Northern Freegold Resources Ltd.

Northern Freegold Resources Ltd.

December 22, 2006 16:04 ET

Northern Freegold Closes First Tranche Financing of $2.79M

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 22, 2006) - Northern Freegold Resources Ltd. (TSX VENTURE:NFR) has closed the first tranche of a non-brokered public offering as announced on December 5th and 7th, 2006. The financing was comprised of 2,637,993 flow-through units and 719,000 non-flow-through units for gross proceeds of CDN $2,794,842.

The flow-through units priced at $.85 per unit each consist of a flow-through common share with one half of a non-flow-through purchase warrant, each whole warrant exercisable at $1.10 for an 18 month period. The non-flow-through units priced at $.70 each consist of a non-flow-through common share with one half of a non-flow-through 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 shares will be used to finance exploration on the company's Freegold Mountain project in the Yukon Territory. A portion of these funds will qualify as Canadian Exploration Expenses ("CEE") as defined in the Income Tax Act and will be renounced for the 2006 taxation year. The net proceeds from the sale of the non-flow through units will be used for general corporate purposes.

A total of $34,148 and 100,713 units in finders fees were paid to certain individuals in relation to the offering.

Insider participation:

William (Bill) G. Harris (20,000 FT units), Susan P. Craig (120,000 FT units)

Pro-group participation: James D. MacDonald (117,000 FT 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.

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
    (877) 489-4440 or (250) 489-4440