Northland Resources Inc.
TSX VENTURE : NAU

Northland Resources Inc.

June 13, 2005 12:01 ET

North American Gold Closes Over-subscribed Financing; Raises $3.58-million

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 13, 2005) - Mr. Buck Morrow reports: North American Gold Inc. (TSX VENTURE:NAU) has closed the second tranche of its private placement previously reported on April 4th, 2005 raising an additional $2,198,799. In total, the placement raised $3.58-million and was oversubscribed by nearly $900,000.

In the second tranche, the Company sold:

- 2,572,222 units via a brokered placement at a price of $0.45 per unit to raise gross proceeds of $1,157,500.

- 2,313,997 units via a non-brokered private placement at a price of $0.45 per unit to raise gross proceeds of $1,041,299.

Each unit consists of one common share and one-half of a common share purchase warrant. Each whole warrant entitles the holder to purchase one additional common share of the Company at $0.45 for one year.

In the brokered placement, the Company has paid to the agents a cash fee equal to 7 per cent of the subscription proceeds realized from the sale of the units by them. The Company also issued to the agents 257,222 broker's options, which is equal to 10 per cent of the number of units sold under the brokered private placement. Each broker's warrant entitles the holder to purchase one common share of the Company at a price of 45 cents for one year.

All of the above securities have a four-month hold period from the date of issuance, expiring on October 11, 2005.

The net proceeds of the placement will be used to advance the exploration and evaluation of the Company's Norra-Barsele project in Sweden, its extensive land package covering iron-oxide-copper-gold targets in the Pajala shear zone in Sweden and Finland, and for general working capital purposes.

Buck Morrow, the President of North American Gold, said "I'm delighted that we were able to raise more than we had planned in this financing, particularly in view of the recent difficult market conditions. It says a lot about the quality of our project portfolio and the technical programs that we have planned for the coming months that we were oversubscribed by close to a million dollars."

In addition, the Company has granted incentive stock options to certain directors and officers to purchase up to an aggregate of 182,000 shares exercisable for five years at a price of $0.55 per share.

Background

North American Gold Inc. is a well-structured, debt free junior exploration company with a portfolio of high quality gold, iron and base metal exploration projects in Sweden and Finland. The Company has an option to acquire a 60% interest in the Norra and Barsele properties in Sweden from MinMet plc by incurring a total of US $3.5 million in exploration expenditures and issuing 400,000 shares to MinMet by November 3, 2006, and has entered into an option agreement with Anglo American, plc to acquire a 100% interest in two exploration permits --the Pajala properties covering approximately 18,000 hectares of ground which host a number of known iron-oxide+copper-gold targets in Sweden. North American also recently acquired 15 exploration reservations in Finland, covering over 13,000 hectares in the mineral-rich Pajala shear zone in the western part of Finnish Lapland, near the Swedish border.

For more information on the Company, please see our website: www.northamgold.com.

ON BEHALF OF THE BOARD

Buck Morrow, President

NORTH AMERICAN GOLD INC.

The TSX Venture Exchange has not reviewed and does not take responsibility for the accuracy of this release.

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