Northern Lion Gold Corp.

Northern Lion Gold Corp.

January 31, 2007 15:22 ET

Northern Lion Granted Moura Zinc/Lead Exploration Licence in Portugal

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 31, 2007) - Northern Lion Gold Corp. (the "Company") (TSX VENTURE:NL)(FWB:N3E) has been awarded the exclusive right to explore for base and precious metals in an area of approximately 374 square kilometres in the Moura-Vila Verde de Ficalho region of southeastern Portugal, some 180 kilometres east-southeast of Lisbon.

The exploration licence, which was awarded through a competitive bidding process, is valid for an initial period of two years and requires minimum exploration expenditures of EU311,250 in the first year and EU553,000 in the second year. Three one-year extensions are available, subject to meeting certain conditions. Mineral production from the licence is subject to a 3% net smelter return royalty in favour of the Government of Portugal.

Company President, John Lando, commented, "We are pleased to have won the competitive bidding for this project. With the current strength of base metal prices, the licence has the potential to be very valuable. In a short period of time, we have assembled an impressive package of land, (some 600 square kilometres) within two licence blocks in highly-prospective areas of Portugal: Cercal, located in the Iberian Pyrite Belt, and Moura, located in central Portugal."

The Moura Licence

A number of zinc-lead occurrences are known within the licence and are associated with Cambrian dolomite which is usually exposed at the crests of northwest-trending anticlinal features, within a broad band some 8 kilometres wide by 25 kilometres long. The area is situated in the Ossa-Morena geotectonic domain of the Hercynian Orogen.

The most significant of these occurrences is the Preguica deposit, located on the east side of the licence, which was explored by diamond drilling (37 holes) and underground (two levels 40 metres and 80 metres below the surface) during the 1950s and 1960s by the Portuguese government and Compagnie Royalle Austrienne des Mines (formerly Union Miniere) ("Austrienne"). The mineralized body dips moderately (45 degrees to 65 degrees) to the east and comprises an upper oxidized zone (smithsonite, hydrozincite, cerrusite, descloizite), to a depth below surface of some 90 metres, and a lower sulphide zone (sphalerite, galena, pyrite).

The previous work identified two mineralized lenses, each about 350 metres long by up to 100 metres in length, and, locally, reaching maximum widths in excess of 30 metres, over a horizontal distance of 800 metres. Mineralization is open at depth. Austrienne calculated a geological estimate for the deposit of 1 million tonnes averaging 8% zinc and 2% lead (this estimate predates National Instrument 43-101 ("NI 43-101") and was not prepared in accordance with its requirements). Potential for additional mineralization exists along strike to the northwest and southeast, and elsewhere within the Preguica anticline.

A second occurrence, the Vila Ruiva deposit, is located approximately one kilometre to the southeast of Preguica, on the same structure, and consists of zinc secondaries and important amounts of hematite, goethite and clay minerals filling a Tertiary karst developed in dolomite. Recorded production was 12,694 tonnes, grading 42% zinc. Zinc values (to 3.14% over 1.5 metres) have been encountered in drill holes completed both down-dip and along strike.

In the Enfermarias deposit, located in the northern part of the licence, stratabound zinc-lead mineralization is hosted by hydrothermally altered Lower Cambrian metavolcanics. This is a "blind" deposit, at depths between 80 and 420 metres, discovered by the Portuguese government in the late 1980s as a result of drilling designed to investigate anomalous geochemical and geophysical results. Reported assay values from drilling are generally 4% zinc and 1% lead, but higher grades were encountered; the best being 13.58% zinc and 1.74% lead over 2.10 metres. The mineralization is open to extension along strike and down-dip.

2007 Exploration Program

The 2007 exploration program, to commence immediately, will comprise data compilation and modeling, detailed geologic mapping in areas of interest, soil sampling, mapping and sampling of old workings, trenching (750 metres) and diamond drilling (1,500 metres). This work will be carried out by GEOLOG.-.Gabinete de Geociencias, Ltd., of Lisbon, under the supervision of Henrik Wik, M.Sc. (Geology and Mineralogy), Exploration Manager for Northern Lion Gold OY, the Company's wholly-owned European subsidiary.

Quality Control and Quality Assurance

All exploration activities of the Company are under the direction of its Vice President, Exploration, John R. Fraser, P.Geo. (BC), who is a "qualified person", as defined by NI 43-101 of the Canadian Securities Administrators. Mr. Fraser is also responsible for the technical content of this news release.

Geological and exploration data and resources estimates contained herein are taken from historical records that predate NI 43-101. Although the Company has no reason to doubt the accuracy of this data, they are not compliant with the requirements of NI 43-101 and should not be relied upon. Drill intersections reported are believed to be core lengths and may not be the true width of mineralization.

About Northern Lion

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. The Company is committed to building a strong portfolio of projects within mining-friendly and infrastructure-rich areas of Europe.


John Lando, President

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

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