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

Northern Freegold Resources Ltd.

February 24, 2011 09:16 ET

Northern Freegold Identifies Initial Target Deposit at Revenue Zone, Freegold Mountain Project, Yukon

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 24, 2011) - Northern Freegold Resources Ltd. (TSX VENTURE:NFR)(OTCBB:NFRGF)(FRANKFURT:8NG) is pleased to announce based on an evaluation of historic and 2010 drill hole data from the Revenue Zone gold-rich porphyry system the following target deposit:

Revenue Zone Target Deposit Potential
 
Range of Potential     Potential Gold
Potential Ounces of Gold Potential Ounces Potential Lbs of Equivalent Ounces*
Tonnes (Grade) of Silver (Grade) Copper (Grade) (Grade)
40 to 110 0.7 to 1.1 M Ozs 5.0 to 10.0 M Ozs 130 to 280 M lbs 1.3 to 2.5 M Ozs
Million (0.3 to 0.5 g/t) (2.7 to 3.7 g/t) (0.11 to 0.14%) (0.7 to 1.0 g/t)
Range of Potential Lbs of Potential Lbs of Tungsten
Potential Tonnes Molybdenum (Grade) (Grade)
40 to 110 Million 9 to 18 M lbs 10 to 16 M lbs
  (0.007 to 0.011%) (0.006 to 0.011%)
 
*Gold equivalent (AuEq) is calculated based upon prices of US$846/oz for gold, US$14.40/oz, for silver, and US$3.31/lb for copper with no discount for metallurgical recovery in contained metal figures (Note: total contained AuEq values may not add exactly because of rounding)

The reader should be cautioned that the potential quantity and grade is conceptual in nature, that there has been insufficient exploration to define a mineral resource and that it is uncertain if further exploration will result in the target being delineated as a mineral resource.

The target deposit extends from surface to a depth of 250 m and is located adjacent to the Nucleus Deposit (see Figure 1). Management believes the Revenue target deposit and the Nucleus deposit are part of a large scale gold rich porphyry system. Indicated resources of 1.1 million ounces gold, 1.4 million ounces silver and 67.8 million lbs copper (1.4 Moz AuEq)1 and inferred resources of 0.63 million ounces gold, 1.3 million ounces silver and 62.0 million lbs of copper (0.9 Moz AuEq)2 were recently announced for the Nucleus deposit (see news release Feb. 22, 2011).

"The 2010 program at Freegold Mountain demonstrates the potential for a multi-million ounce system encompassing the Nucleus Deposit and the Revenue Zone," stated Susan Craig, President & CEO, Northern Freegold Resources Ltd. "The scale of the anomaly from the Titan Survey, combined with the resource in the Nucleus Deposit and the target deposit in the Revenue indicate an open ended large scale gold rich system."

148.5 million tonnes at 0.70 g/t gold, 0.90 g/t silver and 0.06% copper at 0.40 AuEq cutoff; 241.4 million tonnes at 0.47 g/t gold, 0.98 g/t silver and 0.07% copper at 0.40 AuEq cutoff.

Large Scale Mineralized System Encompasses Nucleus Deposit and Revenue Zone

Management believes the system has potential to host multi-million ounce gold resources with multi-billion pound copper resources similar to other deposits in the region based upon:

  1. Titan 24 geophysical survey covering an 30 sq km area shows large scale significant chargeability anomaly (near direct indicator of presence of mineralization) throughout the area (refer to figure 1)
  2. Presence of Nucleus deposit on edge of this anomaly;
  3. Proximity of Revenue Target Deposit to Nucleus Deposit and recognition that holes which returned significant results are located on the edge of the significant chargeability anomaly.
  4. To date, drilling in the Nucleus Deposit and the Revenue Target Deposit has only tested a very small portion of the significant chargeability anomaly seen in Figure 1.

2011 Program

Planning for a significant follow up exploration program for 2011 at Freegold Mountain is underway. 3D modeling of existing drill and resource results, combined with the Titan geophysical survey is being utilized to delineate targets to expand resources and test the Titan geophysical anomalies. Details of the program will be released when finalized.

2010 Program and Analysis

As part of an evaluation to determine the potential of the Revenue Zone to host a significant resource, Northern Freegold completed a program of reverse circulation and diamond drilling totaling 7,165 m in 2010. The drill program was successful in delineating significant near surface gold, copper and silver mineralization in the Guder and Discovery targets over an area of 450 m x 150 m x 200 m deep and 800 m x 150 m x 150 m deep respectively (see news releases Sept. 16 and Nov. 22, 2010).

GeoVector Management Inc., of Ottawa Ontario was contracted to conduct an independent assessment of the potential resource incorporating the 2010 program, and historical drilling. The database is based upon more than 130 shallow drill holes and ~6,000 assays. The database includes assays from rotary airblast, reverse circulation and diamond drilling conducted by Northern Freegold in 2010 and 2007 as well as assay data from re-sampling of historic drill core in 2010.

Dr. A. Armitage, P. Geol., is the Qualified Person, as defined by NI 43-101, for the Freegold Mountain Project, including the Revenue Target, and has reviewed the technical information in this release.

Geovector has reviewed and approved the information in this release.

Conference call Monday February 28, 2011

Northern Freegold is pleased to give investors an opportunity to hear President & CEO Susan Craig discuss the significance of the recently released resource and target deposit calculations. Phone lines will be open following the update. The call has been scheduled for Monday February 28th, 2011 commencing at 1:30 PM PST (4:30 PM EST). Participants may call in to join the conference call at 416-340-8530 or Toll Free at 1-877-240-9772. If you are unable to join us at the designated time, please go to our home page at www.northernfreegold.com where you will find the audio copy of the conference call. Also, you may call in at 905-694-9451 / 800-408-3053 Pass code: 5818145 for an instant replay until March 14, 2011.

Northern Freegold is a well-financed rapidly advancing Canadian-based precious metals exploration and development company. NFR 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

Susan P. Craig, President & CEO

Cautionary Note Regarding Forward-Looking Statements

The information in this press release includes certain "forward-looking statements" All statements, other than statements of historical fact, included herein including, without limitation, plans for and intentions with respect to the company's properties, statements regarding intentions with respect to obligations due for various projects, strategic alternatives, quantity of resources or reserves, timing of permitting, construction and production and other milestones, are forward looking statements. Statements concerning Mineral Reserves and Mineral Resources are also forward-looking statements in that they reflect an assessment, based on certain assumptions, of the mineralization that would be encountered and mining results if the project were developed and mined in the manner described. Forward-looking statements involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from NFR's expectations include the uncertainties involving the need for additional financing to explore and develop properties and availability of financing in the debt and capital markets; uncertainties involved in the interpretation of drilling results and geological tests and the estimation of reserves and resources; the need for cooperation of government agencies and First Nation groups in the exploration, and development of properties; and the need to obtain permits and governmental approval. NFR's forward looking statements reflect the beliefs, opinions and projections of management on the date the statements are made. NFR assumes no obligation to update the forward looking statements if management's beliefs, opinions, projections, or other factors should they change.

Cautionary Note Regarding Reserve and Resource Estimates

This press release has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ from the requirements of U.S. securities laws. Unless otherwise indicated, all resource and reserve estimates included in this press release have been prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") and the Canadian Institute of Mining and Metallurgy Classification System. NI 43-101 is a rule developed by the Canadian Securities Administrators which establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Canadian standards, including NI 43-101, differ significantly from the requirements of the United States Securities and Exchange Commission ("SEC"), and resource and reserve information contained herein may not be comparable to similar information disclosed by U.S. companies. In particular, and without limiting the generality of the foregoing, the term "resource" does not equate to the term "reserves". Investors should also understand that "inferred mineral resources" have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an "inferred mineral resource" will ever be upgraded to a higher category. The estimation of quantities of resources and reserves is complex, based on significant subjective assumptions and forward-looking information, including assumptions that arise from the evaluation of geological, geophysical, engineering and economic data for a given ore body. This data could change over time as a result of numerous factors, including new information gained from development activities, evolving production history and a reassessment of the viability of production under different economic conditions. Changes in data and/or assumptions could cause reserve estimates to substantially change from period to period. No assurance can be given that the indicated level of mineral will be produced. Actual production could differ from expected production and an adverse change in mineral prices could make a reserve uneconomic to mine. Variations could also occur in actual ore grades and recovery rates from estimates.

To view a map of the Nucleus Deposit & Revenue Target Deposit please go to the following link: http://media3.marketwire.com/docs/nfrb224.pdf.

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

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