Nevsun Declares Fourth Quarterly Dividend of 2016

VANCOUVER, Dec. 9, 2016

This dividend qualifies as an 'eligible dividend' for Canadian income tax purposes.

Dividend Reinvestment Program

Nevsun's dividend reinvestment plan ("DRIP") allows shareholders to reinvest their cash dividends into additional common shares of Nevsun.

Cliff Davis, Nevsun's CEO, commented: "Our dividend is core to our capital allocation philosophy.  We encourage investors to sign-up for the DRIP.  Cash not used for dividends will be invested in the world class Timok development project and to generate additional organic growth from our extensive asset portfolio."

Benefits of the DRIP for Nevsun shareholders:

• Commission free – Shareholders do not pay any costs or commissions.
• Discount to market – Common shares issued at a 3% discount to the market price.
• Full or partial participation – Shareholders can elect to receive all or part of their dividend in shares.
• Participation rights – Shareholders can change their DRIP participation level at any time.

Participation in the DRIP is open to all registered and beneficial shareholders in Canada, the United States and other jurisdictions where participation in the DRIP would not be prohibited or restricted by applicable law. Dividends are paid only when declared by Nevsun's Board of Directors and the Company may, in its discretion, change or eliminate the discount applicable to treasury acquisitions, or any other terms of the DRIP.