Northern Lion Gold Corp.

Northern Lion Gold Corp.

April 11, 2007 11:00 ET

Northern Lion to Sell Finnish Assets for $10.46 Million to Focus on Portugal

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 11, 2007) - Northern Lion Gold Corp. (the "Company") (TSX VENTURE:NL)(FRANKFURT:N3E) has reached agreement to sell all of its Finnish mineral properties to Lappland Goldminers AB ("Lappland Goldminers"), a publicly-traded Swedish exploration company, for approximately Cdn$10.46 million, consisting of $5 million cash and 1,771,726 shares (the "Lappland Shares") of Lappland Goldminers, at a deemed price of approximately Cdn$3.08 per share. The purchase price is approximately equal to the entire amount of the Company's historical investment in Finland.

The Company has recently shifted the focus of its exploration and development activities to its Cercal and Moura projects in Portugal. The Company also holds a strong portfolio of projects in Sweden.

Company President, John Lando, commented: "This transaction will allow us to focus squarely on the world-class exploration opportunity that we have assembled in Portugal, without need for new financing or share dilution. The history of Rio Tinto, and the recent success of Lundin Mining's Neves Corvo project, demonstrate the magnitude of potential that lies within the under-explored region of the Iberian Pyrite Belt where we are currently defining drill targets.

Although the decision to sell our Haveri Project and other less advanced projects in Finland was not easy, with close to $11.5 million in cash and marketable securities, we will be well-positioned financially to proceed aggressively in Portugal. In addition, the Lappland Shares will give us a substantial equity interest in a company that is close to a production decision at its most advanced asset, the Faboliden gold project, and has the expertise and financial means to uncover hidden value at Haveri."

The transaction will take the form of the purchase by Lappland Goldminers of all of the shares and debt of the Company's wholly-owned Finnish subsidiary Northern Lion Gold Oy ("NLOY"). NLOY is the registered owner of the Company's Haveri gold project in southwestern Finland, as well as the Ansomaki claim, several claims in the Tampere Schist Belt, and several claims in the Lappland region of northern Finland.

Lappland Goldminers is a well established mineral exploration and development company with several projects in the "Gold Line" in Vasterbotten, northern Sweden. The shares of Lappland Goldminers trade in Sweden on the "First North" stock exchange under the symbol "GOLD".

Lappland Goldminers will pay the Company a $1,000,000 cash deposit, which is non-refundable if the transaction fails to close as a result of a breach of the purchase agreement by Lappland Goldminers. The Lappland Shares will be subject to volume restrictions on re-sale. No finder's fee is payable in connection with the transaction, which is subject to regulatory approval.

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. It has approximately 28 million shares issued, and on the completion of this transaction, will have $6 million in cash and a further $5.5 million in marketable securities.

In 2006, the Company was granted the Cercal exploration license from the Portuguese government mining authority to explore for metallic minerals over an area of approximately 240 square kilometres in the prolific Iberian Pyrite Belt of southern Portugal. In August 2006, Geotech Limited ("Geotech") of Aurora, Ontario, completed a 1,350 kilometre, helicopter-borne geophysical survey of the area for the Company using Geotech's advanced, deep-penetrating VTEM (Versatile Time-Domain ElectroMagnetic) system, which includes a high-resolution cesium magnetometer.

Interpretation of this data along with recently acquired gravity data is now complete and a series of high priority exploration targets have been identified for immediate follow-up. The Company has commissioned an independent NI 43-101 compliant technical report of the Cercal project in recognition of its status as the Company's principal exploration focus.

In late January 2007, the Company was notified by the Portuguese mining authority that it had been awarded the exclusive right to explore for base and precious metals in an area of approximately 374 square kilometers in the Moura-Villa Verde de Ficalho region of southeastern Portugal. A number of zinc-lead and silver occurrences are known within the license and the formal signing of the license contract is expected shortly.

In southern Sweden, the Company holds the Oxberg, Skyttgruvan, Skallingsberg, Halstjarn and Karlsgruvan projects in the historic Bergslagen mining district. These properties were acquired in 2006 and data compilation and review and limited soil sampling have been completed on the Bergslagen projects in preparation for field work. The Company also holds a 100% interest in the Nynasberget gold prospect that was recently acquired in the Jamtland region of central Sweden.


John Lando, President

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

Contact Information