An anonymous director reports

NORTHGATE MINERALS AND BNP PARIBAS SIGN ENGAGEMENT LETTER FOR $100 MILLION PROJECT DEBT FACILITY

Northgate Minerals Corp. has entered into an engagement letter with BNP Paribas for the purpose of establishing a $100-million seven-year project debt facility for construction of Northgate's Young-Davidson mine, located in Northern Ontario. BNP Paribas has been given an exclusive mandate to act as lead arranger of the facility. The establishment of the facility remains subject to due diligence, credit approval, documentation, and other factors. The cost of the facility is expected to be consistent with other senior secured project financings of a similar nature. The indicative terms of the facility included in the engagement letter do not include a hedging requirement. Closing of the facility is anticipated in the fourth quarter of 2010. (All figures are in U.S. dollars.)

Young-Davidson is located near the town of Matachewan, 60 kilometres west of Kirkland Lake. Northgate received the key permit for development of the Young-Davidson mine in July and commenced surface construction activities on Aug. 3, 2010. Using today's spot prices, the mine is expected to generate $2.2-billion pretax operating cash flow, a pretax net present value 5 per cent of $865-million and a pretax internal rate of return of 25 per cent. The mine is forecasting average production of 180,000 ounces of gold per year at a cash cost of $350 per ounce over a 15-year mine life beginning in 2012.

BNP Paribas is one of the six strongest banks in the world (rated AA by Standard & Poor's; that is, third rating on a scale of 22) and the largest bank in the eurozone by deposits. With a presence in more than 80 countries and about 200,000 employees, including 160,000 in Europe, BNP Paribas is a leading European provider of financial services on a worldwide scale. It ranks highly in its three core activities: retail banking, investment solutions, and corporate and investment banking. In retail banking, the group has four domestic markets: Belgium, France, Italy and Luxembourg. BNP Paribas is rolling out its integrated model across the Europe-Mediterranean zone and boasts a large network in the United States. BNP Paribas personal finance is the leader in consumer lending in Europe. In its corporate and investment banking and investment solutions activities, BNP Paribas also enjoys top positions in Europe and solid and fast-growing businesses in Asia and the Americas.