NEWS RELEASE June 28, 2016

Stock Symbol: SGF: TSX Saskatoon, Saskatchewan 2016 CORE DRILLING PROGRAM AND GEOTECHNICAL WORK

George H. Read, P. Geo., Senior Vice President Exploration and Development of Shore Gold Inc. ("Shore" or the

"Company") is pleased to announce that the NQ core drilling program has commenced on the western side of the Orion South Kimberlite. The current program includes some 8 holes with a total of approximately 1,600 metres of drilling on the Orion South Kimberlite, located within the claims of the Fort a la Corne Joint Venture ("FALC- JV"). This core drilling is required to further expand the geological model of the Orion South kimberlite continuing from the successful program of 2015. The core drilling program is being conducted by Newmac Industries Ltd. of Prince Albert, Saskatchewan. In addition, Shore has contracted In-Situ Engineering of Snohomish, Washington, USA to conduct a geotechnical program, which includes in situ shear strength testing of the glacial till sediments and Lower Colorado Shale, to depths of up to 140 metres below surface. These sediments form a major part of the overburden above the Star Kimberlite and their technical characteristics need to be understood for revised mine pit designs. Shore geologists are responsible for the supervision of the drilling and geotechnical programs and subsequent detailed core logging.

Senior Vice President Exploration and Development, George Read, states: "The core drilling program on Orion South is an important extension to the 2015 core drilling program. The selected locations of these core holes augment the 100 metre grid drilling program already completed on the Orion South Kimberlite and can assist in further extending the mineral resources and geological models of the Orion South Kimberlite. The geotechnical program is included in the recommendations of the previous Feasibility Study of 2011. The Company is working towards the completion of an Updated Feasibility Study based on the Revised Resource Estimate completed in 2015 as well as a revised mine plan, where new technology is applied to more efficiently remove the sand and clay of the overburden, in addition to the application of new technology in the processing plant. Preliminary calculations suggest that such an Updated Feasibility Study, with a new mine plan, can positively change the economic model for the Project by increasing the Mineral Resource estimate and reducing the pre-production capital costs and schedule to diamond production."

The Star-Orion South Diamond Project is located in central Saskatchewan some 60 kilometres east of the city of Prince Albert. The Project is in close proximity to established infrastructure, including paved highways and the electrical power grid, which provide significant advantages for future mine development. The Technical Report on the Revised Resource Estimate for the Star-Orion South Diamond Project dated November 9, 2015 provided an updated Mineral Resource Estimate for the Star and Orion South kimberlite deposits: Indicated Mineral Resource of 393 million tonnes containing 55.4 million carats of diamonds at a weighted average price of US$210 per carat. In addition to the Indicated Mineral Resource Estimate, the Star and Orion South Kimberlites include Inferred Resources containing 11.5 million carats. Accordingly, the mineral resources and economic assessment previously disclosed by Shore for the Project should no longer be relied upon.

Shore is a Canadian based corporation engaged in the acquisition, exploration and development of mineral properties. Shares of the Company trade on the TSX Exchange under the trading symbol "SGF".

Caution Regarding Forward-Looking Statements

This news release contains forward-looking statements as defined by certain securities laws, including the "safe harbour" provisions of Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. Forward-looking information is often, but not always, identified by the use of words such as "anticipate", "believe", "expect", "plan", "intend", "forecast", "target", "project", "guidance", "may", "will", "should", "could", "estimate", "predict" or similar words suggesting future outcomes or language suggesting an outlook. In particular, statements regarding Shore's future operations, future

exploration and development activities or other development plans constitute forward-looking statements. By their nature, statements referring to mineral reserves, mineral resources or TFFE constitute forward-looking statements.

Forward-looking statements in this press release include, but are not limited to statements with respect to the proposed core drilling program (including the number of holes to be drilled, the metres to be drilled, the timing of the drilling and the duration of the program), the proposed geotechnical program and Shore's objectives for the ensuing year including, the optimization of the feasibility study and the anticipated positive change in the economic model for the Project; the aim of Shore to undertake additional studies and the potential upgrading of the Feasibility Study.

These forward-looking statements are based on Shore's current beliefs as well as assumptions made by and information currently available to it and involve inherent risks and uncertainties, both general and specific.

Risks exist that forward-looking statements will not be achieved due to a number of factors including, but not limited to, developments in world diamond markets, changes in diamond prices, risks relating to fluctuations in the Canadian dollar and other currencies relative to the US dollar, changes in exploration, development or mining plans due to exploration results and changing budget priorities of Shore or its joint venture partners, the effects of competition in the markets in which Shore operates, the impact of changes in the laws and regulations regulating mining exploration, development, closure, judicial or regulatory judgments and legal proceedings, operational and infrastructure risks and the additional risks described in Shore's most recently filed Annual Information Form, annual and interim MD&A. Shore's anticipation of and success in managing the foregoing risks could cause actual results to differ materially from what is anticipated in such forward-looking statements.

Although management considers the assumptions contained in forward-looking statements to be reasonable based on information currently available to it, those assumptions may prove to be incorrect. When making decisions with respect to Shore, investors and others should not place undue reliance on these statements and should carefully consider the foregoing factors and other uncertainties and potential events. Unless required by applicable securities law, Shore does not undertake to update any forward-looking statement that is made herein.

For further information: [email protected] or (306) 664-2202 www.shoregold.com

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