Northern Orion Resources Inc.

Northern Orion Resources Inc.

May 25, 2005 09:00 ET

Northern Orion Announces Appointment of VP, Project Development for Agua Rica

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 25, 2005) - Northern Orion Resources Inc. (the "Company") (TSX:NNO)(AMEX:NTO) is pleased to announce the appointment of Brian Montpellier as Vice President, Project Development effective May 24, 2005. In this new role, Mr. Montpellier will be primarily responsible for the design and implementation of the project execution plan to take the Agua Rica project through financing, construction and into production.

Mr. Montpellier has 30 years of experience in developing mining and mineral processing plants in various jurisdictions around the world, including copper in Peru, oil sands in Alberta and gold in Spain. He has extensive feasibility study, project and construction management experience on major mineral projects gained in his tenure at Wright Engineers, Fluor and AMEC, in addition to his experience acting as an independent engineer for international banks. Most recently, Mr. Montpellier was the Operations Manager, Mining for AMEC in Vancouver, responsible for all project work.

"We are extremely fortunate to have accessed the extensive experience that Brian brings in the development of major mining projects. He has substantial international mining development experience on major projects and has worked closely with the major project finance banks," said David Cohen, President and CEO of Northern Orion. "We welcome Brian into Northern Orion to lead the Agua Rica development and continue to build the team that will bring Agua Rica into production safely, on time and within budget."

The Company has granted incentive options to directors, officers, employees and consultants for the purchase of a total of 1,995,000 common shares in its capital. The options are exercisable on or before May 10, 2012 at a price of $2.99 per share.

The Company will continue to build upon its progress to date with a strategy to advance Agua Rica so as to achieve maximum monetary returns in the shortest time frame. In addition, the Company continues to review and evaluate accretive acquisitions that could provide the Company with additional cash flow in the short to medium term.

David Cohen, President and CEO

Except for the statements of historical fact contained herein, certain information presented constitutes "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking statements, including but not limited to, those with respect to the price of gold, silver and copper, the timing and amount of estimated future production, the potential and/or projected cash flow generated from production, costs of production, reserve determination and reserve conversion rates, and the potential for further equity dilution involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of Northern Orion to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks related to international operations, risks related to joint venture operations, the actual results of current exploration activities, actual results of current reclamation activities, conclusions of economic evaluations, uncertainty in the estimation of ore reserves and mineral resources, changes in project parameters as plans continue to be refined, future prices of gold, silver and copper, economic and political instability in Argentina, environmental risks and hazards, increased infrastructure and/or operating costs, labor and employment matters, and government regulation as well as those factors discussed in the section entitled "Risk Factors" in Northern Orion's Renewal Annual Information form attached to Northern Orion's latest Form 40-F on file with the United States Securities and Exchange Commission in Washington, D.C. Although Northern Orion has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Northern Orion disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Accordingly, readers should not place undue reliance on forward-looking statements.

Contact Information