Northern Lion Gold Corp.

Northern Lion Gold Corp.

May 12, 2005 12:15 ET

Northern Lion to Explore in Iberian Pyrite Belt

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 12, 2005) - Northern Lion Gold Corp. (TSX VENTURE:NL) has reached an agreement with SES Sweden AB ("SES") to explore an area of geological interest previously identified by SES in the Iberian Pyrite Belt, in Portugal.

Under the agreement, Northern Lion will have the option to acquire a 95% interest in exploration licenses, in consideration of payments to SES totalling 80,000 EURO, over four years. SES will retain the remaining 5% interest in the property, which will be free carried until Northern Lion obtains a bankable feasibility study on the property. SES has also granted to Northern Lion a ten-year right of first refusal on any proposed transfer by SES of any interest it may have in properties in Portugal, Spain or Cyprus.

Northern Lion has developed significant infrastructure in Finland, with strong geological experience and contacts. To capitalise on this expertise, the company is actively reviewing opportunities in Europe that that meet its project criteria in terms of size and mineral potential.

The Iberian Pyrite Belt

The Iberian Pyrite Belt has been actively mined for over 2,000 years and hosts some of the world's richest and largest volcanogenic massive sulphide deposits, including Rio Tinto, Tharsis, Neves Corvo and Aljoustrel. Some 80 deposits, containing more than 1,700 million metric tonnes (previously-mined and present reserves) of sulphide ore, are known to occur within the belt.

Although gold (averaging 0.8 gram/tonne) is present in these sulphide deposits, there are no active gold mines in the belt. Exploration, typically, has been focused on massive sulphides, with little or no emphasis on gold and associated elements. SES's technical review of the belt has identified several areas that are considered prospective for gold mineralization, as well as for massive sulphides.

About SES

SES is a private company, the principals of which are Dr. Alf Bjorklund and Dr. Frederic Ros. Dr. Bjorklund was the head of the Department of Geochemistry for the Geological Survey of Finland from 1973-86 and, later, a professor of Applied Geochemistry at Turku University. Dr Ros was the head of exploration for the Geological Survey of Sweden until 1992, after which he worked as an exploration consultant to the private sector. SES has explored in the Iberian Pyrite Belt and in Cyprus since 1998 and has developed several prospective target areas in Portugal and Spain, and, separately, on properties in Cyprus.

Haveri Update

Geochemical and structural modelling continues from recent drill results at the Haveri gold project. Core from recent drill holes has been split and logged, and is currently at the assay lab. Assay results are expected shortly from drill hole TS-07, which encountered silicified rock 75 meters beneath visually-similar rock, in recently-announced hole TS-06. Hole TS-06 returned an interval of 9.20 meters grading 27.20g/t gold.

About Northern Lion

Northern Lion is a Canadian based mining company involved in the exploration and development of the Haveri project, located 175 kilometres north of Helsinki, Finland. The project encompasses an area of widespread gold and copper mineralization, within altered mafic and felsic volcanic and volcaniclastic rocks of the early Proterozoic Tampere Schist Belt, over an area 1.5 kilometers by 2.0 kilometers. Northern Lion owns 100% of the project.


John Lando, President

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