NEW SLEEPER GOLD CORPORATION

NEW SLEEPER GOLD CORPORATION

February 24, 2005 17:05 ET

New Sleeper Gold Corporation Announces its Results for the Third Quarter Ended December 31, 2004


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: NEW SLEEPER GOLD CORPORATION

TSX VENTURE SYMBOL: NWS

FEBRUARY 24, 2005 - 17:05 ET

New Sleeper Gold Corporation Announces its Results for
the Third Quarter Ended December 31, 2004

LONGUEUIL, QUEBEC--(CCNMatthews - Feb. 24, 2005) - New Sleeper Gold
Corporation (TSX VENTURE:NWS)(the "Company" or "New Sleeper") is pleased
to report its results for the third quarter ended December 31, 2004.
The unaudited interim financial statements and management's discussion
and analysis for the quarter ended December 31, 2004 are available
through CCN Matthews website at www.ccnmatthews.com. They are also
available on New Sleeper's website (www.newsleepergold.com) and on the
Sedar's website (www.sedar.com).

Financial Results

For the third quarter ended December 31, 2004, the Company incurred a
loss of $759,000 or $0.02 per share, and a loss for the year to date of
$1,948,500 or $0.05 per share.

Interest income related to the average cash equivalent available to the
Company for the quarter amounted to $40,600 and to $126,800 for the year
to date.

For the quarter, the Company incurred administrative expenses of
$339,200 and business development expenses amounted to $108,500, and
$1,023,600 and $360,100 respectively for the year to date.

Stock based compensation related to options granted to purchase common
shares of the Company (see note 7c to the December 31, 2004 Financial
Statements) amounted to $88,300 for the quarter and $234,600 for the
year to date. The contributed surplus was increased by the same amount.

Loss on foreign exchange for the period amounted to $255,000 and
$429,800 for the year to date and resulted mostly from timing
differences between the date where investments denominated in US dollars
were made and the exchange rate as at December 31, 2004 and from
differences in rates from March 31 to December 31, 2004 for monetary
items also denominated in US dollars.


An analysis of administrative and development expenses totaling $447,700
for the quarter and $1,383,800 for the year to date can be summarized as
follows:



Remuneration $169,600 $589,000
Travel expenses $47,500 $196,600
Investors relations $35,200 $127,500
Professional fees, legal,
accounting and other $28,200 $100,000
Insurance, rentals and
other office expenses $167,200 $370,600
$447,700 $1,383,700


Consolidated Cash Flows

Operating Activities

After making adjustments in respect of share based compensation, loss on
foreign exchange and other non-cash items, cash used in operations
totalled $566,300 for the quarter and $1,401,600 for the nine-month
period. After changes in working capital items cash flows used in
operating activities amounted to $596,700 and $1,896,400 for the quarter
and the nine-month period respectively.

Investing Activities

For the third quarter ending December 31, 2004, the participation of the
Company in exploration expenditures on the property has amounted to
$1,016,400 ($1,432,500 in cash), of which $389,900 for geology and
$518,300 in drilling and assaying costs. For the year to date,
investment amounted to $3,677,200 ($3,706,700 in cash) of which $966,300
for geology and $2,202,400 for drilling activities. An amount of $15,400
received from the Three Hills property was credited as cost recovery
against the investment.

Investments on the property are summarized in the "Consolidated
Expenditures on Exploration Projects" statement.

Investment in capital assets amount to $2,100 for the nine-month period.

On October 7, 2004, the In Trust deposit of $1,641,700 was returned to
the Company and added to the available cash and cash equivalent.

Financing Activities

There were no financing activities in the quarter.

Balance Sheet

At December 31, 2004, the Company's assets stood at $34,061,500 compared
to $36,405,400 at the beginning of the year and included $5,199,000 in
cash and cash equivalents, and $25,304,900 in exploration projects
compared to $9,162,400 and $21,627,700 respectively at March 31, 2004.

At December 31, 2004, working capital stood at $5,246,100, net of
current liabilities amounting to $343,500.

The participation of the Company in the environmental obligations to
which the Sleeper Project is subjected under the terms of permits
granted by the U.S. Bureau of Land Management ("BLM") and the Nevada
Division of Environmental Protection in connection with past operations
amounts to $1,914,500 as at December 31, 2004, compared to $2,016,200 at
the beginning of the year. As at that date, these obligations were
secured by a US$7,800,000 bond posted by the former owner. This bond was
in the process of being replaced together with the permits. As a result
of several revisions in the reclamation costs estimate, the amount of
the replacement bond required by the BLM was US $3,144,400. An
insurance company has provided insurance in respect of reclamation costs
and has agreed to provide the US $3,144,400 surety bond to replace the
one currently in place. The replacement effectively occurred on August
12, 2004. On October 7, 2004, the In trust deposit was released and 50%
of the funds was added to the Cash and cash equivalent.

The Company has further accounted for $3,488,000 in future income taxes
related to the acquisition of the Sleeper project.

As at December 31, 2004, the capital stock amounts to $34,060,000
unchanged from March 31, 2004. The contributed surplus related to stock
base compensation amounts to $893,900 compared to $659,400 and the
deficit totals $6,638,400 compared to $4,689,900 at the beginning of the
year.

Outlook

The Company has liquidity of $5,199,000 as at December 31, 2004 and
believes that it will be able to meet its commitments into 2005.

The Company is undertaking an exploration program, the main objective of
which is to define Mineral Resources (under NI 43-101) from known
mineralization, as well as to discover new mineralization. The work
program includes core drilling and RC drilling, data compilation,
including historic drill log compilation, geological mapping, target
definition and refinement, geological field work and survey. Exploration
expenditures on the work program for the 12-month ending March 31, 2005
should cost approximately $US 6 million. The joint venture partners will
equally fund the costs of this program.

Forward Looking Statements

This press release contains certain "forward-looking statements"
including, but not limited to, statements relating to operating costs,
work program, exploration budgets, and levels of activities, performance
and achievement. The forward-looking statements are based on the
beliefs, estimates and opinions of the Company on the date the
statements are made. Forward looking statements involved a number of
risks and uncertainties and there can be no assurance that such
statements will prove accurate. Actual results and future events may
differ materially from those anticipated or projected. Risk and
uncertainties which could cause results to differ from those reflected
in the forward-looking statements include risks related to fluctuations
in gold prices; changes in planned work resulting from weather,
logistical, technical or other factors; the possibility that results of
work will not fulfill expectations and realize the perceived potential
of the Sleeper project; uncertainties involved in the interpretation of
drilling results and other tests; the possibility of cost overruns or
unanticipated expenses in the work program; uncertainties related to
raising sufficient financing to fund the planned work in a timely manner
and on acceptable terms;. For a more complete discussion of the risk
factors, please refer to the "Risk Factors" section in the Filing
Statement filed by New Sleeper Gold Corporation on March 19, 2004 on the
Sedar web site and accessible at www.sedar.com.

Additional information

Additional information about the Company is available through regular
filings and press releases on SEDAR (www.sedar.com) and on the Company's
website (www.newsleepergold.com).

The consolidated financial statements and the Management's Discussion
and Analysis (MD&A) along with explanatory notes for the third quarter
ended December 31, 2004 are available in PDF format through the
CCNMatthews website at:

http://www2.ccnmatthews.com/database/fax/2000/nws0224.pdf

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