Northern Gold Mining Inc.
TSX VENTURE : NGM

Northern Gold Mining Inc.

November 10, 2010 11:44 ET

Northern Gold Announces Second and Final Closing of $1,417,500 Brokered Private Placement

TORONTO, ONTARIO--(Marketwire - Nov. 10, 2010) -

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

Northern Gold Mining Inc. ("Northern Gold" or the "Company") (TSX VENTURE:NGM) announced today it has completed tranche two of the $5 million private placement financing (the "Offering") previously announced on October 13, 2010. Canaccord Genuity Corp. and BayFront Capital Partners Ltd., acting as co-lead agents of a syndicate including GMP Securities L.P. (collectively, the "Agents") exercised the Agents' Option to increase the offering from $3 million to $5 million. Tranche two of the Offering consisted of the sale of 3,150,000 Flow-Through Units at $0.45 per Flow-Through Unit for aggregate gross proceeds of $1,417,500.

Each Flow-Through Unit consists of one common share issued on a flow-through basis and one-half (½) of one common share purchase warrant of the Company (a "Flow-Through Warrant"). Each whole Flow-Through Warrant entitles the holder to purchase one common share at a price of $0.55 for a period of 24 months following the closing date.

The Company intends to use the net proceeds of the Offering for mineral exploration and working capital purposes.

The securities issued pursuant to the Offering are subject to a four month and one day statutory hold period. In connection with the completion of tranche two the Offering, the Agents received a cash commission equal to 7% of the Offering and the issuance of 252,000 broker warrants, with each broker warrant exercisable into one common share of the Company at $0.40 for a period of 24 months following the closing date and one common share purchase warrant (a "Broker Share Warrant"). Each Broker Share Warrant entitles the holder to purchase one common share of the Company at a price of $0.55 for a period of 24 months following the closing date.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons as defined under applicable securities laws unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

About Northern Gold Mining Inc.

Northern Gold Mining Inc. is a TSX-V listed, publicly traded junior resource company based in Toronto, Ontario, dedicated to the discovery and development of high value mineral deposits in the proven mining camps of Kirkland Lake and Timmins in North Eastern Ontario. Northern Gold is focused on developing two advanced stage gold deposits on the Garrison Gold Property. The property is located within the Abitibi greenstone belt along the Porcupine-Destor and the Munro Fault systems. The Property hosts several gold mineralized showings in addition to the two advanced stage Jonpol and Garrcon Deposits and the less advanced 903 gold mineralized area. Historic drilling was completed in all three referenced areas. The Garrison Gold Property has historic mining infrastructure at both the Jonpol and Garrcon deposits and producing mines are located in close proximity to the property. The Garrison Gold Property hosts total indicated resources of 4.0 million tonnes at a grade of 1.60 grams per tonne containing 207,200 ounces of gold and total inferred resources of 23.8 million tonnes at a grade of 1.01 grams per tonne containing 777,500 ounces of gold. These resources are contained in the Jonpol Deposit, a narrow vein deposit with underground mining potential and the Garrcon Deposit with its larger, more widespread stringer vein system and the potential to be developed via a bulk mining, open pit scenario. For more information on these resources, please refer to the 2010 Technical Report filed November 5, 2010 on SEDAR. The Company is in the second year of an option agreement under which it may earn up to an 80% interest in the Garrison gold property from ValGold Resources Ltd. ("ValGold") (TSX VENTURE:VAL). For more information on the option agreement, please see the Company's news release dated September 14, 2009.

CAUTIONARY STATEMENT: No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This News Release includes certain "forward-looking statements". All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, future plans and objectives of Northern Gold Mining Inc., are forward-looking statements that 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 Northern Gold Mining Inc.'s expectations are the risks detailed herein and from time to time in the filings made by Northern Gold Mining Inc. with securities regulators. 

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

Contact Information