Northern Freegold Resources Ltd.

Northern Freegold Resources Ltd.

December 10, 2007 15:28 ET

Northern Freegold Announces Flow-Through Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 10, 2007) - Northern Freegold Resources Ltd. (TSX VENTURE:NFR) is pleased to announce that it intends to complete a non-brokered private placement to arms-length and non arms-length investors. Application will be filed with the TSX Venture Exchange (TSX-V) to sell flow-through units at a price of $CDN 0.95 per unit. Each flow-through unit will consist of a flow-through common share and one-half of a non-flow-through purchase warrant, each whole warrant exercisable at $CDN 1.50 for an 12-month period.

A 5% commission or finders' fee payable in cash or 7% commission or finders' fee payable in non-flow-through units will be paid to registered dealers or arms-length agents responsible for sourcing investors for this financing. The financing is expected to close on or before December 13, 2007.

Maximum gross proceeds of the offering are expected to be up to $CDN 4,000,000. The proceeds from the sale of the shares will be used to finance exploration on the company's Freegold Mountain project in the Yukon Territory. The flow-through unit expenditures will qualify as Canadian exploration expenses as defined in the Income Tax Act and will be renounced for the 2007 taxation year.

As previously reported by a TSX-V bulletin on December 6, 2007, Northern Freegold would like to clarify that it has not entered into agreements and has no intention to enter into agreements for oil and gas or mineral properties in Alberta, at this time. Northern Freegold would also like to clarify that the TSX-V bulletin released December 7, 2007 regarding the closing of a financing, referred back to the financing announced in May 2007 (see NFR press release PR#07-09).

Northern Freegold is a Canadian-based resource exploration and development company which relies on local expertise and strong management to focus on development of economic reserves on the district-scale Freegold Mountain Project in the Yukon and the Burro Creek Property in Arizona.

Northern Freegold Resources Ltd.

On behalf of the Board of Directors

William (Bill) G. Harris, President and Chief Executive Officer

This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Northern Freegold Resources Ltd.
    William (Bill) G. Harris
    President and Chief Executive Officer
    (604) 893-8757
    (604) 893-8758 (FAX)