Integra Gold Announces Updated Preliminary Economic Assessment: Pre-Tax NPV of C$602 M and IRR of 55% (After-Tax NPV of C$363 M and IRR of 43%) at US$1,250 per Ounce of Gold

Rock mass characterization was done by Golder Associates in 2014 and was revised for Triangle using diamond drill core from 2015 and 2016. The rock mass classification was used to define long-hole stope size, cable bolting required and dilution. Simulations were completed for the long-hole stopes to define the best mining sequence. The rock mass classification was also used to design basic rock support for various development. Crown pillar sizing was done by Golder Associates in 2014.

An average dilution of 35% (at 0.0 g/t Au) has been applied for stope true thickness of 2 m. The dilution is adjusted progressively to a minimum of 20% when stope true thickness is equal or greater than 4 m. For Triangle, the long-hole stope thickness prior to dilution ranges between 2 m and 10 m for an average thickness of approximately 4 m. At No. 4 Plug, long-hole stope thickness prior to dilution ranges between 2 m and 3.2 m and for Parallel, long-hole stope thickness prior to dilution ranges between 2 m and 4 m.

Mucking will be done longitudinally using remote controlled LHD equipment with mining recovery estimated to be 85% (pillars and material left in stope).

For mineralized zones dipping less than 40 degrees, the room-and-pillar mining method will be utilized. Mechanized sub-level development in mineralized zones will be completed at 60 m intervals along the veins. Rooms will be approximately 6 m in width and a performance rate of 18 tonnes/shift was used in the mine plan. Typical stopes will have a height of 2 m and external dilution of 5% (at 0.0 g/t Au). Mining recovery is estimated at 85% (pillars and material left in stope).

The Sigma Mill is 100% owned by the Company and was fully operational as recently as 2012. The mill is located approximately 3.0 km from Triangle and 1.0 km from Parallel. Since 2014, the Company has had four full time mill employees who continue to conduct ongoing refurbishment and maintenance work in order to prepare for future operations.

During the pre-production period, offsite toll milling is planned as tonnage is insufficient to justify starting the Sigma Mill. Transportation (C$4.15/tonne) and milling (C$41-C$43/tonne) quotes from the specific mills identified were used in the cash flow model as well as the expected gold recoveries (89% Triangle and 94.7% Parallel). Transition from toll milling to processing at the Sigma Mill is expected to take place in Q3 of year 2 in the proposed mine plan, at the end of the 18 month pre-production period.

During the production phase, average mill throughput rate is expected to be approximately 1,675 tonnes per day based on 350 operation days/year. This includes resource extraction from both Triangle and Parallel from year 2 to 5, Triangle only for years 6 and 7, and both Triangle and the No. 4 Plug in years 8 to 11. The No. 4 Plug is the sole source of mineralised material in year 12.

During the production period, average milling cost of C$23 per tonne ($25 including transportation) was estimated by WSP. The milling cost includes a work force of 33 employees or 23% of the cost, reagents and consumables for 39%, maintenance for 20% and energy for 12%.

Amec Foster Wheeler ('Amec') developed a long term strategy, including construction and deposition plan, to manage tailings and water based on the proposed 10.5 year production period.

The Sigma tailings impoundment area is made up of four separate cells. A recirculation pond and a polishing pond are located to the east of those four cells. Currently, two cells out of four cells are full. To lower water levels in tailings pond during deposition, 2 new water ponds will be built east of the tailing ponds. These new ponds will facilitate water management during tailings disposal and for strong precipitation. The existing polishing pond will serve to manage dewatering water from underground operation.

Using actual quotes, an evaluation prepared by Amec estimates initial capital requirements associated with the tailings to be C$2.5 M and sustaining capital at C$10.2 M. The estimation costs include a 30% contingency.

To date, the tailings facilities have been maintained with a full time environmental technician providing monitoring. Amec is also conducting an annual geotechnical inspection of the tailings and water pond. The tailings facilities are deemed to be in good standing with the Ministry of Energy and Natural Resources ('MENR') and the tailings in place are not acid generating.

Phase 4 metallurgical test work was completed in 2016 on material from Triangle. WSP supervised detailed metallurgical testing to improve gold recoveries on representative core samples from the various mineralized zones. Acid base accounting ('ABA') testing done shows that material was not acid generating. Grindability testing was completed and Bond rod mill index ('RWI') results are in a range of 16.7 to 17.3 kWh/tonne and Bond ball index ('BWI') are from 15.5 to 16.4 kWh/tonne. The rock samples tested can be categorized as moderately hard.

Note 1: Excluding toll milling.

WSP estimates an increase of approximately 1% on average across the various mineralized zones when compared to the previous PEA due primarily to finer grinding.

Environmental, Permitting and Reclamation

No provincial environmental impact study is required at Lamaque as the provincial daily production threshold is 2,000 tonnes, higher than the proposed mine plan.

The Company currently has the provincial Certificates of Authorizations ('CA') for the underground bulk sampling program underway at Triangle. Documentation for a CA which will cover initial production at Triangle is now being prepared along with a review of the approved closure plan for the Triangle site. Documentation for these two items will be submitted in Q2 2017 for approval.

The Company currently has a permit for a 5,000 tonne bulk sample and concurrent with the other CA applications underway, is preparing an application for an extension permit for up to 50,000 tonnes. In addition to this, the Company is preparing the required documentation for its application to convert the remaining Triangle exploration claims to mining leases as required by Québec Mining Law.

The existing CAs which cover the Sigma mine and associated mining leases allow underground production up to 2,500 tons per day at Parallel and No. 4 Plug to a depth of 400 m. When required, modifications to these CAs will be prepared to cover production from the lower portion of the No. 4 Plug. A review of the closure plan for the Sigma site is being prepared and will be submitted in Q2 2017.

Reclamation costs for the Sigma site, including the mill and tailings facilities, have been evaluated at C$7.8M. Reclamation costs for the Triangle ramp were estimated to be C$1.3M. It should be noted that the financial guarantee in place for the project is currently C$3.2M and that amount will be updated following acceptance of the new reclamation plans which will be submitted to the Québec Natural Resources Department in 2017.

Community Relations

Since September 2013, the Company has initiated a proactive information and consultation strategy with its stakeholders. With the help of consulting firms such as Amec, Transfert Environnement and TMR Communication, the Company has conducted four phases of information and public consultation with approximately 40 stakeholders reaching more than 600 persons.

From June 2014 to January 2015, a consultation committee was organized to discuss the community impact of the project with an independent moderator chairing each meeting. Site visits to Lamaque and Sigma site and other similar operations in Québec were organized to present accurate and relevant information about the project and the mining industry to the committee's 20 members. For each potential impact identified, a specialist retained by the Company presented basic information on the topic, applicable regulations and outlined the impact generated by the project and the mitigating measures that are applicable. Integra has also taken various commitments to be fulfilled during project development. The consultation committee has evaluated that the impacts generated by Lamaque are acceptable.

In May 2015, a follow-up committee was formed to keep the Company's stakeholders informed about Lamaque. Quarterly meetings are organized where committee members receive updates on the status of the project and all proceedings are on the Company's website. From April to May 2016, three meetings were organized to present to the committee the revised impact of the project as the resource has grown substantially leading to various impacts on the Company's plans. The follow-up committee members were pleased with the information received and agreed that the project remains socially acceptable.

A comprehensive complaint process has been in place since March 2016 which allows for citizen or organizations to register complaints in regards to Integra's activities. No complaints have been received from the local population since this process was implemented.

Mineral Resource Estimate

The Company's November 2016 resource estimate was used as the resource base for the PEA. An updated resource estimate is planned for Lamaque in Q1 2017 which will include approximately 105,000 m of new drilling from Triangle. Note, none of the drilling completed in 2017 will be used in this updated resource. The resource estimate used in the PEA is outlined in the table below at a 5 g/t Au cut-off. The cut-off grade used for the mine plan in the PEA varies depending on mining method and other factors.

November 2016 Global Lamaque Resource Estimate (5 g/t Au Cut-Off)

Deposit	Indicated			Inferred
	Tonnes	Grade (g/t Au)	Ounces (Au)	Tonnes	Grade (g/t Au)	Ounces (Au)
Triangle	2,014,600	8.96	580,150	2,668,700	9.03	774,880
No. 4 Plug	300,417	8.56	82,634	579,432	8.59	160,028
Parallel	426,800	10.29	141,210	184,100	7.70	45,560
No. 6 Vein	201,300	7.90	51,280	239,800	7.50	58,080
Fortune	155,000	6.30	31,620	9,400	6.60	1,990
Sixteen	41,800	6.90	9,250	400	6.40	90
Total	3,139,917	8.88	896,144	3,681,832	8.79	1,040,628

1. Triangle: Effective date is March 15, 2016; Specific gravity of 2.8 g/cm; geologically constrained model with hard boundary; capping of 20 g/t Au on composites when estimated cells are more than 15 m from drill hole otherwise uncapped; composited to 1 m downhole length before geostatistical analysis; 2 m minimum true thickness, if required diluted with in situ grade when assay results are available otherwise diluted with 'zero' grade; ordinary kriging; 3 g/t cut-off calculated for official resource numbers.
2. No. 4 Plug: Effective date is October 28, 2016; Specific gravity of 2.80 g/cm3; geologically constrained model with hard boundary; capping of 20 g/t Au on composites when estimated cells are more than 15 m from drill hole otherwise uncapped; composites are 1 m in downhole length before geostatistical analysis; 2 m minimum true thickness, if required diluted with in situ grade when assay results are available otherwise diluted with 'zero' grade; ordinary kriging; 3 g/t cut-off calculated for official resource numbers. Retained scenario include sheared zones only. Flat cluster where not considered
3. Parallel: Effective date is February 05, 2016; Specific gravity of 2.80 g/cm3; geologically constrained model with hard boundary; capping of individual gold values at 100 g/t Au then capping of 20 g/t Au on composites when estimated cells are more than 15 m from drill hole otherwise uncapped; composited to 1 m downhole length before geostatistical analysis; 2 m minimum true thickness, if required diluted with in situ grade when assay results are available otherwise diluted with 'zero' grade; ordinary kriging; 3 g/t cut-off calculated for official resource numbers.
4. No. 6 Vein: Effective date is June 17, 2016; Specific gravity of 2.80 g/cm; geologically constrained model with hard boundary; capping of 20 g/t Au on composites when estimated cells are more than 15 m from drill hole otherwise uncapped; composited to 1 m downhole length before geostatistical analysis; 2 m minimum true thickness, if required diluted with in situ grade when assay results are available otherwise diluted with 'zero' grade; ordinary kriging; 3 g/t cut-off calculated for official resource numbers.
5. Fortune: Effective date is April 06, 2015; Specific gravity of 2.82 g/cm; geologically constrained model with hard boundary; individual gold values uncap; composited to 1 m downhole length before geostatistical analysis; 2 m minimum true thickness, if required diluted with in situ grade when assay results are available otherwise diluted with 'zero' grade; ordinary kriging; 3 g/t cut-off calculated for official resource numbers.
6. Sixteen: Effective date is November 18, 2013; Specific gravity of 2.80 g/cm; geologically constrained model with hard boundary; individual gold values capped at 35 g/t Au; composited to 0.7 m downhole length before geostatistical analysis; 2 m minimum true thickness, if required diluted with in situ grade when assay results are available otherwise diluted with 'zero' grade; ordinary kriging; 3 g/t cut-off calculated for official resource numbers.

Project and Company Profile

Integra Gold is a junior gold exploration company advancing projects in Val-d'Or, Québec, one of the top mining jurisdictions in the world. The Company's primary focus is its high-grade Lamaque South project. In the fall of 2014, Integra completed the accretive acquisition of the Sigma Mill and Mine Complex, a fully permitted 2,200 ton per day mill and tailings facility. With major federal and provincial permits in place, existing infrastructure and significant exploration potential, this acquisition removed major costs and shortened timelines typically associated with mine projects. Integra has raised over $125 million since 2013, at successively higher share prices, despite depressed gold prices. In August 2015, Eldorado Gold Corporation completed a strategic investment in Integra, acquiring 15% of the outstanding common shares. Integra was named to the TSX Venture top 50 performers in 2015 and the OTCQX Best 50 award for 2015.

Qualified Persons

The Lamaque project is under the direct supervision of Hervé Thiboutot, Eng., Senior Vice-President of the Company, Jacques Simoneau, P. Geo., Exploration Manager of the Company, François Chabot, Eng., Operations Manager, Jessy Thelland, P. Geo., underground Chief Geologist at Integra. The technical content of this press release has been reviewed and approved by Mr. Chabot and Mr. Thiboutot, Qualified Persons ('QPs') as defined by the National Instrument 43-101.

In addition, each of the individuals listed below are independent QP for the purposes of NI 43-101. All scientific and technical information in this press release in respect of the Lamaque Project or the PEA is based upon information prepared by or under the supervision of those individuals. For InnovExplo Inc., François Girard, Eng. (Mining); for Geologica, Daniel Gaudreault, Eng. (Geology); for GeoPointcom, Christian D'Amours, P. Geo. (Resources); for Amec Foster Wheeler Environment and Infrastructure, Stéphan Bergeron, Geo., M.Eng. (Environment) and for WSP Canada Inc., Marianne Utiger, Eng. (Metallurgy).

Technical Report

Further information about the PEA and the resource estimate referenced in this news release, including information in respect of data verification, key assumptions, parameters, risks and other factors, will be provided in the NI 43-101 technical report on the Lamaque Project that the Company will file on SEDAR under the Company's SEDAR profile at www.sedar.com within 45 days.

ON BEHALF OF THE BOARD OF DIRECTORS

Stephen de Jong
CEO & President

CONTACT INFORMATION

Corporate Inquiries: Chris Gordon: [e-mail]

Or visit the company website: www.integragold.com

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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 news release.

Cautionary Note Regarding Forward-Looking Statements: Certain disclosures in this release constitute forward-looking statements, including timing of completion of an updated resource estimate, timing of completion of a technical report summarizing the results of the updated PEA, cash flows, pre-production capital expenditures, development costs, extraction rates, life of mine cost estimates, timing of completion of underground exploration ramp, underground mining methods, transportation and delivery of mineralized material, expansion of tailing ponds life, potential construction of a new tailings management facility, number of new employees and timing of completion of drilling at Lamaque. In making the forward-looking statements in this release, the Company has applied certain factors and assumptions that are based on the Company's current beliefs as well as assumptions made by and information currently available to the Company, including that the Company is able to obtain any government or other regulatory approvals, that the Company is able to procure personnel, equipment and supplies required for its exploration and development activities in sufficient quantities and on a timely basis, that actual results are consistent with management's expectations, that the exchange rate remains at or near its current rate and that metal and mineral sale prices remain at or near current levels. Although the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect, and the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such risk factors include, among others, those matters identified in its continuous disclosure filings, including its most recently filed MD&A. Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.