Mr. Martin Shefsky reports

NORTHERN GOLD INCREASES GARRCON DEPOSIT RESOURCE ESTIMATE 77%

Northern Gold Mining Inc. has released the results of an updated resource estimate for its Garrcon deposit, including the first measured resource for the deposit. This National Instrument 43-101 report, independently prepared by ACA Howe International Ltd. of Toronto, Ont., determined that at the Garrcon gold deposit, "Northern Gold's exploration drilling programs from 2009 to 2011 have confirmed a significant gold resource and have been successful in (a) adding metal content (ounces) and (b) upgrading inferred mineral resources to the indicated category and the indicated mineral resources to the measured category." Using a cut-off grade of 0.1 gram per tonne (g/t) gold for mineralized zone interpretation, Howe outlined a mineralized zone that is nearly vertical, 1,225 metres long, up to 650 metres deep and 300 metres wide (on average). Howe concludes that the property merits the expenditure of additional funds to continue expanding, delineating and developing the resource, as well as the implementation of detailed metallurgical testwork that can be used in any future project feasibility study. The full NI 43-101 technical report will be filed on SEDAR within 45 days.

"Northern Gold continues to progress with its plans to develop a producing gold mine on its Garrison property. This latest NI 43-101 resource update on the Garrcon deposit provides our first measured resource. The total NI 43-101 mineral resources for the Garrison gold property includes the Garrcon (updated here) and the Jonpol deposit (unchanged since the previous technical report filed on SEDAR) are now 604,000 ounces of gold measured, 731,000 ounces of gold indicated and 614,000 ounces of gold inferred. This illustrates the steady increase in size and quality in response to our ongoing drilling and justifies our continued faith in the project," said Martin Shefsky, president and chief executive officer of Northern Gold Mining. "Northern Gold will continue its exploration program, including both infilling and step-out drilling, as the deposit remains open to the north, east, west and at depth (the south side being bounded by the Destor-Porcupine fault). In addition the company is focusing resources to prepare a feasibility report as its next step toward developing the property for production."

Garrcon deposit mineral resources

For this NI 43-101 resource update Howe retained the block model cut-off grade of 0.3 g/t. Based on Howe's statistical review (1,174 measurements) of continuing specific gravity (SG) testing by Northern Gold, the average SG was increased slightly from 2.73 grams per cubic centimetre to 2.79 grams per cubic centimetre for the mineralized resource blocks. The new drilling (both infill and step-out) confirmed the uniformity of the mineralization, with a very strongly correlated variogram at the same optimized 25-metre drill hole spacing for measured resources and 40-metre drill hole spacing for indicated resources as the two previous technical reports on the Garrcon deposit (SEDAR filed Nov. 5, 2010, and Aug. 8, 2011). The resource model is anisotropic, with the principal direction along strike, the secondary direction vertical and tertiary direction perpendicular to strike. The more widely spaced step-out holes on the east end of the model have a lower average block model grade.

With each successive resource update the quality of the resource has increased (inferred moved to indicated or measured), and the block model average grade has also increased.

The technical report identifies, estimates and summarizes the Garrcon deposit resources above and below the 200-metre elevation for each mineral resource category. These resources are shown in the associated table.

               SUMMARY OF NON-DILUTED MINERAL RESOURCES BY CATEGORY

                                      Block
                                    cut-off       Tonnes       Average
                                      grade        above    gold grade
Mineral resource category             (g/t)      cut-off         (g/t)         Ounces

Measured
Less than 200 m deep                    0.3   16,400,000          1.04        548,000
More than 200 m deep                    0.3    1,240,000          1.41         56,000
Total measured                          0.3   17,640,000          1.06        604,000
Indicated
Less than 200 m deep                    0.3    9,230,000          0.92        274,000
More than 200 m deep                    0.3   11,600,000          1.06        394,000
Total indicated                         0.3   20,830,000          1.00        668,000
Total measured and indicated            0.3   38,470,000          1.03      1,272,000
Inferred
Less than 200 m deep                    0.3    4,450,000          0.67         95,000
More than 200 m deep                    0.3   11,330,000          0.75        272,000
Total inferred                          0.3   15,780,000          0.72        367,000

Notes on mineral resource estimate:

(1) Cut-off grade for mineralized zone interpretation was 0.1 g/t. 
(2) Block cut-off grade for defining mineral resources was 0.3 g/t. 
(3) No top-cut grade was used. 
(4) Gold price was $1,500 (U.S.) per troy ounce. 
(5) Zones extended up to 100 metres downdip from the last intercept. Along
strike, zones extended halfway to the next cross-section. 
(6) Minimum width was five metres, though in no place was the zone that narrow.
(7) Non-diluted. 
(8) No mineral reserves were identified. Mineral resources that are not
mineral reserves do not have demonstrated economic viability. 
(9) Resource estimate prepared by Doug Roy, MASc, PEng, ACA Howe
International Ltd. 
(10) A specific gravity (bulk density) value of 2.79 was applied to all
blocks -- a representative value based on 1,174 measurements. 
(11) Ordinary block kriging (OBK) was used for estimating block grades. 
(12) Measured mineral resources were defined where three holes were used to
estimate block grades and the average distance to samples was 25 metres
or less. Indicated mineral resources were defined where three holes were
used to estimate block grades and the average distance to samples was 40
metres or less (based on variography). 
(13) The volume/tonnes of historic underground exploration workings have
not been subtracted from this mineral resource estimate -- the amount
would not be significant compared with the volume/tonnes of mineral
resource.

Howe also includes three tables in its report that illustrate the variations in tonnes, grade and ounces contained within the Garrcon deposit mineralized zone at various cut-off grades, both above and below the block cut-off of 0.3 g/t gold used for this resource calculation.

             SUMMARY OF MEASURED RESOURCES AT VARIOUS BLOCK CUT-OFF GRADES
               
                       Less than 200 metres deep             More than 200 metres deep    
Cut-off            Tonnes      Average                Tonnes     Average
grade               above   gold grade                 above  gold grade
(g/t)             cut-off        (g/t)    Ounces     cut-off       (g/t)        Ounces

4.00              430,000        11.55   161,000     110,000        8.45        31,000
2.00            1,100,000         6.15   218,000     150,000        7.04        34,000
1.50            1,780,000         4.45   256,000     190,000        5.90        36,000
1.00            3,630,000         2.81   328,000     280,000        4.34        40,000
0.90            4,370,000         2.49   350,000     320,000        3.94        41,000
0.80            5,200,000         2.23   373,000     390,000        3.38        43,000
0.70            6,300,000         1.97   399,000     500,000        2.83        45,000
0.60            7,750,000         1.72   429,000     610,000        2.44        48,000
0.50            9,840,000         1.47   466,000     760,000        2.06        50,000
0.40           12,650,000         1.25   507,000     950,000        1.73        53,000
0.30           16,400,000         1.04   548,000   1,240,000        1.41        56,000

              SUMMARY OF INDICATED RESOURCES AT VARIOUS BLOCK CUT-OFF GRADES

                       Less than 200 metres deep            More than 200 metres deep    
Cut-off            Tonnes      Average               Tonnes      Average
grade               above   gold grade                above   gold grade
(g/t)             cut-off        (g/t)    Ounces    cut-off        (g/t)       Ounces

4.00              110,000        21.24    76,000    550,000         7.97      141,000
2.00              380,000         7.99    98,000    870,000         6.04      169,000
1.50              660,000         5.37   114,000  1,330,000         4.53      194,000
1.00            1,370,000         3.22   141,000  2,550,000         2.94      241,000
0.90            1,730,000         2.73   152,000  2,950,000         2.67      253,000
0.80            2,260,000         2.29   167,000  3,510,000         2.38      269,000
0.70            2,990,000         1.92   184,000  4,220,000         2.10      286,000
0.60            3,710,000         1.67   199,000  5,240,000         1.82      307,000
0.50            4,910,000         1.40   220,000  6,660,000         1.55      332,000
0.40            6,580,000         1.15   244,000  8,830,000         1.28      363,000
0.30            9,230,000         0.92   274,000 11,600,000         1.06      394,000

             SUMMARY OF INFERRED RESOURCES AT VARIOUS BLOCK CUT-OFF GRADES
                   
                       Less than 200 metres deep           More than 200 metres deep    
Cut-off            Tonnes      Average               Tonnes       Average
grade               above   gold grade                above    gold grade
(g/t)             cut-off        (g/t)    Ounces    cut-off         (g/t)     Ounces

4.00               40,000        13.12    17,000    260,000          8.53     71,000
2.00               50,000        11.53    18,000    470,000          5.75     86,000
1.50               90,000         7.15    20,000  1,010,000          3.61    117,000
1.00              210,000         3.64    24,000  1,460,000          2.88    135,000
0.90              480,000         2.08    32,000  1,610,000          2.70    140,000
0.80              690,000         1.71    38,000  1,770,000          2.53    144,000
0.70              990,000         1.42    45,000  2,230,000          2.16    155,000
0.60            1,320,000         1.23    52,000  2,740,000          1.88    165,000
0.50            2,210,000         0.96    68,000  3,560,000          1.57    180,000
0.40            3,050,000         0.82    80,000  5,600,000          1.16    209,000
0.30            4,450,000         0.67    95,000 11,330,000          0.75    272,000

Mineral resources are not mineral reserves and by definition do not demonstrate economic viability (a feasibility report is required to upgrade the mineral resource to a mineral reserve). There is no certainty that all or any part of the mineral resources will be converted into mineral reserves.

Howe's deposit model was extended to the east, to the north and to depth from the previous resource estimate. Since the last technical report, 100 holes totalling 35,491 metres have been added to the Garrcon deposit. The number of assays has nearly doubled with 30,066 one-metre-regularized assays being added to the Garrcon database. This deposit model continued to identify a broad zone of mineralization that extends over an east-west distance of 1,225 metres, which remains open to the east, to the west, to the north and to depth. The resource width varies but is approximately 300 plus metres wide. The deposit is bounded on the south by the Destor-Porcupine fault system. Both contact zones are nearly vertical, with a very slight dip to the south.

The Howe model is constrained by the interpreted geology. A portion of the Green zone (see Northern Gold's press releases dated April 3, 2012, and March 2, 2012), which is located on the north side of the north-bounding ultramafics (vertically dipping), was modelled as a separate domain. The Green zone is a new area of mineralization that was not included in previous technical reports. Because it is bounded to the south by the ultramafics this area was constrained by these ultramafics in the Howe deposit model.

Howe recommendations

The previous mineral resource update report (SEDAR filed Aug. 8, 2011) included a preliminary economic assessment (PEA). That PEA is only associated with that report and is not applicable to this resource update.

However, as a part of that PEA, Howe had prepared a list of recommendations for the overall project, which Northern Gold believes are still applicable. As a part of its continuing strategic plan to bring the Garrison property into production, Northern Gold continues to incorporate Howe's recommendations to further refine estimates of costs, recoveries, engineering and mine design to facilitate the development of a feasibility study to support development of the Garrison property gold mine.

• Continue the advanced exploration permitting currently in progress to be followed by the work necessary for operational permitting;
• Expand the permitting process to include potential mill sites, heap leach pads and tailings management areas using claims recently acquired by Northern;
• Continue and expand the current drilling program to:
  • Implement and complete a detailed metallurgical testwork program to better define the optimal flow sheet design for the mill; including, if needed, bulk sampling and pilot plant testing;
  • Implement and complete a metallurgical testwork program to determine heap leach recovery rates and percentages for the deposit, including, if needed, long-term column tests;
  • Continue testing the deposit for any potential acid rock drainage (ARD) and confirmation of the relatively high calcium content which is expected to neutralize any ARD potential;
  • Initiate a program of structural mapping;
  • Initiate a program to determine rock strengths for pit wall stability.

Northern Gold's continuing exploration work continues to implement Howe's recommendations as illustrated by the following bullet points:

• Northern doubled the drill rigs last fall to increase the rate at which resources are upgraded, delineated and discovered.
• Northern continues the infill drilling program to improve the quality of existing resources.
• Northern's doubling of the drill rigs has increased the infill drilling rate to speed up the upgrading of resources and the delineation of additional resources within the expanding resource footprint as identified by Howe in this latest technical report.
• Northern continues to perform step-out drilling beyond the current resource footprint to test metasediment outcrops and newly stripped metasediments hosting stockwork veining with anomalous gold mineralization.

Garrcon deposit opportunities

With each successive technical report the estimated resource quality has increased (previous inferred resources moved to indicated or measured), while the average block model grade continues to increase slightly. The resource footprint, as defined by Howe, remains open to additional step-out drilling to the east, west, north and at depth.

Drilling through what had appeared to be the northern boundary of the Garrcon deposit mineralization, an ultramafic body, now shows gold mineralization occurring on the north side of this barren ultramafic body. Included in this resource update is the Green zone, a constrained mineralized domain to the north of the ultramafic body. What is not included in this model is the area on the northwestern side of new resource model (area between this resource footprint and the JP East zone, see Northern Gold press release dated April 3, 2012). The full extent of this mineralization is not yet known; however, it appears to significantly reduce the occurrence of unmineralized rock between the Garrcon deposit and the eastern extension of the Jonpol mineralized zone (see technical report filed on SEDAR date Oct. 21, 2009).

The Garrcon mineral resource update information presented in this release has been reviewed and approved by Ian Trinder, MSc, PGeo, and Doug Roy, MASc, PEng, of ACA Howe International Ltd. or Toronto, Ont. Mr. Roy and Mr. Trinder are independent qualified persons as defined under NI 43-101 regulations.

We seek Safe Harbor.