Northern Gold Mining Inc.

Northern Gold Mining Inc.

September 06, 2012 14:54 ET

Northern Gold Enters Into Agreement to Acquire Buffonta Property

TORONTO, ONTARIO--(Marketwire - Sept. 6, 2012) - NORTHERN GOLD MINING INC. (TSX VENTURE:NGM) ("Northern Gold" or the "Company") and Tiger Gold Exploration Corporation ("Tiger Gold") have entered into a definitive agreement, under which Northern Gold is to acquire a 100% interest in the Buffonta Property near its Garrison Gold Property in exchange for a cash payment of $ 1.5 million, a 3% royalty and 3,000,000 common shares of Northern Gold to be issued on the first anniversary of the closing date of the agreement.

The Buffonta Property claims are located in Garrison, Thackeray and Harker Townships, 4 km southwest of the Garrison Gold Property, in northeastern Ontario. The claim group is comprised of a contiguous block of 77 unpatented and 24 patented mining claims covering 1,564 hectares. The Archean supracrustal rocks underlying most of the claim group are about 3.3 km south of the east-striking Destor-Porcupine Fault Zone, which is spatially associated with many of the major gold deposits in the Abitibi Greenstone belt. The southern portion of the claim group is intersected by the Ghostmount Fault which hosts the Holt-McDermott mine.

The Buffonta property is host to 3 known gold zones - the Open Pit Zone, the number 5 zone and the number 6 zone. Historical production reports suggest that 9,000 ounces of gold were recovered from a total of 70,000 tons milled at the Kerr-Addison Mill (source: Ontario Mineral Deposits Inventory of the MNDM). These same reports also suggest that a resource (unclassified) of 600,000 tons of material averaging 0.17 ounces of gold per ton remains in the 3 zones. A qualified person has not completed sufficient work to classify this historic information as current and the Company is not treating the historic information as current. Hence, the historical estimates should not be relied upon.

Mr. Greg Gibson, Northern Gold's President and CEO, stated: "We are excited to add the Buffonta Property, host to a past-producing mine with historical gold resources, to Northern Gold's asset base. The property presents significant upside exploration potential within undeveloped zones that are in close proximity to our Garrison Gold Property."

The transaction is subject to satisfactory due diligence by Northern Gold and receipt of all approvals required by the parties, including that of the TSX Venture Exchange.

The technical aspects of this press release have been reviewed and approved by Michael Gross M.S., P. Geo., Vice-President Exploration for Northern Gold, who is a "Qualified Person" as defined by NI 43-101.

CAUTIONARY STATEMENT: No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This news release contains forward-looking information which is not comprised of historical facts. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, Northern Gold's objectives, goals or future plans, statements regarding exploration results and exploration plans. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, capital and operating costs varying significantly from estimates, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, fluctuations in commodity prices, delays in the development of projects and the other risks involved in the mineral exploration and development industry, and those risks set out in Northern Gold's public documents filed on SEDAR. Although Northern Gold believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Northern Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

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

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