124C
30.34 g/t gold over 2.17 m uncut (30.34 g/t cut) in hole 6130A
27.80 g/t gold over 2.40 m uncut (7.69 g/t cut) in hole 6131A
28.97 g/t gold over 1.00 m uncut (28.97 g/t cut) in hole 6131A
27.80 g/t gold over 2.40 m uncut (7.69 g/t cut) in hole 6131A
749.96 g/t gold over 0.60 m uncut (34.28 g/t cut) in hole 6131A
9.17 g/t gold over 6.80 m uncut (6.28 g/t cut) in hole 6152
20.22 g/t gold over 1.00 m uncut (20.22 g/t cut) in hole 6152
30.43 g/t gold over 1.00 m uncut (30.43 g/t cut) in hole 6149
32.21 g/t gold over 1.50 m uncut (19.17 g/t cut) in hole 6124B
20.22 g/t gold over 1.10 m uncut (16.35 g/t cut) in hole 6124B
*Assay intervals include values cut to an arbitrary, historic 1 oz/ton or 34.28 g/t.
**The geometry of the upper quartz veins is not currently understood.
Thus true widths are, at this time, not determined.

Compilation of the new drilling combined with previous results support the presence of at least two multi zone centres of mineralization that remain open to depth and along strike.

1) High-grade quartz veins in basalt centred at 1,100 metres depth (Upper Quartz Vein Zone), and
2) High-grade albitized stockwork vein-breccia systems centred at 1,200-1,300 metre depths (Lower Stockwork Zone)

Mr. Duncan Middlemiss, President and CEO, commented, "The high-grade nature of these recent results have brought a renewed focus to this asset, especially in view of the property's substantial resource base. The Kiena Complex is fully permitted, with a 930 metre shaft, a ramp system that accesses the 1000m Level, and a 2,000 tonne per day mill all in excellent condition. The potential for relatively low capital expenditure and a reduced development timeline is evident. We are concentrating efforts to advance this asset and are adding a fourth drill to expedite this exciting program."

RESULTS

New results are tabulated in the attached Table 1. Assay intervals in the detailed table include values cut to an arbitrary, historic 1 oz/ton or 34.28 g/t. Locations of the drill holes are shown in Figure 1, an isometric view looking northwest. Figure 2 provides the current wireframe interpretation of the Kiena Deep discovery. Figure 3 shows the ore outline of the S50 Zone on the 330 m level along with the location of the current drilling. We are testing a model that this S50 geometry potentially repeats at depth.

PAST WORK - CURRENT INTERPRETATION

The first exploration drilling to depth was conducted in the period of 2010 - 2012. Approximately 20 holes were completed with the purpose of tracing a southeast plunging trend projected as a potential extension of the S50 Zone. Pre-2016 drill results are tabulated in the attached Table 2.

The results of this work were described in Press Releases dated March 29, 2010, and September 4, 2012, available in the Press Release archive at www.wesdome.com. Drilling was eventually abandoned due to slower than expected progress due to blocky ground conditions in the upper halves of holes drilled from the 910 m level. These conditions continue to slow the generation of drill results.

This early work supported the interpretation of three southeast trending zones occurring below the 1,000 metre level. They support an Indicated Resource estimate⁽¹⁾ prior to 2016 drilling, and are being targeted now in the current drilling program.


Zone	Cut Grade	Tonnes	Ounces
	(cut to 34.28 g/t)
S50 Deep A	10.87	173,111	60,511
S50 Deep AH	8.53	68,722	18,855
S50 Deep B	3.21	514,100	53,100

⁽¹⁾ Reference: Technical Report for the Quebec Wesdome Project (according to National Instrument 43-101 and Form 43-101F1) dated December 16, 2015 prepared by Bruno Turcotte, P.Geo., Denis Gourde, Eng., Pierre-Luc Richard, P.Geo. of InnovExplo Inc.

The 2016 drill program commenced in June and generated exceptional early results (Press Releases dated August 24 and September 15, 2016). The program was predicated on the model that mineralization may be much more extensive and replicate the characteristic Z-fold geometry observed in the S50 Zone which supported the bulk of historic production at Kiena from 1981 - 2013 (Figure 3).

Early results support this thesis and have also identified a new high-grade quartz vein system at shallower depths (Upper Quartz Vein Zone).

Compilation of Upper Quartz Vein Zone Drill Results (uncut assay averages over core lengths)

30.43 g/t gold over 1.00 m in hole 6149 (2016 new)
32.21 g/t gold over 1.50 m in hole 6124B (2016 new)
48.68 g/t gold over 2.00 m in hole 6124B (2016 new)
38.89 g/t gold over 1.20 m in hole 6124C (2016 new)
71.42 g/t gold over 1.50 m in hole 6124C (2016 new)
20.22 g/t gold over 1.10 m in hole 6124B (2016 new)
3.44 g/t gold over 8.30 m in hole 6124 (2016 new)
94.35 g/t gold over 17.40 m in hole 6124 (2016 previously released)
80.24 g/t gold over 1.00 m in hole 5172 (Pre-2016)
17.42 g/t gold over 6.60 m in hole 4809 (Pre-2016)
13.95 g/t gold over 1.15 m in hole 4808 (Pre-2016)
11.46 g/t gold over 1.00 m in hole 4929 (Pre-2016)

Compilation of Lower Stockwork Zone Drill Results (uncut assay averages over core lengths)

9.17 g/t gold over 6.80 m in hole 6152 (2016 new)
20.22 g/t gold over 1.00 m in hole 6152 (2016 new)
27.80 g/t gold over 2.40 m in hole 6131A (2016 new)
7.95 g/t gold over 3.80 m in hole 6125 (2016 new)
28.97 g/t gold over 1.00 m in hole 6131A (2016 new)
749.96 g/t gold over 0.60 m in hole 6131A (2016 new)
30.34 g/t gold over 2.17 m in hole 6130A (2016 new)
192.95 g/t gold over 16.95 m in hole 6125 (2016 previously released)
238.81 g/t gold over 5.00 m in hole 6125 (2016 previously released)
8.43 g/t gold over 8.20 m in hole 6130A (2016 previously released)
112.12 g/t gold over 6.00 m in hole 5974 (Pre-2016)
16.72 g/t gold over 5.40 m in hole 5974 (Pre-2016)
12.31 g/t gold over 12.80 m in hole 4928 (Pre-2016)
20.66 g/t gold over 10.50 m in hole 4929 (Pre-2016)
51.86 g/t gold over 7.50 m in hole 5966 (Pre-2016)
4.64 g/t gold over 4.55 m in hole 4724 (Pre-2016)
30.57 g/t gold over 1.60 m in hole 5971 (Pre-2016)
72.37 g/t gold over 0.30 m in hole 4810A (Pre-2016)
28.23 g/t gold over 1.00 m in hole 4320 (Pre-2016)
11.86 g/t gold over 4.50 m in hole 4830 (Pre-2016)
12.22 g/t gold over 3.70 m in hole 5965B (Pre-2016)
7.29 g/t gold over 9.50 m in hole 5967 (Pre-2016)
10.17 g/t gold over 5.40 m in hole 5967 (Pre-2016)
41.74 g/t gold over 3.20 m in hole 5965B (Pre-2016)
4.17 g/t gold over 14.70 m in hole 4566 (Pre-2016)
3.09 g/t gold over 12.00 m in hole 5972 (Pre-2016)
3.92 g/t gold over 13.00 m in hole 4317 (Pre-2016)
3.20 g/t gold over 8.00 m in hole 4568 (Pre-2016)
**The geometry of the upper quartz veins is not currently understood.
Thus true widths are, at this time, not determined.

THE PATH FORWARD

Figure 1 illustrates the steeply inclined, deep nature of drilling to date. We have mobilized a third drill to the 770 m level and will soon add a fourth to the 960 m level. Drilling continues northeast through massive basalts targeting the controlling basalt-komatiite contact area alteration and deformation zone that hosts at least four zones of mineralization interpreted to date.

More drills, better attack angles, and shorter holes coupled with our evolving technical and practical experience with these conditions are expected to accelerate results.

Our goal is to generate reasonable confidence in a critical mass to justify progressive development of a ramp system to better position drills and eventually access both known centres of mineralization.

KIENA COMPLEX

The Company's wholly owned, contiguous Val d'Or properties cover approximately 7,000 hectares and encompass four former producers, eight shafts and a network of underground workings.

A NI43-101 mineral resource report dated December 16, 2015 was prepared by independent consulting firm InnovExplo Inc. (www.sedar). Based on economic parameters, InnovExplo established that Wesdome's Quebec Properties contain:

Measured Resources of:
63,700 tonnes grading 4.05 g/ton gold (8,300 ounces)
Indicated Resources of:
2,439,000 tonnes grading 5.62 g/t gold (441,000 ounces)
Total Measured and Indicated Resources of:
2,500,600 tonnes grading 5.59 g/t gold (449,300 ounces)
Inferred Resources of:
1,563,300 tonnes grading 7.97 g/t gold (400,400 ounces)

The Kiena Mine Complex is a fully permitted, integrated mining and milling infrastructure which includes a 930 metre production shaft and 2,000 tonne per day capacity mill. From 1981 to 2013 the mine produced 1.75 million ounces of gold from 12.5 million tonnes at a grade of 4.5 g/t. The bulk of this production came from the S-50 Zone between depths of 100 and 1,000 metres. In 2013, operations were suspended due to a combination of declining gold prices and lack of developed reserves. The infrastructure has been well preserved on care and maintenance status.

TECHNICAL DISCLOSURE

The technical and scientific disclosure in this press release has been prepared and approved by Marc Ducharme, P. Geo., Chief Exploration Geologist of Wesdome and "Qualified Person" as defined by National Instrument 43-101 disclosure standards. Analytical work was performed by Techni-Lab (ActLabs) of Ste-Germaine-Boulé (Quebec), a certified commercial laboratory (SCC Accredited Lab #707). Sample preparation was done at Techni-Lab (ActLabs) in Val d'Or (Quebec) and assaying was done by fire assay methods at Techni-Lab (ActLabs) laboratory in Ste-Germaine-Boulé (Quebec). In addition to laboratory internal duplicates, standards and blanks, the geology department inserts blind duplicates, standards and blanks into the sample stream at a frequency of one in twenty to monitor quality control.

Assaying from the period 2010 - 2012 was determined by fire assay methods at the Kiena Mine assay office. This work involved internal duplicates, standards and blanks. Additionally, the geology department inserted blind standards and blanks at a frequency of one in twenty. The qualified person monitoring quality control at this time was also Marc Ducharme, P.Geo., OGQ and Chief Exploration Geologist, Kiena Mine, Wesdome Gold Mines Ltd.

Table 1: Kiena Deep 2016 Highlights

Hole No.	From (m)	To (m)	Corelength (m)**	Grade (g/t Au)	Cut Grade* (g/t Au)	Index of Highlights (Fig 1)
6124	440.70	449.00	8.30	3.44	3.44	3
6124 †	491.50	508.90	17.40	94.35	18.03	7
6124B	438.40	439.90	1.50	32.21	19.17	2
6124B	457.80	458.90	1.10	20.22	16.35	5
6124C	456.70	458.80	2.10	48.68	18.74	4
6124C	468.70	469.90	1.20	38.89	18.06	6
6124C	510.00	511.50	1.50	71.42	34.28	8
6125 ††	695.05	712.00	16.95	192.95	18.80	11
6125	714.50	718.30	3.80	7.95	7.95	13
6125 †	740.00	745.00	5.00	238.81	15.71	15
6130A †	604.00	612.20	8.20	8.43	3.82	17
6130A	670.20	672.37	2.17	30.34	30.34	18
6131A	422.10	424.50	2.40	27.80	7.69	12
6131A	449.50	450.50	1.00	28.97	28.97	14
6131A	478.90	479.50	0.60	749.96	34.28	16
6134	797.45	797.75	0.30	VG	VG	19
6149	276.80	277.80	1.00	30.43	30.43	1
6152	358.50	365.30	6.80	9.17	6.28	9
6152	373.00	374.00	1.00	20.22	20.22	10
6155	402.10	402.60	0.50	VG	VG	20
6155	422.00	423.20	1.20	VG	VG	21

Note:
* High assays arbitrarily cut to 34.28 g/t Au (1.0 oz/ton)
** The geometry of the upper quartz veins is not currently understood
	Thus true widths are, at this time, not determined. The true widths for the
	Lower Zones vary between 50 to 100% of core lengths. VG Visible Gold – Assays pending
† Previously released August 24^th 2016
†† Previously released September 15^th 2016


Table 2: Kiena Deep Pre-2016 Highlights

Hole No.	From (m)	To (m)	Corelength (m)**	Grade (g/t Au)	Cut Grade* (g/t Au)	Index of Highlights (Fig 1)
3491	162.00	170.80	8.80	2.17	2.17	E
3500A	986.40	993.40	7.00	2.97	2.97	G
4317	432.40	445.40	13.00	3.92	3.92	U
4320	379.00	380.00	1.00	28.23	28.23	H
4566	400.00	414.70	14.70	4.17	3.74	S
4568	462.00	470.00	8.00	3.20	3.20	V
4724	456.00	460.55	4.55	4.64	4.64	W
4808	160.50	161.65	1.15	13.95	13.95	D
4809	160.00	166.60	6.60	17.42	10.61	C
4810A	602.95	603.25	0.30	72.37	34.28	Y
4830	366.00	370.50	4.50	11.86	8.64	K
4928	387.80	400.60	12.80	12.31	8.42	N
4929	155.00	156.00	1.00	11.46	11.46	B
4929	417.00	427.50	10.50	20.66	12.11	P
5169	244.50	247.50	3.00	7.41	7.41	F
5172	156.00	157.00	1.00	80.24	34.28	A
5965B	387.30	391.00	3.70	12.22	9.29	L
5965B	456.00	459.20	3.20	41.74	6.90	Q
5966	466.90	474.40	7.50	51.86	21.49	R
5967	426.00	435.50	9.50	7.29	2.72	M
5967	440.80	446.20	5.40	10.17	8.20	O
5971	557.50	559.10	1.60	30.57	23.61	X
5972	473.20	485.20	12.00	3.09	3.09	T
5974	378.10	384.10	6.00	112.12	13.95	I
5974	393.60	399.00	5.40	16.72	7.04	J

Note:
* High assays arbitrarily cut to 34.28 g/t Au (1.0 oz/ton)
** The geometry of the upper quartz veins is not currently understood
	Thus true widths are, at this time, not determined. The true widths for the
	Lower Zones vary between 50 to 100% of core lengths.