Northern Gold Mining Inc.

Northern Gold Mining Inc.

March 11, 2010 15:04 ET

Northern Gold Announces New Investor Relations Consultant and Company Auditor, Grants Stock Options

TORONTO, ONTARIO--(Marketwire - March 11, 2010) - Northern Gold Mining Inc. ("Northern Gold" or "the Company") (TSX VENTURE:NGM) is pleased to announce that, subject to regulatory approval, it has retained the services of JM Corp. to provide various investor relations consulting services for the Company in connection with Northern Gold's interactions with broker-dealers, securities advisors, investment funds, and members of the investment community. JM Corp., a Toronto based investor relations consultancy of which Paul MacDonald is the principle, specializes in small to mid cap public companies and provides its clients with capital markets advice. JM Corp also provides assistance with company road shows, facility and site visits, and corporate presentations to investors. Northern Gold will pay JM Corp. a monthly fee of $6,000 under a six months contract which either party may terminate on written notice. Pursuant to the agreement, Northern Gold will also grant 200,000 incentive stock options to JM Corp, subject to regulatory approval. The options vest at 25% every three months and are exercisable at a price of $0.25 per share for a period equal to the lesser of 30 days after termination and five years. JM Corp. can also earn a bonus of 5% on "hard money" non-brokered financing that JM executes with no other commission payable, and a bonus of 3% on "flow-through" non-brokered financing that JM executes with no other commission payable.

Northern Gold President and CEO Martin Shefsky states, "Northern Gold is pleased and excited about our association with JM Corp. From working with Paul MacDonald in the past, I am confident in his knowledge, ability, and work ethic. JM Corp. will help take Northern Gold to the next level."

The Company is also pleased to announce that its Board of Directors has appointed McGovern, Hurley, Cunningham, LLP, Chartered Accountants, Licensed Public Accountants ["McGovern Hurley"] as Northern Gold's new auditor, replacing Collins Barrow Toronto L.L.P. Chartered Accountants ["Collins Barrow"]. At the request of Northern Gold, Collins Barrow has resigned as auditor of the Company effective 26 February 2010. The Audit Committee and Board of Directors of the Company have approved and appointed McGovern Hurley as successor auditor in place of Collins Barrow effective 26 February 2010. McGovern Hurley provides public accounting services to both private and public companies involved in all areas of business activities. They are registered with the Canadian Public Accountability Board and the Public Company Accounting Oversight Board to perform audit services for reporting issuers in Canada and the United States, respectively. They are also registered with the Investment Industry Regulatory Organization of Canada as an approved panel auditor.

Northern Gold would like to thank Collins Barrow for their services in the past.

There were no reservations in the reports of Collins Barrow for the two most recently completed fiscal years, or for any period subsequent to the most recently completed period for which an audit report was issued and preceding the date of Collins Barrow's resignation. There were no reportable events as defined in National Instrument 51-102 Section 4.11 between the Company and Collins Barrow or between the Company and McGovern Hurley.

"The Management and Board of Directors look forward to taking advantage of McGovern Hurley's experience in helping small companies grow and prosper as we continue to expand our operations," said Eric E. V. Szustak, CFO of Northern Gold.

Pursuant to regulatory requirements, Northern Gold has filed a Notice of Change of Auditor ["Notice"] and has received a response letter from Collins Barrow confirming their agreement with the information provided in the Notice. The Company has also received a response from McGovern Hurley confirming their agreement with the information provided in the Notice. The Notice and response letters have been filed on SEDAR.

In addition to the options granted to JM Corp., Northern Gold has granted 1,335,000 stock options at an exercise price of $0.25 to members of the Board of Directors, management, and certain contractors. All of the options were granted under the previously approved stock option plan and have an expiry date of 11 March 2015. 

Northern Gold Mining Inc. is a Toronto based junior resource company dedicated to gold exploration in the Kirkland Lake-Timmins mining camp of Northern Ontario. The Company's focus is the Garrison gold property, thirty-five patented claims in Garrison Township approximately 40 kilometres north of Kirkland Lake and 100 kilometres east of Timmins, Ontario. Northern Gold is party to an Option Agreement with ValGold Resources Ltd. covering the Garrison gold property under which it may earn up to an undivided 80 percent interest. 

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.

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