Mr. Michael Iverson reports

NIOGOLD AND AURIZON COMMENCE DRILLING ON THE MARBAN BLOCK PROPERTY

Niogold Mining Corp.'s drilling operations have commenced on the Marban block property under the terms of the Aurizon Mines Ltd. option agreement. A $5.9-million program was approved for the first year of the option that includes 50,000 metres of diamond drilling. Two drill rigs were mobilized on the property on Aug. 30 and a third drill rig will be added later in the program.

As reported in Stockwatch on July 6, 2010, Aurizon can earn a 50-per-cent interest in the Marban block property, subject to underlying royalties, by:

• Incurring expenditures of $20-million over three years, of which a minimum of $5.0-million is a firm commitment to be spent in the first year;
• Completing an updated National Instrument 43-101-compliant mineral resource estimate;
• Making a resource payment equal to $30 (or $40 if the price of gold is then above $1,560 (U.S.)) multiplied by 50 per cent of the number of total gold ounces in the measured and indicated resource categories, plus $20 (or $30 if the price of gold is then above $1,560 (U.S.)) multiplied by 50 per cent of the number of total gold ounces in the inferred resource category.

Aurizon can earn an additional 10-per-cent interest, for a total of 60 per cent, by delivering a feasibility study, and an additional 5 per cent, for a total of 65 per cent, by arranging project financing for capital expenditures estimated by the feasibility study to place the project into commercial production. Niogold will be the operator during the initial earn-in period, and Aurizon will provide input on exploration programs and will become operator after the initial 50-per-cent interest has been earned.

The first-year drilling program will be mainly directed at better defining and increasing the near-surface gold resources at the Marban and Norlartic deposits.

Marban deposit work:

• 30,000 metres of shallow drilling, from surface to 300 metres vertical depth, to complete the drill hole pattern at 50-metre spacing and select infill drilling at 25-metre spacing;
• 5,000 metres to 10,000 metres of drilling along the depth extent of the Marban mine zones and mine sequence, principally between 300 metres and 500 metres vertical depth.

At the Norlartic deposit, work will comprise 5,000 metres to 10,000 metres of select shallow drilling, from surface to 200 metres vertical depth, to complete the drill hole pattern at 50-metre spacing.

Exploration

The company will complete 5,000 metres of drilling to investigate the lateral extent of deposits and high-grade quartz-gold vein systems along the Gold Hawk horizon.