Northgate Minerals Corporation
AMEX : NXG
TSX : NGX

Northgate Minerals Corporation
Young-Davidson Mines, Limited
TSX VENTURE : ODM

Young-Davidson Mines, Limited

September 14, 2005 10:23 ET

Northgate to Acquire Young-Davidson Mines, Limited Advanced Exploration Property Containing 1.5 Million Resource Ounces of Gold

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 14, 2005) - (All figures in US dollars except where noted)

Northgate Minerals Corporation (TSX:NGX)(AMEX:NXG) and Young-Davidson Mines, Limited (TSX VENTURE:ODM) are pleased to announce that they have signed a merger agreement (the "Agreement"). Under the terms of the Agreement, approved by both Boards of Directors, Northgate will issue 0.7212 common shares of Northgate for every share of Young-Davidson. In a separate lock-up agreement, holders of 75% of Young-Davidson shares have already agreed to vote in favour of the transaction. Completion of the transaction is subject to the approval of 66-2/3% of Young-Davidson shareholders and approval of Canadian securities regulators, the TSX, the TSX Venture Exchange and the AMEX, amongst other conditions. The transaction is scheduled to close in November 2005 following the required shareholder vote, at which time Northgate will issue approximately 13.85 million shares and convertible securities to Young-Davidson security holders, which values the transaction at Cdn$20 million.

Acquisition Highlights

- Acquisition of one and a half million resource ounces of gold which include almost half a million ounces of gold (Measured & Indicated Resources) within a low-strip ratio open pit configuration and slightly more than one million ounces of gold (Inferred Resources) in a low-cost bulk mineable underground configuration.

- Excellent potential to double the current underground resource base and convert a large portion of the Inferred Resources into reserves.

- The property's production history demonstrates excellent ground conditions for low-cost bulk mining, ore which yields high gold recoveries through a simple metallurgical process and environmentally benign waste rock and tailings.

- The acquisition of Young-Davidson's gold property located in Ontario, Canada diversifies Northgate into another politically stable, mining friendly jurisdiction where there is community support for mining.

- Post acquisition exploration program is scheduled to begin in early 2006 with an initial Cdn$3 million diamond-drilling program focusing on the many established targets within the claim package.

Tom Obradovich, President and CEO of Young-Davidson Mines, stated; "We are pleased that Northgate shares our vision for the property. Over the last several years, Young-Davidson has consolidated its ground position, identified a number of exploration targets and intersected a number of new mineralized zones. However, at this stage in the development of the property, it is clearly time to bring in a partner with the development and operating skills necessary to take the project to the next level. When we assessed the gold mining industry, we found Northgate to be among the leaders in creating value, as they have demonstrated and continue to demonstrate with the Kemess operation and we are pleased to have concluded a deal with them. We view this combination as an excellent opportunity for our shareholders who will benefit from further development on the Young-Davidson Property by a financially sound mine operator while gaining exposure to the Kemess property and its strong operating cash flow. This is a Win-Win for both parties."

Ken Stowe, President and CEO of Northgate, stated; "The acquisition of the Young-Davidson property represents an excellent step in Northgate's long term growth plan to add to our asset base. We are acquiring substantial resource ounces in a historic mining area in Ontario at an attractive price. The project is in one of the premiere gold mining camps in North America and has excellent potential to yield substantially more ounces than are currently known. The Young-Davidson properties display all the characteristics of our ideal investment target by being a pure gold play in a politically stable, mining friendly jurisdiction, with the potential to produce 150,000 ounces of gold per year for a decade. Soon after the transaction closes, we will be mounting a substantial exploration program to move the project forward and ultimately look to use Northgate's management skills and financial capability to turn this exciting exploration project into a profitable mine."

YOUNG-DAVIDSON PROPERTY

The Young-Davidson property is located 60 km west of Kirkland Lake Ontario (Figure 1) and is accessed by a provincially maintained highway. The property consists of contiguous mineral leases and claims totaling 11,000 acres. Current resources for the property, as verified by an independent 43-101 compliant technical report prepared by Micon International Limited (Micon), are detailed in Table 1. The full text of the Micon technical report is available on SEDAR.



---------------------------------------------------------------------
Resources Short Tons Gold Grade Contained Gold
(oz / short ton) (ounces)
---------------------------------------------------------------------
Open Pit
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Measured 6,978,000 0.062 432,640
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Indicated 530,930 0.059 31,320
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Total Measured &
Indicated 7,508,900 0.062 463,960
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Inferred 363,400 0.039 14,170
---------------------------------------------------------------------
Underground
---------------------------------------------------------------------
Inferred 8,600,800 0.118 1,018,660
---------------------------------------------------------------------


Prior to the consolidation of the property by Young-Davidson, various claims were held by a number of parties and in the 1930s through the early 1950s two separate mines were operated by Ventures Ltd. and Hollinger Mines, producing a total of almost one million ounces of gold from almost 10 million tonnes of ore. The underground ore bodies exploited by these historic operators had exceptionally low cost structures brought about by the low-cost bulk mining configuration of the ore, high gold recoveries (93%) through a simple metallurgical process and environmentally benign waste rock and tailings.

For a location map of the Young-Davidson Gold Property, please click on the link below:

http://www.ccnmatthews.com/docs/ngx914.doc

TRANSACTION DETAILS AND TIMETABLE

Under the terms of the Agreement between Northgate and Young-Davidson, a wholly owned subsidiary of Northgate will amalgamate with Young-Davidson Mines, Limited and each Young-Davidson shareholder will receive 0.7212 common shares of Northgate Minerals Corporation for each common share of Young-Davidson. On closing, Young-Davidson security holders will receive approximately 13.85 million shares and convertible securities of Northgate valued at Cdn$20 million, which will represent approximately 6% of Northgate's total common equity. Completion of the transaction is contingent upon the approval of 66-2/3% of Young-Davidson shareholders and approval of Canadian securities regulators, the TSX, the TSX Venture Exchange and the AMEX, amongst other conditions.

Within the next few weeks, Young-Davidson will be mailing an Information Circular to its shareholders outlining the transaction, in preparation for a shareholders meeting that is tentatively scheduled for November 1, 2005. The transaction is expected to close on the first business day after this meeting once shareholder approval has been obtained.

CONFERENCE CALL AND WEBCAST

You are invited to participate in the Northgate Minerals Corporation live conference call and webcast where we will discuss our acquisition of Young-Davidson Mines, Limited. The call and webcast will take place on Wednesday, September 14, 2005, at 2:00 pm ET. The presentation package for the conference call will be uploaded for the webcast the morning of September 14 and posted on Northgate's web site at www.northgateminerals.com under Investor Info - Presentations page.

Scheduled speakers for the conference call are Kenneth Stowe, President and Chief Executive Officer, Jon Douglas, Senior Vice President and Chief Financial Officer and Chris Rockingham, Vice President Exploration and Business Development.

Webcast:

To view the webcast, go to www.northgateminerals.com and follow the link on the home page that says "webcast". Before viewing the webcast, please ensure that your system meets the Minimum System Requirements and that you have installed Windows Media Player. If you do not have high-speed internet access, please download the PDF version of our Management Presentation and follow along with the audio broadcast.

Teleconference:

You may participate in the Northgate Conference Call by calling (416) 695-9753 or toll free in North America at 1 (877) 461-2816 with reservation number T585049S. To ensure your participation, please call five minutes prior to the scheduled start of the call. The archived teleconference may be accessed by dialing 416-695-5275 or 1-888-509-0082.

Northgate Minerals Corporation is a gold and copper mining company focused on operations and opportunities in the Americas. The Corporation's principal assets are the 300,000-ounce per year Kemess mine in north-central British Columbia and the adjacent Kemess North deposit, which contains a Proven and Probable Reserve of 4.1 million ounces of gold. Northgate is listed on the Toronto Stock Exchange under the symbol NGX and on the American Stock Exchange under the symbol NXG.

Cautionary Note to US Investors

The United States Securities and Exchange Commission (the "SEC") permits mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms in this news release, such as "mineral resources," that the SEC guidelines strictly prohibit us from including in our filings with the SEC. US investors are urged to consider closely the disclosure in Northgate's 2004 Annual Report on Form 40-F. This disclosure can be reviewed on EDGAR at www.sec.gov.

Forward-Looking Statements

This news release includes certain "forward-looking statements" within the meaning of section 21E of the United States Securities Exchange Act of 1934, as amended. These forward-looking statements include estimates, forecasts, and statements as to management's expectations with respect to, among other things, future metal production and production costs, potential mineralization and reserves, exploration results, progress in the development of mineral properties, demand and market outlook for commodities and future plans and objectives of Northgate Minerals Corporation (Northgate). Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate", "believe", or "continue" or the negative thereof or variations thereon or similar terminology. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management are inherently subject to significant business, economic and competitive uncertainties and contingencies. 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 Northgate's expectations are disclosed under the heading "Risk and Uncertainties" in Northgate's 2004 Annual Report and under the heading "Risk Factors" in Northgate's 2004 Annual Information Form (AIF) both of which are filed with Canadian regulators on SEDAR (www.sedar.com) and with the United States Securities and Exchange Commission on EDGAR (www.sec.gov). Northgate expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

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

Contact Information

  • Northgate Minerals Corporation
    Mr. Ken G. Stowe
    President and Chief Executive Officer
    (416) 216-2772
    www.northgateminerals.com
    or
    Young-Davidson Mines, Limited
    Mr. Tom Obradovich
    President and Chief Executive Officer
    (416) 364-0042
    www.youngdavidson.com