Northern Gold Mining Inc.

Northern Gold Mining Inc.

September 14, 2009 08:30 ET

Northern Gold and ValGold Complete Option Agreement on Garrison Gold Property

TORONTO, ONTARIO--(Marketwire - Sept. 14, 2009) - Northern Gold Mining Inc. (TSX VENTURE:NGM) has entered into an Option Agreement with ValGold Resources Ltd. (TSX VENTURE:VAL) covering 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. According to President and CEO Martin Shefsky, "This transaction is transformational for Northern Gold. It strengthens our holdings in Northern Ontario, and provides Northern Gold with a known resource and the potential for an even larger gold deposit".

The Garrison gold property is located in Garrison Township, Ontario, readily accessible from Highway 101. The property covers an area of approximately 374.5 hectares along 2.5 kilometres of the Destor-Porcupine Fault Zone. The Destor-Porcupine Fault Zone is spatially related to major gold deposits in an area from Timmins, Ontario to Normetal, Quebec, including the Holt-McDermott and Holloway gold mines of St. Andrew Goldfields Ltd.

Four mineralized gold zones (JP, JD, RP and East) have been identified on the Garrison gold property. A NI 43-101 compliant technical report on the property filed on SEDAR ( on 13 May 2008 by ValGold Resources Ltd. concludes that these four mineralized zones contain both an indicated resource and an inferred resource. The JD and RP zones have only been tested to a vertical depth of 250 metres, as revealed during compilation of the historic data. Two holes (N-88-87 completed by Jonpol in 1988, G-06-37 completed by ValGold in 2006) intersected the main JP zone at a depth of 600 metres. Both returned intersections confirming down-dip continuation of the gold mineralization. All four zones require additional in-fill and step-out drilling.

According to the NI 43-101 technical report, Hillsborough Resources extracted a 50,477 tonne bulk sample from the central part of the JP zone at an average recovered grade of 8.3 grams per tonne. A smaller bulk sample of 79 blast rounds (approximately 3,160 tonnes) was extracted by Jonpol Exploration from the JP zone in 1990 and returned calculated assays of 10.9 and 18.5 grams per tonne when sent for metallurgical testing.

The initial focus for Northern Gold will be a fifth gold zone, the Garrcon Zone, which is situated on the immediate north side of the Destor-Porcupine Fault. Following TSX-Venture approval of the option agreement, Northern Gold plans to diamond drill this zone. Northern Gold's due diligence over the past few months included compiling and digitizing all available data. This resulted in preparation of a 3-D model of past drilling to assist in determining optimal diamond drill hole location. Although there has been insufficient exploration to define a mineral resource on the Garrcon Zone, it is described in the NI 43-101 technical report as having the potential to host a bulk tonnage, open-pit operation with the potential for up to 30 million tonnes ranging in grade from 1 to 3 grams per tonne gold. The potential quantity and grade is conceptual in nature and as a result it is uncertain if further exploration will result in the discovery of a mineral resource.

Under the terms of the agreement, Northern Gold may earn up to an undivided 80 percent interest in the Garrison gold property. Northern Gold may acquire a 50 percent undivided interest in the property by making cash payments to ValGold of $1,000,000 over four years, with all or part of the payments being made in Northern Gold stock at Northern Gold's option, using a 20 day value weighted average price, upon regulatory approval. To earn the 50 percent interest Northern Gold must also complete work on the property in the amount of $4,000,000 over four years, with $500,000 being spent on the property in the first year of the agreement and not less than $750,000 to be expended in each of the subsequent years. After earning the 50 percent interest, Northern Gold may increase its interest to 80 percent by making additional cash payments of $1,000,000 over four years (again with all or part of the payments being made in Northern Gold stock equivalent, using a 20 day value weighted average price) and completing additional work on the property in the amount of $4,000,000 over four years.

Since Northern Gold will now be concentrating on exploration of the Garrison Gold Property, management has decided against further exploration of the Timmins properties. The option agreement for those properties with the Dixon-Meunier-Pegg syndicate was terminated on 15 August 2009. According to Mr. Shefsky, "the investment of manpower and financial resources into a transformational property like the Garrison made it unrealistic for Northern Gold to continue exploration of its Timmins properties. We appreciate the opportunity given us to advance these properties for the past two years, and wish great success to Mssrs. Dixon, Meunier, and Pegg."

This Press release has been reviewed by Brad Leonard P.Geo., exploration manager for Northern Gold Mining Inc., who is the "Qualified Person" as defined by NI 43-101 for this project.

Northern Gold Mining Inc. is a Toronto based junior resource company dedicated to gold exploration in Northern Ontario.

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

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