Northern Gold Mining Inc.

Northern Gold Mining Inc.

July 12, 2010 08:00 ET

Northern Gold Appoints Michael Gross as Vice President Exploration and Updates Completion of $2,500,500 Brokered Private Placement

TORONTO, ONTARIO--(Marketwire - July 12, 2010) - Northern Gold Mining Inc. ("Northern Gold" or the "Company") (TSX VENTURE:NGM) is pleased to announce the appointment of Mr. Michael P. Gross, M.S., P. Geol., to the position of Vice President of Exploration. His responsibilities as part of the management team will include advancing the exploration program on the Company's Garrison Township Property. 

"With his extensive exploration and mining experience, proven track record, and knowledge of the Timmins Gold Camp, Mike is an invaluable addition to head up our technical team," said Martin Shefsky, President and CEO of Northern Gold. "He joins us at a critical time as we initiate the second phase of our 10,000 metre drill program at the Garrcon Project on our flagship gold property. With a strong technical team and sufficient capital, Northern Gold is now well positioned to aggressively advance our strategically located projects." 

Mr. Gross has both surface and underground gold mining experience and toured Northern Gold's Jonpol underground gold mine when it was in operation by Hillsborough Resources Ltd. He has more than forty years of professional experience in all facets of mineral exploration and mine development, including operational analysis, mine management, financial modelling, and mining operations. Currently he is also Vice President of Exploration for Freegold Ventures Ltd., a TSX listed gold exploration company in advanced exploration stage. 

During his career, Mr. Gross designed and implemented exploration programs resulting in the discovery and delination of resources that facilitated the successful growth of several mining and exploration companies - including Hecla Mining Co., Nayarit Gold Inc., Exall Resources Ltd., and Royal Oak Mines - and also managed and acquired companies that have seen over $900 million of increased market capitalization. Past positions include Vice President Exploration for Nayarit Gold Inc., Chief Operating Officer of Regis Resources Inc., Vice President of Operations for Exall Resources Ltd., Chief Operating Officer and Senior Vice President of Atlas Corp., Vice President of Operations for Royal Oak Mines Inc., as well as several years as a mining consultant. Mr. Gross has an undergraduate BS in geology from the University of Wisconsin, and holds a masters degree in economic geology from the University of Arizona. He holds several awards for excellence in mining. 

Northern Gold has established a work program to be funded by the proceeds of the $2,500,500 brokered private placement announced on July 6, 2010 (the "Offering") with BayFront Capital Partners Ltd. (the "Agent"). This work program on the Garrison gold property will include ongoing diamond drilling, surface exploration and prospecting, and database compilation and modeling.

In connection with the Offering and in recognition of the completion of related corporate finance work, the Commission pursuant to the Offering has been amended to an aggregate commission consisting of $100,000 payable in cash, and the issuance of 1,869,565 Hard Dollar Units and 1,978,637 Broker Units exercisable into Hard Dollar Units at $0.115 per Hard Dollar Unit for a period of 18 months following the closing date. Each Hard Dollar Unit consists of one common share of the Company and one common share purchase warrant (a "Hard Dollar Warrant"). Each whole Hard Dollar Warrant entitles the holder to purchase one common share at a price of $0.15 for a period of 18 months following the closing date.

About Northern Gold Mining Inc.

Northern Gold Mining Inc. is a Toronto based junior resource company dedicated to gold exploration in the Timmins and Kirkland Lake mining camps of Northern Ontario. The Company's focus is the Garrison gold property, which contains historic mining infrastructure with producing mines nearby to the east. Per a NI 43-101 report filed by Northern Gold on SEDAR on 21 October 2009, the Garrison gold property has an indicated resource of 253,100 tonnes grading 7.77 grams per tonne gold (63,200 ounces) and an inferred resource of 1,555,800 tonnes grading 4.93 grams per tonne gold (246,540 ounces). The Company is in the first year of an option agreement under which it is earning its 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 14 September 2009.

CAUTIONARY STATEMENT: 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. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

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