Northern Gold Mining Inc.

Northern Gold Mining Inc.

December 21, 2009 14:08 ET

Northern Gold Accelerates Warrants

TORONTO, ONTARIO--(Marketwire - Dec. 21, 2009) - The Directors of Northern Gold Mining Inc. ("Northern Gold" or "the Company")(TSX VENTURE:NGM) announce that the Company has elected to accelerate the expiry of 2,216,329.5 warrants ("Warrants") to purchase common shares ("Common Shares") of the Company issued on 24 July 2009 as part of a private placement of units of the Company. Each Warrant entitles the holder to purchase one Common Share at a price of $0.10 per share. The Warrants will now expire on 21 January 2010. If all of the Warrants are exercised, the Company will receive gross proceeds of approximately $221,633. The net proceeds of the Warrant exercises will be used to advance the Company's Garrison gold property and for working capital purposes.

Pursuant to the terms of the warrant certificates governing the Warrants, the Company has the right to accelerate the expiry date of the Warrants in the event that the Common Shares trade at a closing price of greater than $0.20 on the Toronto Venture Stock Exchange for fifteen (15) or more consecutive trading days following 25 November 2009 (the "Acceleration Event"). To exercise this right, the Company must, within thirty (30) days of the Acceleration Event, elect to accelerate the expiry date of the Warrants by giving notice to the holders ("Notice") by way of a news release, in which case the expiry date of the Warrants is accelerated to the date that is thirty (30) days after the first date after which the Notice is given.

This news release constitutes Notice that the Acceleration Event has occurred, in that the closing price of the Common Shares on the Toronto Stock Exchange has been greater than $0.20 for fifteen (15) or more consecutive trading days, and the Company has elected to accelerate the expiry date of the Warrants.

Warrant holders may exercise their rights to acquire Common Shares by duly completing and executing the exercise form attached to the Warrant Certificate representing their Warrants before 4:00 p.m. (Toronto time) on 21 January 2010 and surrendering the Warrant Certificate to Capital Transfer Agency Inc. (the "Warrant Agent") together with a certified cheque, money order, or bank draft in lawful money of Canada payable to Capital Transfer Agency Inc. or to the order of the Company at par at the principal office of the Warrant Agent in the City of Toronto for the aggregate exercise price for the Common Shares subscribed for.

Northern Gold Mining Inc. is a Toronto based junior resource company dedicated to gold exploration in the Kirkland Lake mining camp of Northern Ontario. Its focus is the Garrison gold property, which contains an indicated resource of 253,100 tonnes grading 7.77 grams per tonne gold (63,200 ounces) and an inferred resource of 1,555,800 tonnes grading 4.93 grams per tonne gold (246,540 ounces), per a NI 43-101 report filed by Northern Gold on SEDAR on 21 October 2009.

CAUTIONARY STATEMENT: This News Release includes certain "forward-looking statements". All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, future plans and objectives of Northern Gold Mining Inc., are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Northern Gold Mining Inc.'s expectations are the risks detailed herein and from time to time in the filings made by Northern Gold Mining Inc. with securities regulators.

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 release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

Contact Information