Northern Lion Gold Corp.
TSX VENTURE : NL
FRANKFURT : N3E

Northern Lion Gold Corp.

June 29, 2011 13:00 ET

Northern Lion Drills 24.3 Metres Grading 1.3 g/t Gold at Evloimeni Target, Republic of Cyprus

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 29, 2011) - Northern Lion Gold Corp. (the "Company" or "Northern Lion") (TSX VENTURE:NL)(FRANKFURT:N3E) wishes to announce results from the five holes drill on the Company's 100% owned Evloimeni project, located in the western portion of the Republic of Cyprus. This diamond drill program was part of a larger drill program totaling 34 holes within five project areas. The Evloimeni drilling targeted surface mineralization along with geophysical anomalies generated by the Induced Polarization ("IP") survey and recent surface geochemical sampling. The project is located 2kms southeast of the former producing Limni Mine which is reported to have had a total reserves of 16.4 million tonnes at a grade of 1.0% Copper and 3.4 grams per tonne ("g/t") gold in the massive sulfide.

Five holes were completed during the 2011 drill program, with holes 11EV01 through 11EV04 located in the vicinity of the existing cut. Hole 11EV05 was located 350 metres to the southeast along the trend to test a surface gold anomaly.

Hole 11EV01 was drilled in the base of the old cut and intersected a zone of anomalous gold mineralization between 8.4 metres and 50.4 metres, with a higher grade portion from 8.4 metres to 32.7 metres averaging 1.3 g/t gold. Anomalous copper and zinc are also associated with this zone. Hole 11EV02 located approximately 120 metres southeast of EV01, was collared on a bench of the cut and was designed to test the 30 g/t surface gold anomaly. This hole intersected what appears to be a feeder system from 3 metres to 26.3 metres which averaged 0.6 g/t gold, with a higher grade interval from 3 metres to 15 metres averaging 1.07 g/t gold. Locally grades of up to 4.6 g/t over 1.0 metres occur beneath the high grade surface samples.

Hole 11EV03 was designed to test a target to the southwest of the main cut where a grab sample from a water well drill cuttings returned over 1 g/t gold. This hole intersected unaltered pillow lavas from 0 to 45 metres then intensely argillic altered lavas locally containing zones of massive and semi massive pyrite. Anomalous gold mineralization is present from 45.4 metres to 92.4 metres, with sporadic zones of anomalous copper up to 0.85% over 0.9 metres, and zinc up to 5.8% over 1.8 metres.

Anomalous gold mineralization was encountered from 4.5 to 35.85 metres in hole 11EV04. This hole is located at the southeastern edge of the old workings and targeted a series of surface rock samples containing over 1 g/t gold.

No significant mineralization was encountered in hole 11EV05 which was terminated at 86.0m due to technical issues and did not reach the intended target.

The following table contains the assay results for the Evloimeni drilling.

Hole #From
(m)
To
(m)
Interval
(m)
Au
g/t
Ag
g/t
Cu
%
Zn
%
11EV018.450.442.00.71.860.110.11
incl8.432.724.31.33.510.10.1
11EV02326.323.30.612.80.060.1
incl31512.01.075.180.110.16
11EV0345.492.447.00.451.690.060.36
incl45.470.625.20.612.340.10.65
11EV044.535.8531.40.411.310.010.03
11EV05**
** No significant assays

Historical work on the Evloimeni property included mapping, sampling, geophysical surveys, drilling and the pre-striping of an ore body in preparation for mining. It is believed that limited production took place, however no production records are known to exist. Prior to the Company's drill program Northern Lion completed grid based soil and rock sampling, and an IP survey covering the mineralization within the pre-stripped cut area and extended the grid to the southeast to cover a potential extension.

Evloimeni was one of the first properties visited by the company during the initial visit to Cyprus, at which time a sample from the cut assayed 7.5 g/t gold. Subsequent sampling by the Company has returned values up to 30 g/t gold in grab type samples and 2.06 g/t gold over 10.7 metres in chip samples.

History

The history of mineral exploitation (copper, gold and other metals) on the island of Cyprus dates back to the Bronze Age, approximately 5,000 years ago. The Phoenicians were the first to process copper on the island, followed by the Romans and this activity has continued to the present day. The evidence of this long history of mining is readily observed in the abundant ancient surface and underground workings along with extensive slag heaps. Mineral exploration in the Republic of Cyprus has been at a very low level over the last few decades, and management believes that there is a high probability of additional massive sulphide bodies being present that did not outcrop, as nearly all of the known deposits did.

The metal deposits of Cyprus are dominantly copper-bearing volcanogenic hosted massive sulphide "VHMS" deposits. These deposits are hosted within the pillow lava sequence of the Troodos Ophiolite Complex. The pillow lava sequence is divided into Upper and Lower Pillow Lavas, with the majority of massive sulphide bodies located along the contact between pillow lava sequences, and the remainder between the Lower Pillow Lavas and the Basal Group. All of the Company's applications overlie these important contacts. Gold mineralization associated with the massive sulphide ores has not historically been evaluated.

Quality Control and Assurance

The Company's field activities in Cyprus are under the direction of Jim Chapman, P.Geo. (BC), consultant to the Company and "qualified person", as defined by National Instrument 43-101, who is responsible for the technical content of this news release.

About Northern Lion

Northern Lion Gold Corp. is a Canadian mineral exploration company, listed on the TSX Venture Exchange and the Frankfurt Exchange. The Company is committed to building a strong portfolio of projects within mining-friendly and infrastructure-rich areas of Europe.

In addition to its exploration permits in Cyprus, the Company holds a 100% interest in its Moura Licence in Portugal and a 100% interest in one project in the historic Bergslagen mining district of southern Sweden.

NORTHERN LION GOLD CORP.

John Lando, President

This news release includes "forward-looking information", as such term is defined in applicable securities laws. The forward-looking information includes, without limitation, the success of exploration activities and other similar statements concerning anticipated future events, conditions or results that are not historical facts. These statements reflect management's current estimates, beliefs, intentions and expectations; they are not guarantees of future performance. The Company cautions that all forward-looking information is inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond the Company's control. Such factors include, among others, risks and uncertainties relating to exploration and development; the ability of the Company to obtain additional financing; the Company's limited operating history; the need to comply with environmental and governmental regulations; potential defects in title to the Company's properties; fluctuations in currency exchange rates; fluctuating prices of commodities; operating hazards and risks; competition; and other risks and uncertainties. Accordingly, actual future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward-looking information. All statements are made as of the date of this news release and, except as required by law, the Company is under no obligation to update or alter any forward-looking information.

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 news release.

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