Northern Freegold Resources Ltd.

Northern Freegold Resources Ltd.

July 17, 2007 21:09 ET

Northern Freegold Closes Financing of $4.67 Million

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 17, 2007) - Northern Freegold Resources Ltd. (TSX VENTURE:NFR) has closed the non-brokered public offering as announced on May 22, 2007 and July 16, 2007. The financing was comprised of 4,741,000 flow-through units and 1,253,142 non flow-through units for gross proceeds of CDN $4,670,000.

The flow-through units consist of a flow through common share priced at $.80 per share with one half of an 18 month non-flow through common share purchase warrant priced at $1.10. The non-flow through units consist of a non-flow through common share priced at $.70 with one half of a non-flow-through common share purchase warrant, each whole warrant exercisable at $1.10 for an 18 month period.

The common share purchase warrants are subject to an accelerated expiry if the published closing trade price of the common shares on the TSX Venture Exchange is greater than or equal to $1.25 for any 10 consecutive trading days, in which event the holder will be given notice that the warrants will expire 30 days following the date of such notice. The common share purchase warrants may be exercised by the holder during the 30-day period between the notice and the expiration of the common share purchase warrants.

The proceeds from the sale of the flow through shares will be used to finance exploration on the company's Freegold Mountain Project and Tad/Toro and Severance Properties in the Yukon Territory. These funds will qualify as Canadian Exploration Expenses ("CEE") as defined in the Income Tax Act and will be renounced for the 2007 taxation year. The net proceeds from the sale of the non-flow through units will be used for exploration on the Burro Creek Project in Arizona and for general corporate purposes.

A total of $91,770 and 147,025 units in finder's fees were paid to certain individuals in relation to the offering.

Insider participation: Glen Diduck (12,500 FT units), Tim Termuende (6,250 FT units), Corwin Coe (62,500 FT units)

Pro-group participation: Barry Warden (62,500 FT units), Jeffrey Mackie (62,500 FT units), Brenda Mackie (125,000 FT units), Jamie Mackie (250,000 FT units), Megan Miller (20,000 NFT units)

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 Project in Arizona.

Northern Freegold Resources Ltd.

On behalf of the Board of Directors

William (Bill) G. Harris, President and Chief Executive Officer

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.
    Bernie Kennedy
    Investor Relations Manager
    1-877-489-4440 or (250) 489-4440