Northern Gold Mining Inc.
TSX VENTURE : NGM

Northern Gold Mining Inc.

July 24, 2009 13:54 ET

Northern Gold Mining Inc. Announces Closing of $221,633 Non-Brokered Private Placement and Announces $450,000 Non-Brokered Private Placement

TORONTO, ONTARIO--(Marketwire - July 24, 2009) - The Directors of NORTHERN GOLD MINING INC. (TSX VENTURE:NGM) ("Northern Gold") are pleased to announce the closing of a non-brokered private placement financing of $221,633 gross proceeds comprising the sale of 4,432,659 Units, sold at $0.05 per Unit which was announced on June 15, 2009. Each Unit consists of one common share issued on a hard dollar basis and one-half of one common share purchase warrant. Each whole common share purchase warrant entitles the holder to acquire one common share for $0.10 until January 24, 2011 (the "Warrant Term") provided, however, that should the closing price at which the common shares trade equal or exceed $0.20 for 15 consecutive trading days following November 25, 2009, Northern Gold may accelerate the Warrant Term to the date which is 30 days following the date a press release is issued by Northern Gold announcing the reduced Warrant Term. All securities issued in conjunction with the offering will be subject to a hold period, which expires on November 25, 2009. Union Securities Ltd. acted as a finder on a portion of the financing, and was paid a cash finder fee of $7,220 and was issued a broker warrant to acquire 206,300 Units for $0.05 per Unit until January 24, 2011.

In addition to the financing reported above, the directors of Northern Gold are pleased to announce a non-brokered private placement of $450,000 through the sale of 6,923,076 flow-through units ("FT Units") at $0.065 each to MineralFields Group, subject to regulatory approval and closing. Each unit consists of one common share issued on a flow-through basis and one common share purchase warrant, and each whole common share purchase warrant entitles the holder to acquire one common share for a period of two years for $0.10 in the first year after closing and $0.13 in the second year after closing. If Northern Gold's shares close on the TSX Venture Exchange four months after the date of issue for 15 consecutive trading days at a price of $0.20 per share or higher in the first year of the exercise period and at a price of $0.25 per share or higher in the second year of the exercise period, Northern Gold may accelerate the expiry time to 30 calendar days from the date express written notice is provided by the Company to the holder by way of registered mail. All securities issued in conjunction with the offering will be subject to a hold period, which expires four months after closing. Pursuant to this financing, a finder fee of $22,500 will be paid and a broker option to acquire 692,307 Units at $0.065 per Unit will be issued.

Proceeds of both financings will be used to fund exploration and working capital.

"We are very pleased to be entering into this relationship with MineralFields Group", said Martin Shefsky, President and CEO. "This is an important milestone in the growth of Northern Gold Mining Inc. and we look forward to working with MineralFields Group as we develop our holdings in proven mining camps of Kirkland Lake and Timmins in Northern Ontario."

About MineralFields, Pathway and First Canadian Securities®:

MineralFields Group (a division of Pathway Asset Management), based in Toronto and Vancouver, is a mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada as well as hard-dollar resource limited partnerships to investors throughout the world. Pathway Asset Management also specializes in the manufacturing and distribution of structured products and mutual funds (including the Pathway Multi Series Funds Inc. corporate-class mutual fund series). Information about MineralFields Group is available at www.mineralfields.com. First Canadian Securities® is active in leading resource financings (both flow-through and hard dollar PIPE financings) on competitive, effective and service-friendly terms, and offers investment banking, mergers and acquisitions, and mining industry consulting, services to resource companies. MineralFields and Pathway have financed several hundred mining and oil and gas exploration companies to date through First Canadian Securities®.

About Northern Gold:

Northern Gold Mining Inc. is a Toronto-based junior resource company dedicated to gold exploration in the proven mining camps of Kirkland Lake and Timmins in Northern Ontario. The goal of our experienced and highly-skilled management team is to maximize shareholder value through successful exploration and the aggressive testing of high quality targets.

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.

The TSX Venture Exchange does not accept 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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