Northern Freegold Resources Ltd.

Northern Freegold Resources Ltd.

December 22, 2008 13:00 ET

Northern Freegold Announces Flow-Through Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 22, 2008) - Northern Freegold Resources Ltd. (TSX VENTURE:NFR) is pleased to announce that it intends to complete a non-brokered private placement to arms-length and non arms-length investors. Application will be filed with the TSX Venture Exchange (TSX-V) to sell flow-through units at a price of $CDN 0.35 per unit. Each flow-through unit will consist of a flow-through common share and one-half of a non-flow-through purchase warrant, each whole warrant exercisable at $CDN 0.50 for an 18-month period. The financing is expected to close on or before December 31, 2008.

Maximum gross proceeds of the offering are expected to be up to $CDN 500,000. The proceeds from the sale of the shares will be used to finance exploration on the company's Freegold Mountain project in the Yukon Territory. The flow-through unit expenditures will qualify as Canadian exploration expenses as defined in the Income Tax Act and will be renounced for the 2008 taxation year.

Northern Freegold is a Canadian-based resource exploration and development company which relies on local expertise and strong management to focus on development of economic reserves on the district-scale Freegold Mountain Project in the Yukon and the Burro Creek Property in Arizona.

Northern Freegold Resources Ltd.

On behalf of the Board of Directors

William (Bill) G. Harris, CEO & COO

This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

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

Contact Information

  • Northern Freegold Resources Ltd.
    Sarah Longhurst
    Investor Relations Manager
    1-877-893-8757 or (604) 893-8757
    (604) 893-8758 (FAX)