Northern Gold Mining Inc.
TSX VENTURE : NGM

Northern Gold Mining Inc.

September 13, 2010 07:00 ET

Northern Successfully Completes First Year of Garrison Gold Property Option

TORONTO, ONTARIO--(Marketwire - Sept. 13, 2010) - Northern Gold Mining Inc. (TSX VENTURE:NGM) ("Northern Gold" or "the Company") announced today that in accordance with terms of the Option Agreement regarding the Garrison Gold Property with ValGold Resources Limited (ValGold), Northern Gold has delivered a report to ValGold documenting completion of first year advanced exploration expenditures in excess of the $500,000 minimum required under the Option Agreement. Northern also made the cash payment of $200,000 required on the first anniversary of the signing of the Agreement. (Please see the Press Release dated September 14, 2009.) Northern is conducting advanced stage exploration on the Garrison Gold Property and may earn up to an 80% undivided interest in the Property. The report, summarizing details of the advanced exploration work as at July 31, 2010 and expenditures of $1,092,816 (unaudited) as at June 30, 2010 was presented to ValGold September 1, 2010.

The Garrison Gold Property, located along highway 101 about 30 kilometers west of the Quebec border is a property containing three gold mineralized areas that have been drilled by previous operators. Two of these areas are advanced stage exploration projects and are called the Jonpol Project and the Garrcon Project. The third is known as the 903 area. The Jonpol Project has the most drilling with over 400 holes defining mineralization over more than one and a half kilometers of strike length along the same structure in four related ore shoots. To date, all four are interpreted to be steeply dipping narrow, high grade vein type deposits. In the mid 1990's, Hillsborough Resources Limited mined and milled a 50,640 tonne bulk sample at a mill head grade of 6.82 g/t. The Garrcon project, containing 52 holes drilled by previous operators and was the subject of an underground exploration program by Cominco in the mid 1930's. The metasedimentary host rocks are faulted, fractured and recemented by silicification and gold bearing quartz veins such that the overall appearance somewhat resembles a stockwork type of mineralization. The mineralized area outcrops with visible gold present in some of the veins, and the area is amenable to open pit bulk mining methods. Northern Gold believes that, of the three mineralized areas on the Garrison Gold Property where previous drilling has been conducted, the Garrcon Project can be developed at the lowest cost in the least amount of time. The Company has therefore elected to focus the majority of its short term efforts and expenditures there with the goal of bringing this mineralized area on the property to a production decision in the shortest possible time.

Consequently, most of Northern Gold's work has been focused on completing advanced exploration diamond drilling on the Garrcon Project. The report to ValGold summarized 5,470 meters of diamond drilling completed in 26 drill holes with 2,330 meters in 11 holes completed in 2009 and another 3,140 meters completed in 15 drill holes through July 2010. Diamond drill logs for all the holes and all assay results received through July 31st were included. Immediately after signing the Option Agreement Northern Gold retained A.C.A. Howe International Limited to complete a NI 43-101 compliant Technical Report containing a resource calculation for the Jonpol Project (Please see "About Northern Gold Mining" below). The Technical Report was published on SEDAR on October 21, 2009. In May 2010, A.C.A. Howe was retained to complete a second NI 43-101 Technical Report, this time on the Garrcon Project. This report will contain a resource calculation based on the NI-43-101 compliant drill holes completed by previous operators on the Property plus the 11 drill holes completed by Northern Gold in 2009. Results of this resource calculation are expected in the second half of September 2010.

Northern Gold expects that by year end 2010, total expenditures to date plus the expenditures budgeted for the balance of the calendar year will reach a total of approximately $3 million. (The foregoing is a forward looking statement and conceptual in nature as Northern Gold does not have any revenue and must raise funds for those expenditures in the public marketplace for which there is no guarantee.)

Northern Gold wishes to announce that pursuant to the terms and conditions of its Stock Option Plan, it has granted, in the aggregate, 2,875,000 incentive stock options (the "Options") to the officers, management, directors and consultants of the Company. The options will be exercisable for a five year period at $0.27 per share. The options are subject to the approval of the TSX Venture Exchange and Shareholder approval of the recently amended stock option plan at the company's annual meeting.

About Northern Gold Mining

Northern Gold is focused on developing two advanced stage projects on its Garrison Gold Property in the world renowned mining districts of Kirkland Lake and Timmins in North Eastern Ontario. The property is located within the Abitibi greenstone belt along the Porcupine-Destor and the Munro Fault systems. The Property hosts several gold mineralized showings, including the advanced stage Jonpol and Garrcon Projects and the less advanced 903 gold mineralized area. Historic drilling was completed on all three of the referenced areas. The Garrison Township Property has historic mining infrastructure and producing mines are located in close proximity to the property. The Jonpol Project contains an indicated resource of 253,100 tonnes grading 7.77 g/t Au (containing 63,200 ounces of gold) and an inferred resource of 1.6 million tonnes grading 4.93 g/t Au (containing 246,540 ounces of gold) as reported in a NI 43-101 Technical Report filed by Northern Gold on SEDAR on 21 October 2009. The Company is in the second year of an option agreement under which it may earn up to an 80% interest in the Garrison gold property from ValGold Resources Ltd. ("ValGold") (TSX VENTURE:VAL). For more information on the option agreement, please see the Company's news release dated September 14, 2009.

The technical aspects of this press release has been reviewed and approved by Michael Gross M.S., P.Geol., Vice President Exploration for Northern Gold, who is the "Qualified Person" as defined by NI43-101 regulations for this project.

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.

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 release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

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