Labor continues to hold a narrow lead in the vote recount for the final federal seat of Herbert.

Labor's Cathy O'Toole led sitting coalition MP Ewen Jones by 16 votes in the contest for the Townsville-based north Queensland seat, as of Saturday afternoon.

Labor's Cathy O'Toole won the initial count in the seat of Herbert by just eight votes. Credit:Michael Chambers

But it appears likely Labor or the Liberal National Party will end up taking the final result to the Court of Disputed Returns arguing for a fresh election.

The Australian Defence Force says 628 Army members on Exercise Hamel in South Australia during the election campaign did not cast their votes.