Northern Lion Gold Corp.

Northern Lion Gold Corp.

June 01, 2006 13:48 ET

Northern Lion Acquires Nynasberget Gold Prospect

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 1, 2006) - Northern Lion Gold Corp. (the "Company") (TSX VENTURE:NL)(FWB:N3E) has reached an agreement with Lappland Goldminers AB ("Lappland Goldminers") to acquire a 100% interest in the Nynasberget gold prospect, in central Sweden. Previous exploration of the Nynasberget prospect has established the presence of high-grade gold in three dimensions.

Company President, John Lando, commented: "This acquisition is consistent with our commitment to the Scandinavian region and allows us to build upon the extensive technical infrastructure that we have already assembled in the area. Limited previous drilling on the Nynasberget prospect has established the presence of high-grade gold mineralization. We believe that it offers excellent potential for the definition of a gold resource."

Under the property purchase agreement, the Company will pay to Lappland Goldminers SEK$4,000,000 (approximately CDN$611,200), payable by the issuance of approximately 1,018,667 common shares of the Company (the "Shares") at a deemed price of $0.60 each. The agreement provides that Lappland Goldminers will hold the Shares for a period of two years, after which the Company will have the first right to purchase or place the Shares should Lappland Goldminers wish to sell all or a portion of them. The agreement also contains provisions regarding the voting of the Shares.

The agreement is subject to the approval of the TSX Venture Exchange.

The Nynasberget Gold Prospect

The Nynasberget prospect is located in the Ragunda County in the Jamtland region of Sweden, approximately 400 km north of Stockholm and approximately 200 km south-southwest of Lappland Goldminers' Faboliden deposit.

Geological Setting

The geology at Nynasberget consists of Precambrian metasediments, greywackes and a schist suite which varies from quartzite to iron rich chert. The units appear to dip locally to the south and southeast. The metasediment units have been intruded by later granites, pegmatites and quartz veins. The rocks are tightly folded and faulted to some degree by WNW to ESE and NE to SW striking faults.

The greywackes are considered to be representative of a distal marine shelf environment and the quartzites and iron rich cherts of exhalative origin from sea floor hydrothermal springs hence being stratiformed.

Exploration History

The area was originally identified by till geochemistry and the discovery outcrop was found in a road cut. The outcrop is an iron-stained exhalite unit approximately 10 metres ("m") thick and grading 2.7 grams per tonne ("g/t") gold.

The area has undergone further exploration consisting of ground magnetic, and induced polarization (IP), surveys. Some of the anomalies have been tested by diamond drilling, totaling 2,967.15 m in 50 drill holes. The drilling was carried out by LKAB and SKAB between 1986 and 1997.

Previous Drilling Highlights

Previous drilling encountered significant gold mineralization in a number of intervals in iron rich strata in two areas of the Nynasberget prospect - east and west of Abbortjarnen Lake. Best results are summarized, below:

West of Abbortjarnen Lake

Hole From (m) To (m) Length (m) Au (g/t)
97010 31.72 32.50 0.78 8.99
92005 26.80 27.30 0.50 5.50
97030 46.65 47.50 0.85 5.82

East of Abbortjarnen Lake

Hole From (m) To (m) Length (m) Au (g/t)
97028 95.30 96.40 1.10 11.40
92001 24.80 25.70 0.90 9.50
86001 45.60 47.70 2.10 4.03

Based on this drilling, the Nynasberget mineralization appears to be located on the northern limb of a synform structure with fold axis oriented 60 degrees west of north (Abbortjarnen West). Recent interpretations suggest that previous drilling may not have been optimally oriented to properly test the structure. The southern limb has not yet been tested.

Quality Control/Quality Assurance

The Company's exploration activities are under the direction of John R. Fraser, P.Geo. (BC), the Company's Vice President, Exploration and a "Qualified Person" as defined by National Instrument 43-101. Mr. Fraser is responsible for the contents of this news release.

Technical data relating to Nynasberget gold prospect and the previous exploration of it are taken from published records and are believed to be reliable; however, they have not been independently verified by the Company. Mineralized intervals are drill core lengths and may not be the true widths of mineralization.

About Northern Lion Gold Corp

Northern Lion is a Canadian mineral exploration company listed on the TSX Venture Exchange and the Frankfurt Exchange. It owns 100% of the Haveri gold project, a past gold producer in southern Finland, and is committed to building a strong portfolio of projects within mining-friendly and infrastructure-rich areas of Scandinavia. The Company has also recently been granted a mineral exploration license over an extensive area of the prolific Iberian Pyrite Belt, in southern Portugal. The Company is well funded to continue to define and explore its existing projects and to acquire and explore new projects.


John Lando, President.

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

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