Northern Freegold Resources Ltd.
TSX VENTURE : NFR
OTC Bulletin Board : NFRGF
FRANKFURT : 8NG

Northern Freegold Resources Ltd.

July 18, 2011 20:11 ET

Northern Freegold Announces $8 Million Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 18, 2011) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Northern Freegold Resources Ltd. (TSX VENTURE:NFR)(OTCBB:NFRGF)(FRANKFURT:8NG) is pleased to announce that it intends to complete a non-brokered private placement of up to 26,666,666 units at a price of $0.30 per unit, for gross proceeds of up to $8 million. Each unit will consist of a common share and a share purchase warrant, each warrant being exercisable to acquire an additional share at $0.45 for 18 months following the closing.

Net proceeds from the private placement will be applied toward advancement of the Company's Yukon mineral properties and for general working capital purposes.

The Company will pay commissions and finders' fees of 7% cash and 7% broker warrants or 7% in units in connection with the financing. The finder warrants will have the same terms as the warrants forming part of the units. The Company may accept subscriptions of up to an additional 25% of the offering, for additional gross proceeds of up to $2 million. The additional offering would involve the issuance of up to 6,666,666 additional units.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful. The securities have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

Northern Freegold is a rapidly advancing Canadian-based precious metals exploration and development company that brings local expertise and strong management to focus on the development of economic mineral resources on the district-scale Freegold Mountain gold and copper project in the Yukon and the Burro Creek gold and silver property in Arizona.

Northern Freegold Resources Ltd.

On behalf of the Board of Directors

John Anderson, Chair

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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