Northern Lion Gold Corp.

Northern Lion Gold Corp.

July 08, 2008 18:27 ET

Northern Lion Gold Corp.: Preguica Drilling Intersects 11.5 Metres Grading 7% Zinc, Drilling Continues at Cercal

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 8, 2008) - Northern Lion Gold Corp. (the "Company") (TSX VENTURE:NL)(FRANKFURT:N3E) announces the results from its initial two diamond drill holes, PR-27 and PR-28, on the Preguica prospect within the Company's 100% owned Moura Project, located in southern Portugal.

The Preguica prospect underwent historical drilling and development by the Portuguese government and Compagnie Royalle Austrienne des Mines (collectively, "Austrienne") during the 1960s. Austrienne outlined a geological estimate of 1.3 million tonnes averaging 7% zinc ("Zn") and 1.5% lead ("Pb") using a 3% zinc cut off. This estimate is taken from historical records that predate National Instrument 43-101 ("NI 43-101"), and is not compliant with the requirements of NI 43-101 and should not be relied upon.

The Company obtained a majority of the drill logs (written description of the drill core) and drill results from Austrienne's historical work. However, the original drill core was not stored or maintained and no longer exists. Diamond drill holes PR-27 and PR-28 were designed to twin historical holes PG-20 and PG-10, respectively, in order to provide the Company with a better understanding of the geological nature of the deposit and verify some of the historical drill data. The results of this twinning are as follows:

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Wid- Wid-
From To th Zn Pb Ag From To th Zn Pb Ag
Hole (m) (m) (m) (%) (%)(g/t)Hole (m) (m) (m) (%) (%)(g/t)
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PR-28 227.2 238.7 11.5 7.0 0.9 36.0 PG-10 229.0 244.5 15.5 13.2 1.9 78
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incl. 230.2 237.7 7.5 9.5 1.1 47.6
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PR-27 PG-20 116.8 122.4 5.6 9.0 6.1 75
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PR-27 155.5 160.5 5.0 3.3 0.5
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incl. 157.5 158.5 1.0 9.3 1.3 38.1
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PR-27 180.5 181.5 1.0 4.2 1.4 171.1 172.4 1.3 7.0 2.7 n/a
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Discussion of Results

When compared with the data obtained for historical drill hole PG-10, the Company's PR-28 hole intersected a similar mineralized interval at the projected depth.

The historical hole PG-20 reported two intercepts: the upper intercept of 5.6 metres, from 116.8 metres to 122.4 metres, reported 9.0% Zn, 6.1% Pb and 75 grams per tonne ("g/t") silver ("Ag"), and the lower intercept of 1.3 metres, from 171.1 metres to 172.4 metres , reported 7.0% Zn, 2.7% Pb and no reported Ag values. In the Company's PR-27 hole, the upper zone (approximately 115 metres to 125 metres) intersected only weakly anomalous Zn values (less than 0.4%). A second mineralized interval was encountered approximately 35 metres below the upper zone at 155.5 metres to 160.5 metres. This five metre zone contained 3.3% Zn and 0.5% Pb, including one metre of 4.2% Zn and 1.4% Pb. The lowest interval at 180.5 metres to 181.5 metres correlates with the 1.3 metre lower intercept in the historical PG-20 drill hole. However, the Company's "middle" intercept is not reported in the historical logs or results.

In general, the correlation between the results of PG-10 and PR-28 is good and the tenor of the mineralization is similar. The relationship between the results of PG-20 and PR-27 is less clear, which may be the result of several factors. This style of carbonate hosted replacement deposit is commonly erratic in shape and thickness, as the mineralizing fluids follow pre-existing joint and fracture planes in addition to zones with subtle chemical differences in the host rock composition. As a result of this feature, the mineralization can vary radically in grade and thickness over very short distances. Both current holes were located within four metres of the original collar locations. As a result of the absence of any historical core, it is impossible to re-assay to confirm the values reported.

Quality Control and Assurance

The Company's field activities in Portugal are supervised by Henrik Wik, M.Sc. (Geology and Mineralogy), under the direction of Joan McCorquodale, P.Geo. (BC), a consultant to the Company and a "Qualified Person", as defined by NI 43-101.

Drill widths presented above are drill intersection widths and may not represent the true widths of mineralization; the true thickness of mineralization is estimated to be 60% of the core length.

All drill core is transported by Company personnel to a secure logging and sampling facility located proximal to the exploration site. After the core has been logged and sample intervals marked, it is split by means of a diamond saw. One half of the core is then placed in a plastic bag with a waterproof numbered sample tag, which is sealed with a tamper-proof security tie while the balance is retained for future reference. The bagged samples are placed in secured boxes in preparation for transportation by truck to OMAC Laboratories Ltd., Athenry Road, Loughrea, Co. Galway, Ireland. OMAC Laboratories is accredited to international quality standards through the International Organization for Standardization/International Electrochemical Commission (ISO/IEC) 17025.

The total sample is jaw crushed dry to less than 2 millimetres, and a 500 gram representative sample is obtained using a Riffle splitter and pulverized so that 90% passes 100 micron. Samples are then analyzed for gold using forty four element ICP analysis by either Aqua Regia or Multi acid digestion, the gold analytical method employed by OMAC. This type of analysis uses a 50 gram sample for Pb-fire assay followed by atomic absorption spectrometry finish. In order to maintain a strict quality assurance/quality-control program, the Company and the laboratories employ a system of mineralized standards and blanks in each batch of samples.

Joan McCorquodale, P.Geo, a consultant to the Company and a "qualified person" as defined by NI 43-101, 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. The Company is well funded to continue to define and explore its existing projects and to acquire and explore new projects.

In addition to the Cercal and Moura licenses in Portugal the Company holds a 100% interest in seven projects in the historic Bergslagen mining district of southern Sweden. These properties were acquired in 2006, and data compilation and review, limited soil sampling and an airborne geophysical survey have recently been completed. Results from the airborne survey are expected shortly and will be used to help delineate targets for drilling.


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.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.

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